Misleading and Incorrect Auction Reporting

I have just read the Sunday Telegraph’s property section and in particular under the “Sales action: South”, after attending several of the auctions reported here on Saturday and taking into consideration that I must be objective, there are several discrepancies but none more glaringly obvious as the paragraph regarding the property result in Lilli Pilli.

One of my staff attended this auction. If there were 3 bidders they must have all have introverted personalities to the extreme as no hands were raised which therefore makes it very difficult to pass the property in to a bidder at $3.1mil? Which begs the question, which auction did the writer of this editorial attend? From the article I would say none and definitely not the one in Lilli Pilli which had only one bid, a vendor bid of $3.1mil. I had assumed that these pieces were written by journalists that had attended the particular auctions they focused their articles on. Now that I understand that reporters are reliant on getting the information 2nd hand from the agent it explains why reporting of general market conditions can be so off the pulse and so far from reality. Any buyer/seller/person interested in real estate reading that article would think that 3 bidders competed for that property up until $3.1mil at which point negotiations stalled. In actual fact, no bidder put up their hand.

It is an offense of the Property, Stock and Business Agents Act 2002 for an agent to report that a property passed in when in fact it passed in with a vendor bid.  Since launching our auction tracking system we have noticed many discrepancies with what results are recorded for in the Sunday papers but none has been so inconsistent from an editorial piece.

To be fair when I checked the Sun Herald’s real estate section, the Home Price Guide’s auction results show the property passing in, no figure available but at least they didn’t embellish the  result in a paragraph of incorrect, misleading reporting.

I think the media has a responsibility if they are going to report on the real estate market that some effort is made to check accuracy.

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Mid week Easter auctions

Last nights local in-room auctions gave us 1 of each result. Of the 4 properties up for auction, 1 sold prior, 1 sold under the hammer, 1 was withdrawn and 1 was passed in.

There are no auctions scheduled this weekend, everyone will be enjoying the last rays of this stunning weather instead. Happy Easter!

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3rd March Auction clearance rate

A disappointing start for March auctions with Saturday 3rd having a local clearance rate of 37.5% compared with Sydneywide of 55%.

In fact, on Saturday only 1 property sold under the hammer but 2 did sell prior. Several were cancelled or withdrawn.

Last week‘s local auction clearance rate was 63%.

Beach & Bay tracks the auctions of the following suburbs in the 2230 and 2229 postcodes:
Cronulla, Woolooware, Burraneer, Caringbah, Caringbah South, Dolans Bay, Port Hacking and Lilli Pilli

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Vendor Bid VS Passed In

A client asked me on the weekend what the difference between the auction result of “Passed in” as opposed to “Vendor bid” is, after attending the auction at 51 Taloombi Street, Cronulla.

Just to clarify, a ‘vendor bid’ is when a property passes in (and is not sold) and the highest bid is by the vendor of that property.

On the other hand, if an auction is ‘passed in’, it means the highest bid was with the last buyer – but that bidding price did not reach the vendors expectations and so was not accepted as a sale.

On Sunday the papers advertised the auction result of 51 Taloombi Street as passed in, when in fact it was a vendor bid. Under NSW Legislation if an auction is passed in with a vendor bid – it needs to be recorded in the bidders record and subsequently advertised as such.

Beach & Bay were getting a bit tired of the lack of property data for our local postcodes 2230 and 2229 and so decided to start tracking auction results ourselves. We aim to provide up to date, accurate information regarding auctions in Cronulla South,Cronulla North, Woolooware, Burraneer, Caringbah and Dolans Bay. We have been documenting property data for the last 3 years and have always allowed the public to view – free of charge.  If you would like current or past auction results –please remember to check out our website first!

For more information on NSW Property Legislation see here.

If you would like to read more about WHY a vendor bid is used please view this Sydney Morning Herald article.

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