Auction Tales May 26 2025
TALES FROM AN AUCTION
Auction Tales May 26 2025, moving out of Bundoora last weekend to Pascoe Vale, Fawkner and Reservoir.
Two auctions that fitted my diary, one fitted my clients criteria. Sometimes its worth checking out homes that don’t meet the criteria on paper. The rooms may be big enough to do more with, there may be an outbuilding that could be a home office, the renovation that looks turnkey can be a mess. It can surprise me that sometimes extras like outbuildings are not mentioned on marketing.
McFadzean and Cuthbert were my auctions of choice. Both in good areas of low development, yes, there are restrictions in some areas as the council tried to preserve neighbourhood character. It may change over time but both streets lacked the high rises or multi level apartments that I am seeing almost everywhere. It was a lovely change.
Home 1 was an older unit, in need of TLC. Three bedrooms, small yard, double garage, the back of only two on the block. Two hot bidders, the successful bidder secured the property with an offer just over the top end of the range at $737,000.
The agents price guide was $680-730, it was on the market at $722,000 and sold for $737,000
Home 2 was a gorgeous two bedroom clinker brick. Not much of a crowd except for neighbours, two bidders, one who maxxed out at $685,000
The agents price guide was $650-715, an opening bid of 650 by the auctioneer, a quick flurry of $5000 increments, the reserve wasnt met by the top bid of $690,000 and it was passed in.
It sold after the auction for $712,500.
AUCTION TALES MAY 26 TIP – BE WARY
- Do your research.
- Are the homes used on the price guide truly comparable?
- When did they sell?
One of the homes I viewed on the weekend, prepared their price guide in March (auctioned 24/5), the homes compared were sold as far back as September 2024. A different market.Different homes altogether.
AUCTIONS, LAST WEEK OF MAY 2025
More auctions being reported with a clearance rate holding fairly steady.
There were 730 auctions reported to the REIV from the weekend, 603 sold, 439 on the day, 163 prior to auction, 1 after auction, 127 passed in, 15 withdrawn and 21 postponed .
Generally the numbers are going up: sold before increasing almost double from the previous week. Is it because buyers don’t want to wait, don’t want to compete and sellers are happy to consider the bird in the hand rather than test their price at auction?
NOT SOLD, WHAT HAPPENS NEXT?
Auctions have a language all of their own. In this Auction Tale we talk of what happens when the hammer doesn’t fall at the auction, nobody secures the winning bid. What happens next?
Understanding the process is important. Educating yourself as a buyer may make the difference between you buying the home or walking away disappointed.
If a home is ‘PASSED IN’ this means that the home hasn’t reached the sellers Reserve price. Not the top end of the price range marketed but the price set by the seller before the auction gets underway.
The auctioneer will declare that if you are the highest bidder that you get to negotiate with the seller. If you are waiting to get the chance to negotiate post auction then you take the risk that the seller negotiates a price with the highest bidder and you don’t get a look in. The system rewards the highest bidder, not the person who sits on their hands.
If negotiations fall through, then you may get a shot to negotiate. You must let the agent know, they are not mind readers. Keep communicating. If you have to make the sale subject to a special condition then let the agent know. Be confident about the price you want to offer.
If the agent knows your offer is higher then they may let the seller know. I say ‘may’ because auctions are unconditional and if there is any chance that your special condition may not go through then you may be a risk the agent AND the seller doesn’t want to take
As always, if you need some guidance then please reach out and let’s chat using a SOUNDING BOARD session.
