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We sat down with our Chairmans Elite agent Calvin Huang from Ray White Glen Waverley, who is in the top 1% of performers in the Ray White Group. He talks us through how his business is holding strong under the pressure of the Melbourne lockdown, and why he still loves auctions.
Why do you recommend auctioning to your clients?
There are a few reasons why I recommend auctions to my clients. Firstly, it can ultimately achieve a better result with competition and secondly, with a set date and time the property is to be auctioned, this creates a sense of urgency amongst buyers. The buyers who are interested must be there on the day or put forward an offer prior to this date. Finally, it generates an unconditional sale (no finance/building/pest) and no cooling off period (if sold on auction day or 3 business days before or after).
What are the steps you have taken to adapt your auctions during the pandemic?
The biggest change has been converting our auctions to the online auction space. I have found that towards the tail end of the auction (as we’re about to sell the property) we need to drag out the 3 calls prior to selling the home. This gives me time for me and my team to contact buyers and give them a final push rather than knocking down the hammer too quickly when there potentially may be more on the table for the owner.
Why is the perfect type of property to take to auction?
The perfect property is the same for a private sale. One where there is plenty of interest to drive up the price! Whether that be an ideal family home ready to move in to or a prime block of land ready for development.
What changes have you noticed in sellers / buyers over the last couple of months?
Sellers have really for the first time been concerned about buyers coming through their home with covid-19. With so much uncertainty, buyers have been making decisions based on confidence in the market which is why I think auctions are so important. Buyers are wary of paying too much in a private negotiation but in an auction they can see their direct competition (on the street or online) and know there is interest in the property. This is especially true in my market where most properties are ordinarily auctioned.
What methods of marketing are you finding effective at the moment?
Walk-through videos are very effective at the moment. Buyers can have a really detailed look at the home before even booking in an inspection to see if the home will really suit their needs. This reduces inspections to those who are genuinely interested and reduces the risks for owners with less people through the property.
Do you have an auction story from the thick of the COVID-19 period that stands out?
I had a sale at 2/1 Cornish Road which was expected to go for Auction on the 15th of August but with stage 4 lockdown in place from the August 2nd in Victoria we decided to move the Auction forward to the 8th. Rather than selling the home in a private sale, we were confident in basically halving the Auction campaign and moving the Auction date forward as we had over 50 private viewings in the first 2 weeks of the campaign. On the day, with the Auctioneer calling the Auction at home we had 16 registered bidders and ended up selling $77,000 above reserve!
What is your outlook on the real estate market in the Glen Waverley region over the next couple of months?
I think there is going to be a large amount of properties coming to the market, with basically nothing coming up in the 6 weeks of lockdown combined with the traditional busy spring period. Prices should be still quite good with the pent up demand during this lockdown.
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Calvin Huang
Ray White Glen Waverley
