WHITSUNDAY E-NEWS REAL ESTATE: 2nd week of Jan. 2022

Hi, Annette Neil from PRD Whitsunday.

This week I wanted to chat about auctions and the re-emergence of auctions here in the Whitsundays.

It's not something we've seen a lot of since before the Global Financial Crisis. It used to be quite large back then through the GFC period around 2008 through to maybe about last year auctions weren't as common here in the Whitsundays. There were much more private treaty sales happening, and it also has tended to be quite a trend for Queensland that we don't have a large volume of auctions.

That has changed in the last year, and certainly here on the ground in the Whitsundays. Auctions are becoming much more common.
It can be an uncertain time for buyers going into an auction. You're flying a little bit blind here in Queensland. We are not allowed by law to provide a price guide to buyers for the property, which I know in southern states, you do get a price guide.

I guess you've got a bit of a window of understanding what the property may be worth or what it may fetch on auction day. We have seen a lot of that in the last year is multiple offer scenarios.

It could be a private treaty sale where you might have three or four offers, and we're finding that buyers are getting frustrated because they feel like that's what they want to pay and that they're being played off against each other.

You're also unsure if the agent is telling you the truth or not. There's that tiny seed of doubt in the back of your mind. A fantastic thing about an auction is it is entirely transparent.

All of that negotiating is done right in front of you by bidding. This way, you know precisely who else is interested in the property and what their bids are.

It can be a positive for a buyer going through the auction process. Now, remember you can ask to have some conditions as part of the bidding process, ideally not because it does put you a little bit on the backflip, but you could have a longer settlement time frame, etc.

Have a good chat with the agent prior. Then, if it is a hot property with lots of interest, a seller goes to the market to get an unconditional sale.
See how you go with those tips, and we'll see you at an auction this year.
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