Posted to The Age (25/11/12) on 30/11/2012 at 4:05 AM
Commenting on "Sale auction is moving to middle"
http://theage.domain.com.au/real-estate-news/sale-action-is-moving-to-middle-20121124-2a0cn.html
The increase in sales by Barry Plant Glen Waverley may not be due to improved market conditions. The Glen Waverley office changed ownership during this year. The previous owner put in more effort in his winning race horse than running the business. Currently, Glen Waverly office belongs to a group who owns several offices; synergy and pooled resources seem to pay off.
Without given a more comprehensive set of statistics, it is difficult to say whether the increase is due to cannibalisation of other real estate companies’ business in the area.
When the boom dies, many smaller agencies had their last grasp of sales by offering extremely competitive commission to vendors, which could also explained lower sales in the previous year by larger companies. These competitors are now history, resulting in "less man more share".
Readers must also take note that there are a lot more houses not sold by auction. Many vendors cannot afford to pay money for an auction campaign which requires more advertising money to get additional exposure in various media. Many vendors are already having trouble to pay their mortgage, let alone advertisement.
Commenting on "Sale auction is moving to middle"
http://theage.domain.com.au/real-estate-news/sale-action-is-moving-to-middle-20121124-2a0cn.html
The increase in sales by Barry Plant Glen Waverley may not be due to improved market conditions. The Glen Waverley office changed ownership during this year. The previous owner put in more effort in his winning race horse than running the business. Currently, Glen Waverly office belongs to a group who owns several offices; synergy and pooled resources seem to pay off.
Without given a more comprehensive set of statistics, it is difficult to say whether the increase is due to cannibalisation of other real estate companies’ business in the area.
When the boom dies, many smaller agencies had their last grasp of sales by offering extremely competitive commission to vendors, which could also explained lower sales in the previous year by larger companies. These competitors are now history, resulting in "less man more share".
Readers must also take note that there are a lot more houses not sold by auction. Many vendors cannot afford to pay money for an auction campaign which requires more advertising money to get additional exposure in various media. Many vendors are already having trouble to pay their mortgage, let alone advertisement.
