This Wycombe Rd home in Neutral Bay sold prior to auction for more than $5 million, smashing the price guide of $4.6 million-$4.9 million
THE changing property market is providing an opportunity for buyers and sellers to secure a good deal onlower north shore homes before they go to auction, new property data reveals.
However, agents say the auction campaign remains integral to the success of marketing campaigns, as they continue to create a sense of urgency to buy.
Since June, the number of properties selling prior to auction has crept up.
The latest CoreLogic auction report shows that over the weekend of July 7, 13 of the 19 properties going to auction sold before, with only two selling at auction and five either passed in or withdrawn.
No. 1A/22 Ross St, Wollstonecraft sold prior to auction for $3.35 million after strong negotiations with a number of buyers.
In the past eight weeks, homes selling prior to auction have eclipsed those selling at auction every week, with the exception of two, including this past weekend, which had 10 selling at auction, while eight sold prior.
Robert Holmes, director of Holmes St Clair, said selling before auction was certainly becoming a noticeable trend. “Vendors are listening to the market and are open to pre-auction interest, which is something buyers aren’t always are of. For them this can mean they may miss out if they are not prepared,” he said.
“During the boom, vendors were happy to see what would happen on auction day. In today’s market, they are more educated, and if presented with a good offer, they will consider it.”
While more homes may be selling before auction, Mr Holmes said the auction campaign was still vital to selling a home.
“We find the process draws the right buyers to the property and it presents a closing date on the campaign,” he said.
“It gives the buyers a sense of deadline, as it pushes them to come and look at the property, while with a private treaty, there isn’t that sense of rush and you don’t get numbers through the door like an auction campaign.”
Mr Holmes said selling prior was a win-win for both vendors and buyers.
“It means everyone can get a result much quicker,” he said. “It is good for vendors as they get good terms and sell their home very quickly, while buyers don’t need to worry about the auction.” Bernard Ryan, director of Ray White Lower North Shore, said homes that did sell prior to auction were not selling for less.
Photo: Troy Snook
Agents say that selling prior to auction can be a win for buyers and sellers
“The market is still strong and homes that do sell before auction, are going for good money. We sold a Neutral Bay house for a street record in a pre-auction sale,” Mr Ryan said.
That particular property, located in Wycombe Rd, sold for more than $5 million, a week before it was scheduled to go to auction.
It shattered the $4.6 million-$4.9 million price guide.
Mr Ryan said vendors who did sell early were likely to get a good result.
“The supply and demand still favours sellers, which is why auction campaigns are important, as it not only shows market strength, but allows a vendor to the get price possible, whether that is at auction or prior to,” he said.
article by realestate.com.au