Three houses sold and two houses passed in at the grand finale auctions causing disappointment and a big question mark over what happens next, reports Domain.
Failing to sell at auction can be a bitter pill to swallow.
But it can also be quite common.
Brissie buyers have historically preferred private treaty sales to auctions, whereas Sydney and Melbourne buyers are more accustomed to buying under the hammer.
Clearance rates – the percentage of homes that sell at auction compared to those that don’t – can fluctuate quite dramatically from week to week.
In the last week of October Brisbane’s clearance rate was just 49 per cent, reports Domain.
This means that around half of all sellers failed to secure high enough bids at auction to sell their homes. They know just how The Block contestants are feeling.
A property “passes in” when the bidding at an auction fails to reach the reserve price (the price at which the sellers will sell the property).
When this happens, negotiations will typically kick off with the highest bidder to see if a sale can be agreed.
Failing that, sellers can decide to take the property off the market or consider a different sales strategy, such as listing the home for sale by private treaty.
Alternative sales strategies can open up the market to a broader pool of buyers. Not everyone is able to buy under auction conditions. They may wish to negotiate settlement terms that are different to those in the auction contract.
Buyers may also be put off by the pressure of bidding at auction, and may prefer a sales contract that allows them to make the sale conditional upon their finance approval and building and pest inspections.
If you’re thinking of selling talk to local agents to make sure your sales strategy is tailored to suit your unique property.
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