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Are auctions the answer?

28 September 2016 Tim Neary
Real estate sales auction

An REB Top 100 Agents 2016 team is taking the challenging Gold Coast real estate market by storm, and they are doing it by auctioning one prestige property at a time. Could their strategies be what you need to make more sales?

Sam Guo and Julia Kuo told the audience at AREC 2016 that auctions make up the bulk of their main business. Both of them agree that an auction is much more powerful than private treaty because it allows you to capture people’s emotion.

“And once you have captured the buyer’s emotion, it paves the way for them to take a position straightaway,” Ms Kuo said.

“Otherwise, people come and go and never take a position.”

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Mr Guo said the auction process works well both ways – it’s good for sellers as well as buyers.

“It’s good for seller because it provides a solid process for them to get a quick result. And it’s good for buyers, especially for cashed-up buyers, who have identified a property they really like and want to buy immediately.

“It’s how we do our job for the client... it’s what they pay us for.”

Not only can auctions produce higher selling prices, but they can also reduce the number of days on the market.

Buyer’s agent and CEO at Your Empire, Chris Gray, said he buys up to 100 properties a year. But he never buys them on auction because if a “good agent has marketed it well, a $1 million property will go for $1.05 million or $1.10 million.”

Research recently conducted by the Real Estate Institute of Western Australia revealed that selling a property at auction has the potential to produce a sale 26 days faster than a private treaty arrangement.

In qualifying for REB’s Top 100 Agents ranking for 2016, Mr Guo and Ms Kuo sold 57 of the 81 properties they listed for a total value of $97.5 million in an average of 37.5 days on market.

Are auctions the answer?
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