Why sell under the hammer?

IT may be mid-winter but that has done nothing to cool the prices vendors are achieving by making the decision to go all the way to auction day.

Nationally throughout June, those that held off and sold their property under the hammer on average achieved 12.82 per cent more than the highest offer prior. This is consistent with year to date figures that say vendors who sell by auction through Ray White have on average made 12.17 per cent more than what they would have if they accepted a prior offer.In June, Adelaide came in with the largest gap between sale price and highest offer with 14.84 per cent while Melbourne followed, recording a 13.40 per cent price gap on average. While Brisbane and Sydney achieved 13.36 per cent and 13.02 per cent respectively.Ray White regional and rural auctions sold on average 10.43 per cent more than the highest offer prior while the Gold Coast market recorded 12.20 per cent more.However, since the beginning of the month more than 21 per cent of all Ray White auctions have sold prior. Ray White New South Wales chief auctioneer Alex Pattaro said those selling on auction day can expect higher returns on average because of increased competition.

“Buyers want to offer prior simply because they don’t want competition. They are trying to outsmart agents by offering strong offers beforehand that are above the price guide,” Mr Pattaro said.

“However, in a marketplace where so many buyers are keeping their cards close to their chest, I would ask - are you prepared to take the risk? Could you achieve more at auction?

“At auctions across the country we are seeing buyers bid above their feedback level once they see competition from fellow buyers.”

In Sydney, 201 Denison St, Queens Park is so sought after, it’s even attracting buyers from the same street eager to lock down a second property in the popular suburb. But Ray White Taylor and Partners director Walter Burfitt-Williams and agent Annie Hodgson said interested buyers have been coming from all over Sydney to snap up the two bedroom property.“Many of the similar neighbouring homes have been raised and renovated which shows there is plenty of scope to add value and young professionals wanting to live in a lifestyle area can see this potential,” they said.In Wahroonga, a family home of almost 40 years is about to get new owners this weekend after a morning auction through Ray White Cherrybrook director Dion Verzeletti. No 65 Unwin Road (pictured above) has been in huge demand with families who are eager to snap up a home that backs onto the sought after St Leo’s Catholic College campus and space in the backyard for the kids.Ray White Touma Group principal Charles Touma said 20/500 Crown St, Surry Hills (pictured at top) has been attracting professional couples, along with downsizers.“This campaign has completely blown us away. We’ve had 200 groups inspect the apartment since the first open home,” Mr Touma said.“It’s one of those units that ticks all the boxes, especially for downsizers who value design and location.”

Two minutes back from the Brisbane River is one of the city’s worst houses in one of the best suburbs. Selling agents of 101 Philip St, Hawthorne (pictured above), Brandon Wortley and Daniel Lazzaroni from Ray White Bulimba said while the current house is in an uninhabitable state, there is plenty of development potential.“There has not been a blank canvas on a big block with views in this area offered to the market in a long time and with a high level of demand for big houses and big blocks, we have seen over 100 enquiries from owner occupiers and developers alike,” Mr Wortley said.The property is situated on a hill with city views and provides an opportunity to create one of the finest homes the area has to offer.The Bulimba agents have received interest from a range of buyers from locals, interstate as well as returning internationals looking to 'boomerang' back to Brisbane.On Saturday, the auction of 3 Sedgley St, Alderley is expected to show the strength of the market as it goes under the hammer after only a year with the current vendors, who are planning to upsize. Selling agent Jessie Hall of Ray White Wilston sold the property to the family last year at auction and since then they’ve only added a new fence and light fixtures.“We have a lot of first home buyers eager to get into the market and they are stretching their budgets more than they would have this time last year,” Ms Hall said.“We’ve received a lot of interest so it will be interesting to see what difference a year has made to the market.”

In Melbourne, buyers and sellers alike are shaking off the lockdown blues as the city goes into its second weekend being back to on-site auctions.

Sylvia and Dino Giordani have breathed new life into 16B Wallace Cres, Beaumaris for late parachuting buddy Michael Gough. The owner of the Beaumaris home left the property to his friends who decided to renovate the house which had seen better days.

The result is a simple but well finished renovation that Ray White Cheltenham director Kevin Chokshi said has been a big hit with buyers.

“We’ve had great interest in the house. Young couples want to get into the school zone while downsizers are loving the renovations,” Mr Chokshi said, who is also expecting another big auction later in the afternoon at 4A Alice St, Cheltenham.

“The winter market is yet to cool down for us, we’re still seeing plenty of buyer interest and it’s not looking like it’s going to slow down anytime soon."

On the other side of Melbourne in Roxburgh Park, first home buyers, young couples and possibly even an investor are planning to throw their hat into the ring for 10 Satterly Way (pictured above).

“The property has something for everyone and we are hearing a lot of buyers saying they love the low maintenance style, size and great location,” Ray White Craigieburn agent and auctioneer Trish Orrico said.

In Adelaide, weekday auctions are gaining traction with 25 per cent of the city’s auctions scheduled during the week. However, Saturday auctions are not going anywhere - especially for Ray White Mawson Lakes agent Lukasz Jaworek.

Mr Jaworek is confident 40 Talbot Rd, Croydon Park (pictured above) is going to make for a Saturday spectacle after 200 people attended inspections over the course of the campaign. The Mawson Lakes agent said he has had almost every single buyer type walk through the door.

“We’ve had investors from Melbourne and Sydney, first home buyers and foreign investors to name a few. The amount of different clients who have expressed interest is just extraordinary,” Mr Jaworek said.

“This is definitely one to watch to see the real strength of the winter market.”

Meanwhile, Ray White Glenelg agent Samuel Paton has had developers, investors and young couples all vying for 13 George, St Marion. He said the land size and location is what has attracted almost 50 buyers to the open homes.