The first home owners grant combined with low interest rates has helped Sydney and Melbourne enjoy bumper auction activity, with clearance rates riding high, week out.
Lori Collins, principal of Harcourts HomeZone Annerley and West End, has excelled in the curent market, hitting a 100 per cent clearance rate this month selling just under $5 million in property.
Ms Collins told Real Estate Business the housing market was currently enjoying stellar results thanks to a final push from first home buyers.
“The past quarter was brilliant, but I think the next quarter is poised to be even better. There is a lot of pent up demand in the market at the moment. The problem will now be finding the stock to cope with the demand,” she said.
Ms Collins attributes her personal success to her rigorous marketing and refusal to talk price.
“When marketing a property I always advise my clients never to talk price. They should not discuss price expectations with family, friends or neighbours because as soon as they do – they effectively put a price cap on their property,” she said.
Ms Collins said she advises her clients to let the market decide the value of a property.
“My client’s house may be close to facilities, in a great suburb or be freshly renovated, all of which would significantly add to its value. In my experience, properties tend to sell for more when there are no price expectations associated with them,” she said.
“If you trust the process, the process delivers and the process is marketing without a price.”
Another marketing strategy Ms Collins implements is auction day communications to prospective buyers.
“I always send an auction email alert to my database on the day of an auction. Similarly, I also advertise the property in the local press on the day of the auction. I like to hold my auctions late in the day so that the advertising can reach the greatest amount of people,” Ms Collins said.
“Agents should not slack off on the day of an auction. I run the same add from week one to week four.”