Issue 20 | September 26th | Spring Is On Fire
Hi, Andrew Bell here and with a couple of things I want to share with you today as the Gold Coast just continues to blossom and to shine its way through this first month of Spring.
Our in-room auctions the week before last were quite amazing. It was as robust as I have ever seen at an auction, and I have done 17,000+ of them over the years. There were a lot of buyers in the room keen to lock up the properties of their choice and who were pleased to be able to do so in an open environment. Buyers get so sick of putting offers in and then being told that the property has been sold to someone else. In the auction room, they can make the choice as to whether they want to be the highest bidder or miss out on the property, but at least it is all out in the open. Competitive bidding saw sellers get prices higher than they expected, and so we join with other major cities around Australia who are now recording over 70 percent success rates on auction day, and then with after auction sales that number is climbing well into the 90 percent range. The great thing for buyers and sellers? It is all done within 30 days of the property coming on the market.
Some interesting sideline observations. Finance has been a huge issue and we know APRA has tightened all their regulations. At first, buyers had enormous pushback on these new regulations. Loan application forms grew from three pages to thirteen plus pages, with a lot of information required in order to get approval. Initially, people just rejected the whole concept of what they saw as too complex, and so during 2018 as much as 40 percent of all contracts entered into collapsed because of finance.
The great news now is that buyers are understanding the true value of a broker. Brokers are busier than ever and are much more relevant. They do all the legwork and the paperwork and so buyers are finding that the process is easier than ever when engaging a broker. The big learning for buyers is that they must be prepared before they go house hunting. The reality is, as the market has picked up there are so many people applying for loans at present that your application can sit on a bank processors desk for up to two weeks before they even pick up the file. This has caused many buyers to miss out when they have found a property because they simply could not get their finance in place fast enough. As such, real estate buyers, it is essential that the first thing you do is put in a loan application. Do it through a broker. Ray White has the third largest procurer of home loan finance, namely Loan Market. Click here for the details for Phil Rogers who is an awesome guy and he works so hard to get the best deals for his clients. As a financed approved buyer, you are in a stronger position to negotiate for real estate.
A big thank you to so many people who joined us at the Ray White Surfers Paradise Ball (watch video here) the Saturday before last. It was a great night and thank you for all the positive feedback about the theming, the music, the food, and of course the highlight was the charity auction which raised an amazing $230,000. A new record and we can’t wait to get that money into the hands of the Muscular Dystrophy Association who will be buying respirators, wheelchairs and medical beds to help make life a little more comfortable for those children with Muscular Dystrophy, as well as a good sum going into research for a cure as we are determined to see the end of Muscular Dystrophy.
Have a good look through this week’s eNewsletter as we have a fabulous selection of some 50 properties going to auction. These are properties with sellers who are genuine about wanting to sell their properties. They are not just testing the market and so they are the most sensible properties to be looking at as they are realistic sellers who would love to see their properties sold so they can move onto the next phase in their life.
Until I am with you in a fortnights time, let’s be kind to one another and continue to appreciate and love this country we have.
Andrew Bell, OAM
Chief Executive Officer
The Ray White Surfers Paradise Group