Some keen Canberra vendors might be tempted to sell prior to auction but, in the current extraordinary market, LJ Hooker agents are advising homeowners to hold out until auction day.
LJH Kaleen franchisee and auctioneer Tim Russell says while many enthusiastic buyers are coming in with exceptional offers ahead of the auction date, he is encouraging his clients to “wait and see”.
“We’re advising sellers to push through to the auction because you just don’t know how high the price is going to go,” he said.
“I’m actively discouraging pre-auction bids because, the way the market is, their property will probably be worth more four weeks down the track.”
With Canberra’s property market booming, what do you need to know if you’re buying or selling a home via auction? Cam Sullings is with the team from LJ Hooker Canberra City and LJ Hooker Dickson to discover some tips for negotiating your sale or purchase.
Posted by The RiotACT on Sunday, April 18, 2021
Mr Russell says numbers at his auctions have “gone through the roof”.
“We’re seeing phenomenal activity at every open home and a greater number of registered bidders,” he added.
On 31 March, Mr Russell sold a two-bedroom townhouse at 6/16 Gabriel Place in Florey for $587,000, which he says was about $60,000 above the expected price.
“The number of people we had through the open home was just ridiculous, and we had 12 registered bidders at the auction,” he said.
“Most of the feedback from inspections was that it would sell in the early five hundred thousands but, of course, the competition caused it to go nuts.”
He says people’s attitudes have changed at property auctions.
“There’s certainly an air of anticipation,” he said, “and people are turning up knowing they might have to pay more than what they’d like to.”
The sales are going through the roof, with record prices being achieved all over Canberra, and his area around Kaleen is no exception.
“In my 20 years in the industry, I’ve never seen anything like this,” Mr Russell said.
“People are bidding on everything. We’re seeing a rejuvenation of Kaleen with a lot of knock-down rebuilds of the 1970s suburban homes.”
LJ Hooker Weston Creek franchisee and sales consultant Jane Kusetic is advising sellers not to wait until spring to sell their homes.
“Spring is usually the busiest time of year, but the market is incredibly strong right now,” she said.
Ms Kusetic is seeing a record number of parties through her open homes and also a record number of registered bidders at auctions. Most are cashed up ready to buy.
“Buyers are coming to auction with finance ready to go because often they have missed out on previous properties.
“Some buyers are getting really frustrated because they’ve missed out three or four times.”
One young couple had been searching for their first home since December and finally managed to secure a four-bedroom home in Holder this week.
“They had missed out on six or seven others and had to increase their budget from $850,000 to secure their first home for $975,000,” Ms Kusetic explained.
She says buyers – from first home buyers to investors – are “desperate” to get into the Canberra market and that urgency, coupled with very low stock, is pushing prices through the roof.
On 6 March, LJ Hooker Weston sold a home at 16 Becke Place in Garran for $1.493 million, almost $250,000 over the reserve and more than $300,000 above the owner’s original price expectation.
However, Ms Kusetic says, as a result of the buoyant market, some vendors are increasing their expectations.
“Some vendors are getting excited and wanting top dollar, and the way things are going, you never know how high the prices will go,” she concluded.
If you’re looking to buy, be sure to look through LJ Hooker’s auction showcase.