Wednesday 03 Jun 2015
In the current market when is the right time to choose a private treaty campaign over auction? That’s actually a pretty easy question to answer. In my view it would be ‘very, very rarely’.
When the market is as hot as it obviously is right now auction is undeniably the best platform to allow demand to set the sale price, and that price might end up being well above everybody’s expectation.
Take the auction on the weekend of a one-bedroom apartment in Macquarie Street. Morton Agent Ettiene West worked hard over the four week campaign to introduce the property to potential buyers and prior to auction day knew there was keen interest in the property.
The auction opened with a bid of $1.8 million and eventually sold under the hammer for $2 million. That’s well above the anticipated sale price and in fact set a new record of a one-bedroom apartment in the area.
Now if an above-expectation result prompts you to claim ‘underquoting’ this sale is the perfect property to dispel that myth.
The fact is the sale set a new record. That’s a result impossible to predict but outstanding to achieve.
Indeed Ettiene was responsible for securing the previous record sale back in May last year so he knew more than anyone the potential of the property to attract attention. However the price last year was extraordinary and so it would have been reckless to set that level of expectation.
Auction drove the record result on the weekend. It set a deadline for decision and a platform for competition. It won’t always deliver a record but it will certainly deliver the best possible price for most residential property.