Posted to The Age (4/12/2012) on 4/12/2012 at 4:36 PM
Commenting on "Auction clearance rate plunges"
http://theage.domain.com.au/real-estate-news/auctions-looking-up-as-rates-go-down-20121204-2asok.html
The APM figures are quite rubbery. Each week, the auction results of major cities are published online in The Age under auction results. The figures do not quite match the REIV results published in the Sunday Age. The question is, which one is more reliable?
I have written on many occasions that real estate agents tend not to report unfavourable auction / sale results, to avoid tarnishing their sales records, which the agents tend to brag to the potential vendors when appraising properties,
Auction results do not paint a realistic picture about the real estate market. During bad time like now, many houses are in the market to be sold by private treaty (private sale). Agents tend to ask for big marketing expense for auction, and owners who are in financial difficulty cannot afford to pay the additional money. It must also be noted that many smaller agencies do not encourage auction, because they do not have an in-house auctioneer or do not want vendor to incur an external auctioneer fee. Additional expense will make the agent to be less competitive in such cut throat commission base business.
Commenting on "Auction clearance rate plunges"
http://theage.domain.com.au/real-estate-news/auctions-looking-up-as-rates-go-down-20121204-2asok.html
The APM figures are quite rubbery. Each week, the auction results of major cities are published online in The Age under auction results. The figures do not quite match the REIV results published in the Sunday Age. The question is, which one is more reliable?
I have written on many occasions that real estate agents tend not to report unfavourable auction / sale results, to avoid tarnishing their sales records, which the agents tend to brag to the potential vendors when appraising properties,
Auction results do not paint a realistic picture about the real estate market. During bad time like now, many houses are in the market to be sold by private treaty (private sale). Agents tend to ask for big marketing expense for auction, and owners who are in financial difficulty cannot afford to pay the additional money. It must also be noted that many smaller agencies do not encourage auction, because they do not have an in-house auctioneer or do not want vendor to incur an external auctioneer fee. Additional expense will make the agent to be less competitive in such cut throat commission base business.
