Real Estate Auctions
Real Estate Auctions § Identify the market Real estate auctions are the selling of property to a bidder who offers the highest price above the reserve price. ... Government policies differ in each state of Australia, and for this reason we have limited our study of the real estate market to New South Wales. ... Real Estate Agents: - are contracted by the vendor to corroborate the sale of their property. ... Supply is affected by seasonal conditions, as onsite property auctions are more successful during spring and summer because the weather conditions can boost the property’s overall appeal. ... “The main advantage of Auctions is that a firm price does not need to be set. ... Auctions are likely to be more effective if the property is superior in quality to other properties in the area or if the property market is buoyant (i. ... Clearance rates NSW – differs for each area – eastern suburbs, lower north shore and inner west sell well at auction while further west auctions are ineffective (therefore not widely used) because there is less demand. ... ) Fall in auction volumes this year from 4,300 to 3,850 Lots of demand, limited supply = fierce competition = auctions are affective coz price is higher Usual clearance rate = 65% Now: House = 64% Semis and terraces = 77% Units = 74% March quarter 4% average rise in house prices