Results from our 24 + 29 October Auctions

Our 24 October and 29 October portfolios were our 39th and 40th for this year, offering a variety of property types throughout our Eastern Beaches residential areas, giving vendors an opportunity to sell and buyers an opportunity to buy during this “Spring listing” period.

As with previous weeks, the Headsail room of the Bucklands Beach Yacht Club, the home of 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 get 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 challenges of an adjusting market place 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 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 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.
At the time of publishing this report, a number of properties are currently under negotiation, so we will furnish sales within our following report.
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. This is also an 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 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.

Ken Ralph
Auction Services Manager