Residential
Explore
We sat down with one of our most awarded and Elite agents from South Australia; Stefan Siciliano from Ray White Norwood. He discussed exactly why social proof is required to achieve the best possible price for a vendor.
Why do you recommend auctioning to your clients?
In South Australia, clearance rates on auction day and at day 30, 60 and 90 are far better than private treaty. We are able to compress the time it takes to sell a home and make sure we get the best possible price through competition. The unconditional contract is extremely powerful as well as there is no cooling off period, quicker settlement and better deposits.
What are the steps you have taken to adapt your auctions during the pandemic?
We worked tirelessly with John Morris during lockdown to create an amazing online platform and put in extra hours of work to educate the buyers on the process. We also made more frequent contact with buyers to ensure they were comfortable and able to bid with confidence.
Why is the perfect type of property to take to auction?
I believe any property can be taken to auction, and I think it's the agent's job to make sure the right work is being done to get buyers bidding on the day. In saying this, properties that are more unique, in a superior location or of irreplaceable character always have more demand.
What changes have you noticed in sellers/buyers over the last couple of months?
Sellers have been a bit slower to act. Many are unsure about the current environment and want to see more social proof that the market is still positive before making big decisions. We are having to show them the facts to explain that we are experiencing lower supply levels and increased demand which is resulting in better average days on market for us.
Buyers are competing and not worrying as much; they are continuously telling us that there aren't as many properties around and they are eager to move when suitable properties are listed. Many buyers have said that open inspections seem busier and there is more competition than usual. Buyers seem prepared to do whatever it takes to secure the right home. Interest rates are at an all time low and COVID has not affected our property market in SA. The construction grant has boosted vacant land sales; we basically sold every block of land we had on the market when the construction grant was announced.
Do you have an auction story from the thick of the COVID-10 period that stands out?
33 Rose St, Prospect SA: My interstate vendor wanted to cancel her sales agreement and rent the property after the restrictions were announced in SA in March and April (this was after we spent lots of time re-painting, re-landscaping, professionally cleaning and staging). The vendor ended up taking our advice on board to stick to the process, had over 30 private viewings within the first week on the market and sold the property under the hammer to a buyer who only inspected the property once in the first 7 days of it being listed online.
What is your outlook on the real estate market in the Norwood region over the next couple of months?
I am confident about the SA property market because it is known for being a very secure marketplace and I think this is evident right now - sales are still strong. Luckily, our market has not been impacted and we are seeing lots of activity. I am more interested to see what happens towards the very end of the year and early next year. I think the end of government support and deferred loan repayments for people might have an effect in 6 to 12 months time. I think this could create an oversupply on the market that would decrease the current buyer demand and increase days on market which may mean lower sale prices for sellers.
Why is it more important than ever for sellers to choose auction as their method of sale?
There is nothing better than an unconditional contract in an uncertain time. Sellers must take advantage of the lower stock levels and buyer demand that we are experiencing right now. They get the most out of their marketing investment because we speak to and meet more buyers and work towards selling on a set end date. Ray White's clearance rates are fantastic in SA and the competition of an auction is vital to secure the best price. People are prepared to pay more for property that they know other people want too.
Stefan Siciliano
Ray White Norwood
0403 171 489
