As with previous weeks, the Bucklands Beach Yacht Club, home to Ray White Auctions, attracted people either taking part in the buying process for the properties within this auction portfolio or who came along to see what is selling and for what price to give an idea of what is happening very currently in the real estate market.
The clearance rate under the hammer was as anticipated, as we face the challenges of an adjusting marketplace, where buyers need to sell their current home in order to buy, and banks are reluctant to arrange bridging finance. Mortgage finance is being scrutinised much more carefully and new requirements to meet the provisions of section 51A of the Overseas Investment Act 2005 which came into effect 22 October, requiring completion of the Residential Land Statement form prior to being able to buy property.
Nevertheless, the goal of our Auction Marketing Programmes is to provide our vendor clients with an unconditional sale, and this goal is not diminished by these current challenges.
Three weeks of marketing gives a base to work with conditional buying interest if unconditional buying interest is not achieved at, or immediately post auction.
Sought-after school zone addresses attracted buying interest with 43 Sunderlands Road an example, selling under the hammer at $1,410,000.
The ability to buy a three bedroom home in a “more affordable price range” attracted bidding with an under the hammer sale at 14 Lebanon Crescent in The Gardens in Totara Park, selling at $650,000. This sale emphasised price range comparisons outside of our Eastern Beaches residential catchment area.
Our confidence in our auction programmes remains as our goal is to achieve an unconditional sale for our vendor clients, particularly as there are relatively few weeks left in this year for vendors to achieve an unconditional sale; but also, this is as equally an important time for buyers to give them certainty as to where they will start 2019 either for schooling or other lifestyle changes.
It is important to continue to note that some vendors are not always able to accept buyer expectations of price for various reasons, but auction marketing is a very positive way of testing the market in a defined space of time to determine if the buyers’ price will enable them to make the lifestyle or property change that they envisage.
In addition to the comments above , there are always various reasons why potential buyers cannot meet the terms of an Auction For Sale and Purchase Agreement which is a totally unconditional agreement, however, we try to work with these potential buyers to attract the best conditional sale for our vendor clients.
Auction Services Manager