Real Estate

auction struggles pave the way for more pre auction sales in knox

Written by The ReReport

MORE Knox vendors are accepting pre-auction offers in a market changing in favour of buyers.
Early deals prevent properties being passed in or the auctions cancelled, as there are fewer buyers and more holding back from bidding, local agents say.
But Harcourts Wantirna director Archie Mantsos said most vendors would not accept pre-auction offers unless they met the price expectations.

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10 Devira Court has polished interiors and a well-equipped contemporary kitchen.

The agency recently sold 12 Michael St, Scoresby prior to auction for $700,000, which was above the vendor’s expectations, Mr Mantsos said.
Harcourts also sold two properties from three at an in-room event on October 31.
In Rowville, the vendor of 10 Devira Court accepted an $865,000 offer prior to the November 15 auction. The result was just above the price guide of $790,000-$860,000.
“It is rare to get an offer above the price guide in this market but the buyer was emotionally attached to the property,” Noel Jones Wantirna agent Michael Hill said.
“They were keen to settle down and inspected the property several times.”
Mr Hill said the buyers had lived and worked in China and interstate for several years and were keen to buy their first home.
The Devira Court block was purchased in 1990 for just $68,000 and the vendor built a house.

2 15 Bamba Court Scoresby2/15 Bamba Ct, Scoresby sold for $715,000 at an October 31 in-room auction.

“The clearance rate in Knox was below 40 per cent on the weekend,” Mr Hill said.
Preliminary results for the week ending November 3 showed Knox had a 33 per cent clearance from six auctions. Two properties sold at auction, two were passed in and two withdrawn, according to CoreLogic data.
In the previous two weeks, the clearance rate was just above 50 per cent.
The market has favoured vendors in recent years with strong price growth due to keen demand from local and outside buyers.
But this year has seen a major shift with a decline in buyer and inspection numbers due to several reasons, and price growth has fallen, agents said.
But agencies such as Harcourts Wantirna are still holding many auctions, with six properties scheduled for in-room auction on November 14.
The agency has been running in-room events frequently this year because of a strong track record and the popularity of auctions in suburbs such as Wantirna and Wantirna South.
Meanwhile, Ray White Ferntree Gully is having its annual spring auction spectacular and has 28 properties up for auction till the end of November.

That agency will hold in-room and on-site auctions and is also lining up auctions for December.
In Wantirna South, one agency cancelled an October 27 auction on the day itself because of a lack of buyer interest.
“We did not want to embarrass the vendor with no bidders but we are hopeful we can negotiate with one or two potential buyers,” the agent, who spoke off the record, said.

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