Auctions are back! Yes, there are some restrictions but nothing an agent cant handle.
Auctions are limited to ten people (plus agency staff and owners or residents), and after speaking with the team at Kay and Burton Armadale, the only foreseeable problem is ensuring public attendance does not exceed the legal limit. A big turnout of spectators will not help the industry to control the Coronavirus spread.
So you may see an auction date advertised but no time to prevent people from just showing up and exceeding the legal number of attendees.
Agents will have to heavily qualify prospective buyers before they “invite” anyone to the auction. So don’t be offended by intrusive questions like:
Are you ready to buy NOW?
Do you have your finance in place, with approval in writing if you are borrowing?
Do you have your deposit ready for auction day?
Is this price range in your budget?
If the answer is YES, the agent will reveal all the details to join the auction with up to ten other interested parties.
So while you won’t see a big crowd on a sunny day, you can be reasonably sure that those present are probably there to transact.
Need some buying or bidding advice? Call us at ela Property Advocates. Guy Angwin 0412 022 998 OR Geoff Briscoe 0419740351
With all the talk of what the market will do and government COVID 19 actions, we thought this week we would digress. While doing some research for a client, we discovered this concise vision for Melbourne 2050 – Population 8 million!
Ok yes, is published by the Victorian State Government, but it’s a terrific summary, informative and even non-political. It’s an easy read and well worth it!
Read how Melbourne will retain its Worlds Most Liveable City status.
Transactions and Negotiations……. The team of Carla Fetter and David Sciola at Jellis Craig Armadale, one of Melbourne’s top agents, have adapted to the new conditions rapidly and have sold 16 houses in 31 days, $30 million sales at an average of $1.87 million per home. This agent’s success demonstrates that there are transactions taking place. Congratulations!
And that result was achieved without any real auction activity – its a combination of pre-market, off-market and listings. Five properties that sold never even made it to market according to David Sciola. And the REIV quoted only 75 auctions last weekend versus 554 for the same time last year!
While auctions give you instant real-time market validation, for now, they are “on hold”. The private sale market has taken over and requires insights, information, research, contacts, knowledge and negotiation.
A client asked today “is this the right time to buy?” and our answer was perhaps a little predictable – have you found the right property that meets your needs now? If you have, like we said last week, buy it!
Call or email us if you have any questions or want to discuss how TODAY’s market works.
Many clients ask now “We are ready to buy, should we with COVID 19 and everything else going on?” If its the right property YES!! You should certainly consider it!
Why? Well, stock levels are down from last year, which was down 30% on the year before that. Add in our population growth, “most liveable city” status, immigration and a backlog of demand the right property is taking longer to find.
If you have a house, you should consider selling first. You need to be prepared and have done all of your research and due diligence. In this market, it’s a considerable advantage to be cashed up, or funding in place (in writing) this adds strength to any offer you make as it’s an unconditional offer. More than any time in our history, we are competing in a limited auction zone.
Many properties don’t even make the market and vendors are nervous about signing off on conditional contracts. If you miss the property you want you’re going to need a lot of luck and patience because the goodies are becoming more and more difficult to find. Being ready/cashed up in today’s tricky market gives you greater leverage when negotiating for that just perfect property.
Talk to us, and we will take you through the steps to success.
There can be long lead times in buying and quality property and preparation for a successful transaction is everything. Every market cycle requires a different approach – right now, we are in a “wait and see” cycle.
But people still have to transact for a whole lot of reasons, under regular times that might be interstate or overseas relocations, upsizers or downsizers, financial issues or divorce.
Our advice right now is – “Don’t fall for buying a substandard property, do your preparation, be ready for when an opportunity presents itself”. There is never a time to forget the buying fundamentals of buying a quality property – do your due diligence.
The preparation you do now means you can act quickly when that right property comes along. If you want to chat about what makes a quality property and what due diligence you need to undertake before signing a contact – don’t hesitate to call us.
With only a 1,000 Melbourne auctions last month, stock levels are at an all-time low, and it is unlikely there will be any change in the short term. The Victorian Government announced last week that private inspections were over for occupied properties and the search got a whole lot harder.
But yesterday the State Government acknowledged they couldn’t leave hundreds of people “stranded”, unable to look at houses and therefore unable to buy homes. Private inspections were again re-opened, and common sense prevailed. After all, who would commit to such a vitally important purchase sight unseen?
