How to decide whether or not to auction your home

first_imgHome like 75 Charlotte Street, Paddington are prime auction prospects.It’s stimulated so much demand they’ve seen offers prior to the event.The couple felt their property had the right elements including a big block of land, bespoke renovation, great outlook and easy access to lifestyle facilities.“It’s a corner block and it’s got some history to it too,” Mr English said.He thought the ideal buyer would be a professional couple with kids, which is a group generally comfortable with buying at auction.“It’s a clean process too,” Mr English said.“You can do it quickly and you’ve got a time frame where you can open the house for half an hour for four Saturdays and then away you go. We believe it’s the best way to get our result.”Follow Kieran Clair on Twitter at @kieranclair Lorraine Cherry and John English, believed an auction campaign would help them achieve the best price for their home. Photo: AAP Image/Steve PohlnerBRISBANE auctions have achieved monster sale prices for the right kind of property, but how can you tell if yours is one bound to set bidders’ hearts alight?Our city hasn’t traditionally embraced selling under the hammer, although a recent rise in CoreLogic’s reported Brisbane auction clearance rate to a 2017 high of 49.6 per cent suggests we are becoming more comfortable.CoreLogic auction commentator, Kevin Brogan, said our city’s agents use auctions as the exception not the norm, particularly compared to Sydney and Melbourne.“Your agents are a little bit more discerning about what they take to auction,” Mr Brogan said. “The types of property that do go to auction are those that have some sort of characteristic or proven market demand that’s going to create the energy of interest to produce the best outcome.” He said auctions help unique properties test the market and achieve a result.Urban Property Agents principal Daniel Argent said a blend of elements created outstanding auction results — starting with local market conditions where there’s high demand and low supply.“You’re going to get multiple offers on the property and, therefore, taking it to auction is the best way of putting those buyers in competition with each other,” he said.Mr Argent said points of difference such as great position, large block of land, city views or development potential created auction frenzy.“If you’re in a really prime location where every man and his dog want to be, it makes a lot of sense to take it to auction. You’re going to auction not to get one person to try to buy it, but to actually try and get multiple people wanting to buy the house.”Mr Argent said sometimes a style of house will hit a market sweet spot. For example, high quality family homes in our inner suburbs are in short supply, which helped drive an auction buzz.He said higher priced property can also potentially achieve a greater premium at a competitive auction, although the upper limit must be carefully assessed.“Once you start getting up over a million dollars, a house might be worth $100,000 difference from one buyer to the next buyer, but once they start getting over $2 million, that starts to pull back because there are not hundreds of buyers above $2 million,” he said.More from newsParks and wildlife the new lust-haves post coronavirus23 hours agoNoosa’s best beachfront penthouse is about to hit the market23 hours agoMr Argent said inner city suburbs like Paddington, New Farm, Bulimba and Hawthorne tended to do better at auction.“Inner city suburb buyers are more comfortable with auctions because in those areas they are second, third or fourth-time buyers. You also need to be able to bid cash unconditionally and many first time buyers won’t have that sort of pulling power with the banks yet.”John English and Lorraine Cherry planned to auction their home at 75 Charlotte Street, Paddington.last_img

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