Canberra auctions: Vendors breathe easy with pre-auction sales

A combination of low clearance rates and the rush to buy a home before Christmas is resulting in a greater willingness among vendors to accept pre-auction offers, according to agents.  

There were 66 scheduled auctions on Saturday, and no doubt many vendors would have been feeling apprehensive in the wake of falling clearance rates.

But some vendors got to breathe easy, with the sales of their home’s secured before the scheduled auction. According to Domain data, seven properties slated to go under the hammer on Saturday sold pre-auction.

Of the homes that sold prior, the majority were in Belconnen, which is consistently Canberra’s best-performing region for auctions.

Agent Team Belconnen principal Steve Lowe said his “clearance rate before auction is much higher than at auction”.

“We actively promote pre-auction offers [especially] if we get the right offer and the right buyer,” he said.

This weekend, Mr Lowe had two auctions scheduled in Holt – but they both sold before going under the hammer.

The home at 43 Trickett Street sold before auction for $520,000. The three-bedroom home was newly renovated, and Mr Lowe said the pre-auction sale enabled the vendors to place an offer on another property.  

“There’s a lot of fear in the market at the moment, and people are keen to get their homes sold before Christmas,” he said.

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A three-bedroom home in Aranda also sold before auction, with vendors eager for a quick sale.

“The auction process sets a deadline for the sale, but in this case, we had a purchaser and a vendor where it suited both to do a deal beforehand,” said Luton Properties Belconnen listing agent Charles Blackney.

The home at 19 Arabana Street sold for $790,000.

“My philosophy on the auction process is there are three stages,” said Mr Blackney. 

“The first stage is private treaty beforehand, the second stage is the auction day itself, and the third stage – if it passes in – for me, is not the end of the day; you are in a position to set a price from a position of knowledge based on feedback from the campaign,” he said.

In nearby Hawker, a four-bedroom home at 52 Alroy Circuit sold prior for $940,000.

“The reason this particular property sold was we had someone who lived in the area and had children attending the nearby school. It was a lifestyle choice for the family,” said Peter Blackshaw Belconnen listing agent Michael Braddon.

Mr Braddon indicated the current environment could favour pre-auction offers.  

“We are seeing fewer bidders at auctions and fewer people committing to the process, so it makes it easier for vendors to look at accepting an offer prior to auction,” he said.

“An unconditional offer is worth taking if it is close to the mark, but it is a bit unknown for buyers at the moment, with choice and tighter lending conditions.”

Next Saturday will be the last significant auction day for 2018, with 72 properties scheduled to go under the hammer.