Hannah Cash sold her East Brisbane house for $250,000 more than the highest offer received prior to auction. Picture: John Gass.
Trigger-happy sellers who surrender to the lure of a quick sale are “crazy” because they could be missing out on pocketing hundreds of thousands of dollars more for their homes.
New figures from Queensland’s biggest property groups reveal patient vendors who sell their homes under the hammer fetch around 12 per cent more than the highest offer received prior to auction.
Highest offers versus sale price. Source: Ray White.
It comes as auction success rates in Brisbane sit at their strongest level in years, with Place Estate Agents selling 15 out of 15 properties at auction and Ray White clearing 75 per cent of stock last week.
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Auctioneer Peter Burgin from Place Estate Agents. ImageL AAP/John Gass.
The latest figures from Ray White show sellers who took their property to auction were rewarded with a sale price under the hammer of 11.6 per cent higher than the best offer prior.
Place Estate Agents chief auctioneer Peter Burgin said vendors selling at auction through Place were achieving prices 12 to 13 per cent higher, on average, than the best offers.
“It just doesn’t stand to reason at the moment that you would sell your home quickly,” Mr Burgin said. “It’s just crazy.”
“The day one offer sounds appealing and might seem like the path of least resistance, but we know from experience that by actually allowing a seller to test the market property, we are absolutely smashing prior offers.
This property at 33 Heidelberg St, East Brisbane, sold for $1.23 million under the hammer last weekend.
“We’ve seen plenty sell for $200,000 or $300,000 above reserve price and are averaging seven registered bidders (at auctions).
“When you’ve got that depth of activity, why let them buy it on day one before introducing any competition?”
Just ask Brisbane marketing director Hannah Cash, who recently sold her house at auction for 23 per cent more than she was offered prior.
More than 100 people gathered to watch Mrs Cash’s home at 33 Heidelberg Street, East Brisbane, sell last Saturday for $1.23 million — $251,000 over the highest previous offer.
Inside the home at 33 Heidelberg St, East Brisbane.
Marketing agent Madi Roche of Ray White Bulimba said an incredible 30 bidders registered for the auction.
“There’s no way we would have sold prior, but we had a tonne of offers to buy,” Ms Roche said.
“We attracted a lot of interest from all over Brisbane, Sydney and Melbourne, and even an expat couple in Hong Kong were looking to come home but a local buyer won the keys.
“We have sold a lot in this street now and we have plenty of buyers who are looking.”
This property at 115 Stephen St, Camp Hill, sold at auction for well above expectations.
Mrs Cash said while it might have been tempting to accept an early offer on the property, she would never have achieved such a high sale price.
“We had some prior offers, but we knew (going to auction) was the best option to get the price we wanted in the end,” Mrs Cash said.
“I think definitely towards the last week of the campaign, we had a lot more people interested and pre-registering to bid on the day.”
Now, Mrs Cash and her husband, Daniel Holzberger, are looking to buy.
“Now, we’ll be competing with everyone to find our next family home!” she said.
This property at 195 Laurel Ave, Chelmer, sold fo almost $4 million.
Local agents are also reporting sales well above auction reserve prices and asking prices.
Matthew Hackett of Place Estate Agents recently marketed a property in Bulimba that sold at auction for more than $400,000 above the $1.3 million reserve.
The property at 34 Shakespeare Street sold under the hammer for $1.768 million.
Not far away in Camp Hill, a post-war cottage on 800 sqm at 115 Stephen Street fetched $1.435 million at auction, when the reserve was only $1.3 million.
And in the city’s west, a three-bedroom home in Sinnamon Park changed hands for $745,000 after a marketing campaign, when the owners had only been hoping for $620,000.
This property at 54 Birch Street, Marsden, attracted 27 registered bidders before selling under the hammer with Ray White for $302,000.
Ray White Queensland chief auctioneer Mitch Peereboom said his “driving ambition” was to create competition to get the best price for sellers.
“We are not just selling to the first buyer that comes along,” Mr Peereboom said.
“Now is the time to come to the market with such confidence that we’re going to be achieving outstanding sale prices.
“Last week was phenomenal. We came off the back of an 80 per cent plus clearance rate last week, which has continued throughout our midweek auction events this week too.
“All price points are active.”
Ray White Queensland chief auctioneer Mitch Peereboom. Image: AAP/John Gass.
Alex Jordan of McGrath Estate Agents said anyone who thought they could snare a house moments after seeing it listed — or even before it hit the market — better have their finances in order.
But he said vendors could usually get more for their property if they held out beyond the first offer.
“Potentially you can get more,” Mr Jordan said.
“I don’t think there is ever a time you could say no.”
