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RAY White Group today successfully launched its innovative new private auction platform as bidders flocked to the virtual world to bid and buy in the ‘new normal’ way.
The brand-new facility, that allowed bidders to still see each-other as well as the auctioneer, provided the competitive forum that was synonymous with previous on-site public auctions.
The leading auction house which spends $30 million a year on its technology today reported a healthy 60 per cent auction day preliminary clearance rate from its 383 auctions booked nationally with four registered bidders on every lot. Ray White sells 25 per cent of all the auction stock in Australia or one in four properties.
Ray White Group Managing Director Dan White said today was a day for the true believers of the auction method.
“It proved that those agents and auctioneers that are adaptable and technologically talented can continue to thrive in the new environment,” he said.
“Don’t be swayed by people that say auctions don’t work anymore. Instead talk to those agents that have already adjusted and have found new solutions, and most importantly fought hard to deliver for their customers.
“There is panic everywhere, and the agency community is not immune, but great agents that stay focused on delivering for their customers continue to post great results,” Mr White said.
Any property that is listed for auction at Ray White is tracked through the entire campaign. Our withdrawn rates have increased a tad from 15 per cent to 25 per cent this week but that is hardly a collapse.
"And when our whole network get comfortable with the technology we hope that percentage will drop."
Ray White National Technology Manager Jason Alford said more than 50 Ray White offices were able to pivot to the “private auction” platform in 72 hours and deliver outstanding results for vendors and buyers looking to complete their property ambitions in these times of change.
“Many more offices executed private auctions today with digital platforms already in place.”
Ray White NSW CEO and Auctioneer Jason Andrew said everything we do is to ensure we achieve the best possible price for our vendors, whether that be via private treaty, tender sale or auctions.
“The wonderful thing about auctions is the competitive environment it generates - providing the unique experience of knowing and seeing who you are competing against,” he said.
“This platform is innovation at its finest. Ray White has always been built on innovation and being industry leaders in the auction space and this is just the latest example of how we can still deliver the high-quality service our clients deserve.
“Our number one goal in building this platform was to provide a system where we keep the emotional connection between auctioneer and bidder - while maintaining physical distancing.
“In an ever-changing world right now, it’s important our members and vendors know we’re doing all we can to stay ahead of the curve, and ensuring auctions are as competitive as ever.”
Ray White NSW Chief Auctioneer Alex Pattaro (above) today sold 804/10 Wentworth Drive, Liberty Grove, NSW today for $875,000. He sold four from seven lots himself today.
Ray White Rhodes Director and Selling Principal Jack Zhao and Sales Executive Daniel (Jia Yi) Jin said there were four registered bidders and 35+ inquiries during the campaign.
“We’d received a lot of interest before the auction because of its proximity to Rhodes Waterpoint shopping centre - you were getting a real bang for your buck here,” Mr Jin said.
“The best offer we’d formally received before the auction was $820,000 so this is a great example of how seeing an auction campaign through is beneficial in any market .
“The private/virtual auction from our standpoint was really good and really positive and it was great to have so much information in advance of auction day.
“We had actually issued eight contracts before auction day and competition was great between the three active bidders, with a local family coming out on top.”
One of the most experienced auction offices in the country, Ray White Surry Hill today reported some big sales. Directors Shaun Stoker and Ercan Ersan told sold 88 Darley Street, Newtown for $1,415,000, some $85,000 over reserve with four of the eight registered bidders active.
The online platform saw 90 bids placed between the young professional couples.
"Our auctioneer James Keenan (pictured) has called more than 10,000 auctions in his career and this was his first ever private/virtual auction - and what a way to start," Mr Stoker said.
"We had eight registered bidders online - four of whom were active - and the system faultlessly took more than 90 bids during a highly competitive auction. We'd carried out dry-runs for a few hours on Thursday and Friday to ensure our bidders and buyers had a smooth and seamless experience and that certainly paid off today.
"The property itself attracted a lot of young professionals and couples, and indeed, it was a single young male professional who was the lucky winning bidder on the day."
One of the most exciting auctions of the day was a commercial warehouse at 2 Frenchs Lane, Summer Hill, NSW which sold for $1.655 million.
Ray White Commercial Sydney City Fringe Principal Kristian Morris and Sales Associate Lachlan Palm said the final price was “hundreds of thousands” over its reserve.
There were nine registered and five of them activer who pushed the price up from it’s starting position of $1,000,000. Some 64 bids later, the property sold to an investor.
“This really was a terrific auction with five of the nine registered bidders competing to smash the reserve price for a vendor who was rightly delighted,” Mr Morris said.
“The key to this new way of auctioning working is communication, and lots of it. We took them to take the vendor through the process so they felt comfortable throughout.
“Good properties in good locations with good fundamentals will always perform well irrespective of what’s going on in the market at the time.
“The property itself was a good looking character-filled creative warehouse with very strong links to three transport options - light rail, buses and the train station.”
Further out, Ray White Unanderra Director Lindsay Begley today sold 4 Dunnart Pl, Blackbutt for $841,000.
“We had more than 60 groups through before everything changed but since this week we have only been communicating with people with an interest. We likely would have had 10-12 buyers before this week but in the end we had four genuine registrations and all of them had a bid. They were all at home and we hosted the auction in our office with the social distancing rules strictly adhered to," he said.
"There’s no questions that our office was completely safe. For us the auction process was very normal, in fact it may have been an easier start than normal as buyers were responsive and the property sold in 15 minutes.”
He said his vendor was incredibly relieved and happy. “They were surprised with the seamless result and delighted with the outcome. Auctions still bring transparency. The unsuccessful bidders all texted my associate within minutes of the conclusion to thank him for the guidance and support over the weeks.”
