We ended the winter school holidays with a clearance rate of 37.5% compared with Sydneywide of 51.2 % (Sun Herald figure).
Although the auction clearance rate has dipped in recent weeks, there has been a significant increase in auctions scheduled in our area over the coming months.
Just because a property doesn’t sell at auction the campaign is not considered a failure, but instead it is used as an initial strategy to see where the property sits in the market place.
However, the campaign is wasted if after the auction the property is not priced correctly.
Another interesting development is the change of attitude of agents in regard to auction price quoting. Less and less agents are doing this and I can understand why with recent fines issued and with market changes, agents can easily get it wrong. Under quote and then be fined when it sells well beyond expectations or over quote and no one turns up to bid.
An agent is not required by law to express to potential buyers as to what they think the property will sell for or what the vendor is hoping to achieve.
The auction process allows the general public to determine what they believe a true estimate of a property is. In fact, often buyers know better than the agent or sellers as they are looking at more properties.
