Andrew Bell’s Market Update: Auctions lead the way, but be wary

Issue 07 | Thursday 8 April 2021 | Auctions lead the way, but be wary!

Hi, Andrew Bell here and today I want to tell you a little bit about 90 Savoy Drive, Broadbeach Waters, one of the most private and exclusive residential property locations in the heart of our city yet somewhere that less than a handful of people would ever have known about. This property is on a massive 2,727 square meters of land and is all but an island with 124m of water frontage surrounding the property on three sides including a 46m north facing section of waterfront with a white sandy beach. It truly is an unbelievable hideaway set well back from the road down a private driveway, giving this inner-city enclave immense privacy and great security. This property goes to auction on Saturday, 8 May so take it all in as I provide this week’s market update.

Auctions are certainly the catchcry of the current real estate market. All over the country an unprecedented number of properties are going to auction, and the success rate is at unparalleled levels and generating amazing results. Many properties are selling millions of dollars above reserve. To be very blunt, anyone selling at present would be incredibly foolish not to take their property to auction, but there is a catch.

No question auctions are in the best interests of both buyers and sellers at present. For buyers, they are becoming immensely frustrated and angry about private treaty sales. Most sales today come from multiple offer situations and some properties are foolishly being sold within days of listing. A great percentage of buyers are not getting the opportunity of inspecting the properties and doing the necessary steps such as building and pest inspections and getting their finance in place before being told the property has already been sold. Even those who are ready to go within 24-hours are submitting offers only to be told that the property is being sold to someone else. They do not know what has gone on behind the scenes and why someone else got to buy the property and not them. An auction is increasingly recognised as a better forum so that every buyer has time to get themselves organised and ready to buy and can see in an open forum what is happening and have the opportunity of increasing their bids or indeed ceasing to bid. It is more open and more transparent.

For sellers, it is ensuring that a solid marketing campaign can be pursued in order to attract every conceivable potential buyer, and then to gather those buyers together at one location and at one time and allow open competition to genuinely produce the highest possible sale price.

However, the catch is that auctions are best left to the experts. It requires the highest level of skill in the real estate profession. Sadly, there are real estate agents running around all over Australia and indeed here on the Gold Coast recommending auctions when they have next to no skill in this arena. In the real estate world, it is as important to get the right practitioner as it is in the medical world to ensure you have the highest skilled surgeon to perform an operation on you. You wouldn’t want someone just out of medical school, but someone who has performed thousands of similar operations and has a proven track record of success.

A warning to all out there to do your homework before appointing an agent to auction your property. When conducted by a true experienced professional it is the best method of sale, but when conducted by amateurs the financial damages can be enormous. Here on the Gold Coast, I see real estate businesses who have only been in operation 4 or 5 years and have conducted next to no auctions, yet they purport to be experts in the field. Here I am with nearly 18,000 auctions under my belt and whilst considered one of the most experienced auctioneers in the country, I never kid myself that there aren’t ongoing learnings. We conduct over 1,000 auctions per year and have been doing so for 31-years, and whilst considered the leading auction company in Queensland, we train each week to be extraordinary in this space. You can never be extraordinary by only conducting 10 or 15 auctions per month.

So, sellers do your homework. Get a full picture of peoples track record. See how many years they have been conducting auctions and how many auctions they have done. Make sure they have a full-time in-house auctioneer who works solely for that office and has worked together with the salesperson conducting the auction for years and years as the chemistry between auctioneer and agent is vital.

There is so much I could share on this front and it frustrates me that our industry does not have higher licencing standards and training requirements for those conducting auctions, but as one of Australia’s leading auctioneers I will keep pushing for this for the protection of consumers.

What do you think about 90 Savoy Drive? Can you imagine what could be created there? It has been in the same family for 23-years and it truly does have endless possibilities with its unique 270-degree water vistas, views up Tallebudgera Creek, and surrounded by manicured parklands overlooking Cascade Gardens and Platell Park rather than looking at other homes. Deep water at the front and rare provides endless opportunities for boating. It truly is a blank canvas for anyone with the foresight to see what could be done in this unique and exclusive position.

For more details about the property please contact our Ray White Prestige Marketing Agent, Jackson Paradise. His details are on screen now.

I look forward to being with you in a fortnights time.

Warm Regards,

Andrew Bell, OAM
Chief Executive Officer
The Ray White Surfers Paradise Group

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