Real estate agents are preparing for record numbers of auctions in the City of Logan over coming weekends.
About a month ago, agents said they doubted the Brisbane city auction trend would extend to Logan, but in a short time, people are lining up to hear the bang of the gavel and the skill of the auctioneer in action.
Ray White Marsden is one agency embracing auctions. Weekend before last, all properties under auction were sold.
In quiet markets, auctions are considered high risk because they often eliminate first-home buyers, or those who are unable to obtain unconditional finance.
However, the current buoyant markets are conducive to the concept.
Houses up for auction will usually enter a 4-6-week sales campaign, geared to generate interest from a number of buyers who they determine the final price in a bidding contest.
But many houses listed for auction aren’t being sold under the hammer.
Rather, buyers are offering attractive offers before the auction, some of them with conditions such as being subject to finance or being able to sell their own property within a certain timeframe.
Ray White Marsden principal Avi Khan said auctions were a transparent process.
“All it needed was someone to come along and change the game,” he said.
“In current conditions, some agents are playing ‘God’ by trying to price houses in a market that’s changing every day.”
Real Property Vibe principal Laurell Veivers agreed that it was difficult to price properties, which meant auctions were a better way to sell.
“It’s all about the fear of missing out,” Ms Veivers said.
“People are not game to put a price on their property because they want to get more. They’re then getting offers which they feel are too good to refuse, so properties are being sold prior to auction.
“The risk is with the seller. If there are a number of interested buyers, auctions are great. There is always a risk of course that only one interested party turns up.”
Ms Veivers said the auction process was a faster and cleaner way to sell property.
“We all know the market goes in cycles, so it won’t stay like this forever which means some sellers are seeing an opportunity right now,” she said.
Proof has been in the results, many prices selling 10%-20% above their reserve price.
