Auction tips: Why and when you should auction
WHEN it comes time to sell your property, the age-old argument of auction versus private treaty naturally comes to the fore.
There is no one best practice but the general consensus among property professionals is both type of housing and market confidence play pivotal roles.
Core Logic RP Data auctions spokesman Kevin Brogan crunched combined capital city data over the 12 months to November 2015 and found higher valued and more unusual properties were taken to auction.
“If you have a house in a street and there are 10 others like it, you have a pretty good idea of what it’s worth,” Mr Brogan said.
“But if it’s unique or unusual you might not be able to pick what it’s worth so you take it to auction on the proviso there’s enough interest.
“Looking at the combined capital city data over the past 12 months to November, you see the general median price of houses that sold at auction is about $950,000.
“Sold by private treaty that median is $530,000, so that tells you a story about types of properties taken to auction.”
Digging further into the Core Logic RP Data digits, almost half (45 per cent) of houses sold at auction sold at a price of at least $1 million whereas only 12.5 per cent of houses sold via private treaty sold for more than $1 million.
“If you’ve got a property you think will be a successful property to take to auction, agents will tell you it offers the maximum chance of success,” Mr Brogan said.
“If you’ve got interested parties it brings matters to a head so it’s a very effective tool.”
Market analyst and buyers’ agent Simon Pressley of Propertyology agrees with Mr Brogan, adding strength of market is key.
“When I would go to auction would be in a rising market when you could be confident there’s going to be competition because of the state of the market, look at Sydney last year,” Mr Pressley said.
“And other times, it might be best if there’s something niche about it.
“That’s often why more expensive homes go to auction because it’s harder to compare $3 million homes to other $3 million homes.”
News Corp columnist and Ray White auctioneer Haesley Cush believes any property can and, with the right marketing, should be auctioned as long as the agent knows what they’re doing.
TOP AUCTION TIPS FOR VENDORS:
• Visit your local Office of Fair Trading or Real Estate Institute website to educate yourself about auction rules and the process
• Experience is key so go to auctions to see how they work and what’s involved
• Research the market value of your property
• Select a realistic reserve price
• Only auction with experienced auction agents
• Talk to your agent and be honest with your feelings as it’s their job to support you through the process
• Don’t be disappointed if your property fails to sell on auction day. It is not a wasted effort.
“Auction allows buyers and potential buyers to judge a property on the features and benefits without price involved,” he said.
“The alternative is that buyers disregard properties all the time based on a listed price attached to photos only to find it’s eventually sold for a price they would’ve paid.
“The stats we carry show auctions get more buyers through the door because they don’t have a price and are usually better promoted.”
Mr Haesley said auctions open up a pool of possibility rather than capping a property by price.
“If your property has no price on it, the value is the value you attract,” he said.
“Alternatively, if you put a price on it and it’s the wrong price then you’re wasting advertising money and time.”
Original Publish: http://www.couriermail.com.au/
Brisbane’s Moreton Bay gaining strength: Terry Ryder
The latest event in the evolution of the Brisbane market is the strong emergence of the Moreton Bay Region in the far north of the city.
It has joined Logan City in the far south as the precinct with the most momentum in the Greater Brisbane area. Meanwhile, Ipswich City in the south-west is putting its hand up as well.
Most national commentators misunderstand what’s happening with the Brisbane market. They look at that single figure which apparently describes the whole Brisbane metropolitan area and conclude not much is happening. Australian Property Monitors says Brisbane prices rose 5% last year while CoreLogic RP Data says 4%.
But beneath that one generalised (and highly misleading) figure, there has been lots of activity in precincts which have recorded double-digit annual growth in median house prices.
Markets in the Greater Brisbane area have been on the move for about two years. The inner-city suburbs were busy a couple of years ago and then the middle-ring suburbs on the northside surged. Many of them had annual growth in the 13% to 15% range. The middle-ring suburbs on the southside joined the party 12-18 months ago.
Now it’s the outer-ring areas that are leading. There are still rising suburbs in those northside and southside middle-market precincts, but it’s the cheaper areas on the outskirts that have the greatest activity and momentum.
In this regard, Brisbane is displaying the same pattern we have seen over the past three years in Sydney and Melbourne – the upturn started in the near-city areas and gradually gravitated outwards from the centre. The Ripple Effect is alive and well in residential real estate.
In Brisbane, Logan City (which is the urban bridge between Brisbane and the Gold Coast) has been the market leader in terms of sales volumes for the past 12 months or so. But now it’s counterpart in the north, the Moreton Bay Region local government area (which is the urban bridge between Brisbane and the Sunshine Coast) has mounted a challenge.
Like Logan City, Moreton Bay Region is all about affordability, transport infrastructure and jobs nodes. Many of the suburbs of Moreton Bay Region – including Caboolture (the capital suburb), Morayfield and Deception Bay – have median prices in the $300,000s, while Burpengary and Narangba are in the low $400,000s.
These are high-volume housing markets: Caboolture, Deception Bay, Morayfield and Narangba have each recorded over 340 house sales in the past 12 months. Some have seen median prices rise 6-7% in the past year – but, in terms of price growth, they’re just getting started.
Median rental yields are an attraction for investors, ranging from 5.2% to 5.6% in most of the suburbs of the Moreton Bay Region.
The LGA includes the Redcliffe Peninsula, which has heightened appeal because the long-awaited Moreton Bay Rail Link will be completed this year.
The overall region has improved amenity through the evolution of the North Lakes master-planned community, which includes major retail (and will soon include an Ikea superstore).
The region also has good proximity to Brisbane Airport, the Port of Brisbane and the Australia Trade Coast industrial precinct, which means plenty of jobs are handy to the suburbs of Moreton Bay Region.
Originally Published On: http://www.propertyobserver.com.au/
Illegal homes sell-off will not affect market
THE property industry has backed Treasurer Joe Hockey’s plans to force 500 foreign home owners who breached investment rules to sell their properties.
Mr Hockey said an investigation into foreign investment had found the homes, worth a total of $1billion, were bought outside the investment rules.
He said among those found were overseas students – “some who had never filed a tax return have bought properties worth $5 million”.
Property Council of Australia chief Ken Morrison backed the move, but said it would not do anything to address housing affordability.
Mr Morrison said the sales were a “drop in the ocean” and far too few to impact the market.
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