Post to SinFongChanRE.wix on 17/12/2017 at 10:26 AM
Commenting on “Auction clearance rate”
Is there any message about lower auction clearance rate?
Clearance rate drop indicates there are more pass-in. The reason for pass-in is because the price is too high or unrealistic. That only implies prices have to drop.
Those houses that sold at auction could have fetched much higher prices during better time.
I am still searching for a suitable agent to sell a client’s property over $2m more for redevelopment. It does have a house on the block, requiring Tender-Loving-Care (TLC).
Compared with a few months ago, the price has probably dropped by more than $200,000. Statistically, after analysing more than 20 sold properties in the same area, the average per m2 price has dropped since July 2017.
A reader Anne messaged a few days ago and shared the same observation that sites suitable for redevelopment are not selling well. My response is that there is not enough margin for developers especially the small timers to make a reasonable profit.
It is better for buyers to buy off market or private sale rather than at auction. Unfortunately, some properties cannot go for private sale and must be auctioned. You do need to know what is the appropriate breakeven and stick within your budget.
Never go to an auction or talk with an agent thinking / bidding as though you are a seller. By doing so, you only believe the house should be sold at higher price.
Thank you for reading.
Commenting on “Auction clearance rate”
Is there any message about lower auction clearance rate?
Clearance rate drop indicates there are more pass-in. The reason for pass-in is because the price is too high or unrealistic. That only implies prices have to drop.
Those houses that sold at auction could have fetched much higher prices during better time.
I am still searching for a suitable agent to sell a client’s property over $2m more for redevelopment. It does have a house on the block, requiring Tender-Loving-Care (TLC).
Compared with a few months ago, the price has probably dropped by more than $200,000. Statistically, after analysing more than 20 sold properties in the same area, the average per m2 price has dropped since July 2017.
A reader Anne messaged a few days ago and shared the same observation that sites suitable for redevelopment are not selling well. My response is that there is not enough margin for developers especially the small timers to make a reasonable profit.
It is better for buyers to buy off market or private sale rather than at auction. Unfortunately, some properties cannot go for private sale and must be auctioned. You do need to know what is the appropriate breakeven and stick within your budget.
Never go to an auction or talk with an agent thinking / bidding as though you are a seller. By doing so, you only believe the house should be sold at higher price.
Thank you for reading.
