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Newly released data reveals that both real estate agents and property owners agree that an unrealistic sale price is the number one reason properties pass in at auction.
The findings come from a survey of 1,001 property-active Aussies, commissioned by auction streaming platform Gavl in conjunction with consumer research company Pureprofile. A separate survey was conducted with 118 agents to compare the findings.
The results revealed that 82 per cent of real estate agents and 61 per cent of home owners feel that properties pass in because of unrealistic prices.
The survey also found that home owners feel properties pass in due to inadequate number of buyers on the day, and because the auction didn’t attract the right target buyers.
It revealed that only 9 per cent of agents believed a property passed in due to a lack of potential buyers. No agent believed that properties pass in because of wrong timing in the market by the vendor or the weather on auction day.
Gavl spokesperson Justin Nickerson said that the results were illuminating.
“It’s important that agents and vendors set a realistic sales price, as auctions often reveal the natural price a property will sell for,” Mr Nickerson said.
“From an economic point of view, the final price at auction, whether it rises above vendors’ expectations or even passes in, is the most accurate estimation of the market value of the property, if it is marketed correctly.
“Trusting the experts and finding the right price for a property is essential as it can mean the difference between a property selling and passing in. The benefit of auctions for vendors is that they bring the market together in one place, and for agents, it allows their clients to see the property unfold in an accurate and highly transparent way.”
Mr Nickerson said that having an auction pass in wasn’t always the end of the road.
“The outcome of having a property pass in at auction isn’t the be-all and end-all.
“Digital auction tools have many benefits for vendors, such as increasing the number of potential buyers on the day. A passed-in property may not be the outcome that every vendor wants, but it doesn’t have to automatically result in an adverse sales result.”
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