Whether you’re selling an investment property, your family home, or a newly built property, there’s no doubt that the question of whether to go to auction or not can be a daunting one for all sellers. Ray White Maroochydore real estate agent Sarah-Louise Anderson understands these feelings for her clients, however firmly believes that auctions are the way to go, with her recent sale of Maroochydore property at 15/28 Dalton Drive a testament to the process.
With 35 enquiries and 23 inspections, Sarah-Lousie has no trouble explaining why this particular piece of Sunshine Coast real estate was a popular one.
“The majority of interest came from investors and first home buyers, because of the lower price. Its popularity was also due to its ease of maintenance and low body corporate fees. With a high rental appraisal, the Dalton Drive townhouses are very easy to get tenanted, meaning that the property was highly attractive to investors seeking low maintenance, minimal outgoing costs, and consistent tenancy.” Sarah-Louise says.
In fact, unit 15 wasn’t the only townhouse up for sale at 28 Dalton Drive, with another similar unit selling within the complex at the same time. Even though this ‘competing’ unit went under contract a mere half hour after its first inspection, Sarah-Louise and her sellers knew that holding out until the auction would be their best strategy to get the best price. And their strategy worked! A newer and perhaps more desirable unit, the rival unit only sold for $521K conditional, staying unsold and under contract for 3.5 weeks. Meanwhile Sarah-Louise’s unit 15 sold for $9K higher at $530K and was a cash unconditional sale!
‘We put the property on the market, and 2 days later another unit in the complex went on the market as well! The other unit was in better condition as it hadn’t been a rental, whereas unit 15 has been a rental it’s whole life. The difference between the two was pure competition. For our one it went to auction so there were people competing against each other. Ultimately that’s what resulted in an extra $9K. For the sake of 3 extra open homes and running an auction, you are still achieving more for an inferior property.” Sarah-Louise says.
The results speak for themselves for the sellers, but as an agent, is 4 weeks of open homes and the whole auction process worthwhile for the sake of $9K? “Absolutely!” says Sarah-Louise.
“Of course the auction process is 3 or 4 x the work for an agent, however to have an inferior unit sell for $9K more, definitely makes it worth it! This also resulted in us selling $105K over reserve, a substantially higher number than the owners expected and wanted! Having the 4 open homes and auction process was really important for this. The current market is moving incredibly fast! For property to sell within half an hour of the first open home is ridiculous! However, it doesn’t necessarily mean that you got the best price for the property.” Sarah-Louise says.
So what is it about auctions that yield such great results? Well, it all comes down to two key components in sales – competition and urgency!
“The competitive nature of the auction, with cash unconditional contracts, means that people aren’t tied up with finance or building and pest clauses. I don’t think it would have mattered if we had the auction on-site or online, it’s more so having that cash unconditional and competitive nature that resulted in a high price.” Sarah-Louise says.
And the proof is in the pudding for this unit. A mere 12 months ago the unit was originally listed with agent Sarah-Louise, however at that time listed for a sale price, not up for auction.
“We had this property on the market 12 months ago for a price and it ended up going under contract 3 times around $390K. All 3 contracts fell over due to conditions. The owners ultimately decided to take it off the market, give it 12 months, and then put it back on the market this year, which is what we did. Going to auction with cash, unconditional, resulted in a sale of $530K which is $120K more than last year’s conditional contracts – a reflection of the competitiveness of the Sunshine Coast property market.” Sarah-Louise says.
An outstanding outcome for all! As for the buyers? They’re thrilled to be achieving their dreams as first home owners of this well positioned Sunshine Coast property!
Looking for a Sunshine Coast real estate agent who sells in a strategic way and goes the extra mile? Contact Sarah-Louise Anderson to have a chat.
Written by Lauren Smith – Smith Madden Creative Agency
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