Ewan's Blog

Who am I kidding?

Wednesday 13 Dec 2017

There is no hiding the fact that auction clearance rates have declined over recent weeks. So you may wonder who am I kidding when I say our team still have buyers, are still recommending auction campaigns, and are still delivering quality sales results? I’m not kidding anyone.  Sales are still taking place. I acknowledge clearance rates are lower but here’s the deal…

First of all let me set one thing straight. I’m not trying to pretend there hasn’t been a slowdown. I believe artificially inflating the market is the worst thing a real estate professional can do. It’s dangerous and downright stupid because setting unrealistic expectations for vendors is setting yourself up to fail. 

But automatically assuming a slowdown in the auction clearance rate is the end of the market is equally foolhardy.

It is very important to acknowledge the change in buyer behaviour but it is important to remember that buyers are still behaving.  And they’re still buying.

I believe auction continues to be the best option for most properties across the Sydney residential property market.  In the current market it is important to set a clearly defined timeframe for buyers so they can’t dither forever.  Buyers are taking longer to make decisions. They are more inclined to want to ‘wait and see’ so an auction campaign creates a sense of urgency. 

Of course not every property taken to auction will sell under that hammer but that doesn’t mean the campaign has failed.  It is far from the end of the line.  Our team use the intensity of the auction campaign to identify potential interested parties so even if they can’t get a party over the line on the day the door to negotiate a deal is wide open.  Their work will continue until the deal is done.

I’m not kidding. There are deals being done.