Buying property? Then this blog is for you!!

This blog helps the property buying community to more easily share strategies, stories and helpful tips. It is an open blog. Anyone can join, contribute and invite others to join.

If you would like to talk property, please contact us:
Office: 1300 911 576
Martyn Fleming: 0400 000 822
Guy Clarke: 0409 055 128

28 July 2008

Auction Clearance Rates at 37.% for Brisbane last week

Source: RP Data
The auction clearance rate for Brisbane was 37.1% last week. Another symptom of a buyer's market and a significant change from the average clearance rates in 2007.

Morpheus Property has noticed many buyers are put off by auctions. When a property goes to auction, there are obvious disadvantages to the buyer - the inability to include conditions and the potential for competition. However, pre-auction sales have no such restrictions. If you want to avoid an auction, place your offer with enough time to get it off the market prior to the auction date. Although agents list properties as going to auction, most vendors are seriously considering all offers in today's market.

On the other hand, auctions can give buyers the advantage - They reveal the competition and what they can afford. This can be useful where an auction is poorly attended and the property is under some form of duress to sell (foreclosure, vendor has already purchased antoher property, etc). When the auction doesn't draw a crowd, it can reveal what is a reasonable offer for the property after it's passed in at auction.

However, Morpheus Property notices that many buyers don't even consider making offers prior to auction - either because they don't think it's possible, or they're not confident of the property's value.

Migrants and Foreign Investors are also dis-inclined to bid at auction, due to the requirement to lodge FIRB applications. Remember, the Foreign Investment Review Board (FIRB) can fast-track applications for properties at auction, but it is essential to have this approval prior to auction.

If you're unsure or would like advice about your buying strategy, call us on 1300 727 586.

Yours in property!

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