Expressions of Interest or Auction?

No estate agent can say that any one method of sale is best, the best method of sale will depend on a number of factors such as the type of property and amount of demand in the market at the time.

Looking at the Bayside market over the last 6-12 months we have been able to see a slow but gradual decline in the auction clearance rate each week. Where previously we might see clearance rates above 70% to 80%, now we are repeatedly seeing auction clearance rates in the 60% range with a number of great quality properties not receiving a single bid at auction. We review all this information when recommending the best strategies to our clients and in certain cases find it hard to recommend auction as a desired strategy of sale when just over half of all auctions go unsold.

Alternatively, we are finding Expressions of Interest as a very successful method of sale. This is a lot more work for the agent but gives us much greater control over the negotiation instead of hoping buyers turn up and bid at auction. One big difference is that Auction conditions prevent any special conditions which, while sometimes is a positive, can also be detrimental and limit some buyers from participating.

One great example is a property we sold at 34 Canberra Grove, Brighton East. This was sold via an Expressions of Interest campaign to a buyer from our network, with the negotiation taking 3 weeks to achieve a record price for Brighton East. This wouldn’t have been possible at an auction as this was a foreign buyer who couldn’t legally participate at auction, as they needed to gain FIRB approval.