Greetings from Scoutable and welcome to our March Wrap Up.
I hope you are well.
Auction clearance rates are at an all-time high. The media hype and the strong clearance rates are influencing many vendors to sell via an auction campaign. How can we best prepare for the auction? Please find our tips below.
BEFORE THE AUCTION
Obtain mortgage pre-approval
Complete all your due diligence (council / development application checks, strata report, building & pest inspection, contract review)
There is a chance the property could sell pre-auction, so be prepared and complete your due diligence early
If you are interested in trying to buy before auction you need to establish if the vendor (& agent) are open to accepting an offer
Set your price limit. Research recently sold properties, and compare apples with apples (land size, number of bedrooms, condition etc). In this current market, only focus on sales within the last two months
AT THE AUCTION
Write your price limit down. It is ok to have two figures in mind (happy price and stretch price).
Make your price limit an unusual number, e.g. $1,703,00 rather than $1,700,000
Have a plan
Everyone will be nervous, just breath calmly, bid confidently, stick to your plan and price limit
AFTER THE AUCTION
If the property passes in to you, you will have the exclusive rights to negotiate after the auction
If you win the property (yay), you will be required to pay the deposit, mark any agreed changes to the contract, and of course, sign it
Once signed, send a copy of the front pages (vendors and purchasers) to your bank / broker who will start to process your final mortgage approval
If you miss out, make sure you keep in touch with the agent. They will know you are a serious buyer and will hopefully have another great property for you just around the corner
KEY AUCTION TERMS
Vendor bid: The auctioneer is allowed to place one bid on the behalf of the vendor during the auction. This is not a genuine bid
Reserve: Price the vendor is willing to sell for (not necessarily in the quoted price range during the campaign)
On the market: Words the auctioneer will use to signal the property has reached or surpassed the reserve. They could also say “we’re playing for keeps” or “this buyer holds the keys”
Passed in: The property has not reached the reserve price, so it is not sold on the auction floor
Unconditional sale: Auction sales are unconditional, so there is no cooling off period (contract can not be subject to any due diligence or finance)
If you would like to discuss the auction process further or auction strategies, please get in touch.
Until next month,
Kellie Landrey | Principal Buyers Agent
IN THE NEWS
BOOMING PROPERTY PRICES PUSH HOUSEHOLD WEALTH TO RECORD LEVELS IN AUSTRALIA
https://www.abc.net.au/news/2021-03-25/booming-property-prices-push-household-wealth-to-record-levels/13274852
CHINESE INVESTORS TIPPED TO RETURN THIS YEAR
https://theurbandeveloper.com/articles/chinese-real-estate-investment-bouncing-back-in-2021
SYDNEY AUCTIONS: TWO WAVERLEY SEMIS SELL FOR $651,000 PRICE DIFFERENCE JUST WEEKS APART
https://www.domain.com.au/news/sydney-auctions-two-waverley-semis-sell-for-651000-price-difference-just-weeks-apart-1039702/
PROPERTY OF THE MONTH
Unit 81, 8 Birtley Place, Elizabeth Bay
"Birtley Towers" in Elizabeth Bay was built in 1934, comprising 48 apartments over eight levels. Elizabeth Bay is positioned three kilometres east of Sydney's CBD. Elizabeth Bay is part of the densest urban area in Australia with its own population of 5,000 and is closely linked to Potts Point and Rushcutters Bay. In the 1930s it shared in a boom in flats built in the Art Deco style, a significant collection now heritage-listed.
Apartment 81 at Birtley Towers is located on the top floor. It is 80sqm and comprises one bedroom with large built-in robe, living, dining / sunroom, kitchen, one bathroom and laundry cupboard. The apartment is north and east facing, offering views over Sydney Harbour. There is scramble parking available in the complex grounds.
The complex is company titled (as opposed to strata), with a company rule that doesn't allow owners to lease their apartments out. Therefore, Birtley Towers is only suitable to owner occupiers.
The price guide is $1,700,000.
If you'd like to know more about this property or any others, please get in touch.