Sellers have “put the cue in the rack”, they won’t spend money on advertising/marketing and playing a waiting game. HOWEVER, there are still a large number of people who NEED to sell due to circumstances, maybe divorce, downsizing or upsizing.
The market is still functioning; agents; buyers and sellers are adapting to a very different market. There are buyers and sellers who NEED to transact now, and there are some great opportunities for both buyers and sellers in this turbulent time.
As advocates, we help buyers and vendors alike manage today’s “different” sale/purchase process. Call us for a chat anytime.
As agents, buyers and sellers all adapt to the new conditions; one thing has become clear….for now. Auctions are out and replaced by Expressions of Interest (EOI) and private sales.
The auctions you see now all were locked in pre-pandemic. Even so, the REIV still report an 89% clearance rate; but with a 77% drop in auctions from the same time last year!
The more important number is 353 WITHDRAWN before the scheduled public auction – this screams a vendor message “we are not selling until we know what’s gonna happen”! Sellers won’t list or spend money on marketing until they know more. Post-Easter autumn auctions will gradually build up again, but not right now.
Counter to that is interest rates are at a lifetime low, demand is still there for now and quality properties are even harder to find than before. And a big plus; peoples genuine needs (not wants) for housing has been building up for months.
So for now? Its EOI’s, private sales,off-market and pre-market sales if you need a property. Buyers advocates play a more prominent role than ever, finding off-market, pre-market homes AND negotiating transactions on listed private sales properties.
Call us for a chat and discuss your many opportunistic options for buying or selling now.
Because of the absolute need for people to buy and sell houses, the real estate industry had to adapt fast to the new Covid-19 restrictions.
We attended our first on-line auction – a simple process using the conferencing software ZOOM – and auctioneerJohn Bongiorno and his team at Marshall White conducted the auction for 4 Erindale Avenue, Ripponlea.
Like an on-site auction, you can see everyone attending, know who is bidding, and of course, all the legal auction requirements still apply.
So just a handful of days after the Australian Government banned all on-site auctions the first on-line auctions got underway on Saturday, March 28th 2020.
How did Ripponlea go? Well, it passed in, and the last bidder bought after post-auction negotiations.
By the way, although the auction level was incredibly low as the industry quickly adapts, the clearance rate was 90% (Souce REIV) on 363 auctions, about a third of the last year’s levels.
So what’s gonna happen? A friend often asks me this general question. That question is so relevant to real estate right now so, barring a complete lockdown of all activities, here’s “what is happening today” – which may be different tomorrow next week.
Consumer Affairs Victoria has confirmed that private inspections by appointment can continue. Private meaning one on one with the agent. And auctions via online methods can continue.
REIV President Leah Calnan said “The REIV has been trialling online auction platforms and there is no doubt electronic auctions will come into play shortly. Many agencies have already invested in online platforms for property auctions and have been trialling them in recent months, and houses will continue to be sold in Victoria. The Victorian Real Estate Sector is prepared to do its part to help fight Covid-19. The Victorian Real Estate sector is a flexible, innovative, and resourceful industry capable of dealing with any problem.”
We think this is spot on.
“Local agents are turning to technology to satisfy the high demand in Victorian real estate, with virtual reality inspections, and transactions conducted over the phone and electronic document signing over the internet becoming commonplace. People still need to buy and sell homes, and the industry will quickly adapt to new technology and private viewings of properties.”
If you are thinking about buying or selling property, call us for a chat.
In these incredibly trying times, everything that was normal no longer is. Take the laws of supply and demand and how that plays out in the property market right now.
Supply – Good stock is hard to find, and it won’t improve for a while.
Demand – demand is still high for A-grade properties; nothing has altered. And we think more and more people with money will want to live in Australia.
Costs of funds – certainly the lowest in our lifetime, and liquidity is not an issue.
Sentiment – now this is the wildcard, the intangible that you can’t measure, touch or feel, it’s just there. Right now, the Covid-19 virus has everyone worried, altering all the norms.
So, what to do now?
If you are buying and selling at the same time, you may well be better off. If you are upsizing, your changeover may be less if both properties fall at the same %. And remember, the banks want your business. A-grade properties always do better than B or C grade, and with all the above in play, there will be new opportunities, and we are here to help you capitalize on them. So if you have to, need to or want to buy (or sell), give us a call and we will meet (via Skype for now) and explain A Grade properties and how to find find the right one.
Guy Angwin: 0419 022 998 OR Geoff Briscoe: 0419 740 351