Alistair MacMillan is yet to find a home he wouldn't take to auction

We sat down with Alistair MacMillan Principal of Ray White Wilston and veteran of the industry for over 20 years. We discussed the changes he has made in his business since the pandemic, and why he believes the auction is more effective than ever.

Why do you recommend the auction method to your clients?

Firstly, it provides clients with the best opportunity to get the best possible price. Secondly, it also provides substantially less risk than any other method with no conditions on the contract be it prior to auction or at auction.

What are the steps you have taken to adapt your auctions during the pandemic?

We have not modified our campaigns very much. We were streaming our auctions live via a Google hangout prior to COVID, so there was no change in this area. We did need to have a lot of private inspections during the campaign, and bidders simply could not turn up. We created a Google hangout for our agents who were talking to bidders on the phone, so when they bid, the agent types in the price and the auctioneer sees the bid on the screen in front of him. It was pretty unique, as in some cases we had agents at home talking to bidders, then relaying the bid directly to the auctioneer.

Why is the perfect type of property to take to auction?

I have not seen a property in my entire career that has not been suited to the auction method.

What changes have you noticed in sellers / buyers over the last couple of months?

We have seen a decrease in listings, with sellers being uncertain about the market, yet there has been an increase in buyer demand. This has meant low days on market and very strong sales results.

What methods of marketing are you finding effective at the moment?

We are finding that around 50 per cent of our buyer enquiry is being generated from the internet portals and the other 50 per cent via our large office buyer database and social media. We have had some recent success selling homes in an ‘off market’ situation. This is where we have a qualified buyer who has interest in a home and we sell the property without the requirement of marketing. It can suit both the seller and buyer, however it is hard to know if you get the highest possible price as you don’t test the price with the open market.

Do you have an auction story from the thick of the COVID-10 period that stands out?

15 Fifth Ave, Wilston is one that stands out. We launched right in the middle of March. So we initially had the auction on-site, then had to move it to a virtual auction. We had open homes organised however with the restrictions, we had to cancel them and organise private inspection. We worked all day Saturday and Sunday showing buyers through every 15 minutes. We had a que of buyers literally running down the street and around the corner waiting to inspect. We had 87 inspections within 10 days, resulting in 7 offers and an unconditional sale.

What is your outlook on the real estate market in the Wilston area over the next couple of months?

I would think extremely positive. The real advantage with a suburb like Wilston is listings are always low. The tightly held pocket means that regardless of the market, there are never many homes for sale and always strong buyer demand. Most of our buyers are owner occupiers looking for their principal place of residence. So even if the market is forecast to soften in the future, this is of no concern to them as they plan to live there for the next 15+ years.

Why is it more important than ever for sellers to choose auction as their method of sale?

As a result of the royal commission and COVID, we are experiencing banks tightening up their lending requirement in conjunction with decreasing buyers pre-approvals. Approximately 80 per cent of all sales we make that are conditional on finance are requesting either an extension, a decrease in the contract price or terminating the contract as a result of no finance approval.

This increases the risk with sellers dramatically and can have a huge impact on the process, the time it takes and importantly the sale price. We find that the auction process not only completely removes this risk, it also provides sellers the opportunity to increase their sale price with increased competition.