Ray White Victoria and Tasmania Chief Auctioneer Matt Condon said properties had sold in a number of different ways after the Government’s new restrictions this week.
“A number of agents chose to bring their auctions forward to Tuesday night with properties successfully selling under the hammer as late as 8.30pm,” Mr Condon said.
“After that, all auctions have been carried out online, with great success. It’s amazing to say how quickly the Ray White Group has adapted to the new online environment.
“Equally, buyers have also adapted well to the changes and are eager to register, bid and even buy above reserve price in the ‘new normal’ for auctions.”
Ray White Gladstone Park Director Malek Younan today sold 15 Tecoma Ct, Gladstone Park for $641,000, and Ray White Chelsea Andrew Tomlinson sold 1 Hilda Mews. Aspendale Gardens for $812,000.
Ray White New Farm Principal Haesley Cush today sold 4 Owen St Wooloowin for $950,000 with two active bidders competing during his first virtual auction which ran for a marathon one hour and 40 minutes.
“We sold to a local buyer who had actually missed out on another house during the week. I firmly believe we can sustain this style of auctioneering especially in Queensland.where no-one has to stand on a hot footpath,” Mr Cush said.
“If you are a buyer now you are completely accepting of the current environment and buying for shelter or real estate as an investment.
“COVID 19 has affected a lot of people’s jobs but not everyone, and a lot of people who have jobs are supporting our communities by buying takeaway food more than ever before. Low interest rates are still a big driver of buying intention.”
Ray White New Farm and its sister offices have seven more auctions on Wednesday night.
“Ray White has had the ability to offer online auctions for at least a decade so this is not new for us but we have all up our game in terms of virtual inspections, Google hangouts and private inspections. Even our most tech savvy buyers have also upskilled out of necessity in minutes.”
Fun fact, tonight Mr Cush and his wife Aleesha will be hosting a “virtual dinner” party at their home with two other couples on a Google Hangout.
“We’ll set the table, Aleesha will get to wear some new shoes that she bought in January, we’ll drink our own wine, we don't need a baby sitter and we'll eat food that we have chosen from local restaurants and still keep socially connected with our friends. Perfect.”
Meanwhile, Ray White Ascot Sales and Marketing Consultant Oliver Jonker today sold 45 Ormond Street, Ascot for $1,025,000 during a virtual auction held in the agency’s office.
“We had it all set up in the office and I signed all four bidders up over the phone. I was communicating over the phone and we used streaming and Bid Tracker. We actually even had a buyer register sight unseen from the ACT.”
The winning buyer who purchased made a pre-auction offer at $925,000 - increasing $100,000 to secure the property under the hammer.
“I had 30 inspections throughout the four week campaign, three written offers, and one happy vendor.”
Ray White Aspley Sales Agent Angela Duncan and Sales Consultant Stephanie Comber today sold 26 Lionel Street, Nudgee for $600,000 with seven registered bidders, mostly developers.
“We welcomed in the ‘new world’ of private auctions with success today as three of our seven registered bidders battled it out for this splitter block,” Ms Duncan said.
“It’s the first time we’ve ever carried out a virtual/private auction and the fact the number of registered bidders was around a third of the people inspected, was testament to what was available here.
“All of our bidders were on the phone and they commented on how being able to see the auctioneer online actually improved the auction experience for them.
“The property was a raw site and was purchased by a developer.”
Ray White SA Chief Auctioneer said although some auctions were cancelled, many were brought forward, and a huge amount of them were sold before restrictions began.
“South Australia is looking at a preliminary clearance rate of 61 per cent for the week which is great, given the current climate we’re in,” Mr Morris said.
“The really great news is that I’m still being booked for auctions going forward - and that is something I didn’t quite expect after the Government announcements this week.
“It looks like we’re adjusting to the ‘new normal’ and I’d just like to take a moment to wish all of our hard working agents out there, the best of luck.
Ray White Semaphore Principal Peter Kikianis and Sales Agent Sophie Pampena today sold 79 Flinders Parade, Flinders Park for $620,000 at their private auction with six registered bidders.
The starting bid was $500,000 and it was popular with young first-home buyers.
“We as agents have to be able to adapt and when the instructions came down that we were moving to private auctions - we just grasped it and ran with it,” Mr Kikianis said.
“To have six people registered to bid in the first ever auction of this nature was a triumph and two of those actively competed throughout as the price rose from $500,000 to $620,000.
“We had a good mixture of online and phone bidders and worked really well on the day - it’s certainly something we’re looking forward to embracing more in the future.
“Auctions may take a little longer but it’s all about getting the best result for our vendor and, in this case, it was a young first-home buyer who was the lucky winning bidder.”
The biggest auction sale today was a commercial opportunity in WA at 1-7/84 Fitzgerald Street, Northbridge, WA which sold for a whopping $2.2 million.
Ray White Commercial (WA) Director Stephen Harrison and Ray White City Residential (Perth) Principal Brent Compton had three registered and active bidders competing.
“The auction was originally booked for Saturday 4 April but we decided to bring it forward a week given the new restrictions that have been put in place,” Mr Harrison said.
“Then on Thursday we were forced to move the auction online and we worked tirelessly to ensure all of the interested parties were registered to bid - and we ended up with three competitors.
“We find the private auction process really easy. It’s as simple as the bidders clicking on the link and they have video and audio right there and were able to bid via the phone.”
“The buyers were father and son investors - with the son residing in Perth and the father living in Melbourne - they purchased as vacant possession,” Mr Compton said.
“I actually met them at a similar property 18 months ago and after a couple of inspections and a valuation of their own, they were in a position to bid on auction day.
“I’m a huge advocate for private auctions. They’re working a treat for us and in the grand scheme of things, we didn;t have to do a whole lot different to normal.”
