The Block 2019: Does the auction order matter?
After months of rebuilding, refining and refurbishing, contestants on The Block could see their auction results come down to one decision.
The order of the five auctions will be key, with the five couples and their agents negotiating who will go first through to fifth.
They hope not only to sell under the hammer but also to make the most profit above the reserve price to win the competition, and everyone wants plenty of bidders to go around throughout the day.
The order can be the deciding factor of who wins the series, says Cooley Auctions’ auctioneer Damien Cooley, who has been involved in several past series and will be flying in to auction Mitch and Mark’s house on the weekend.
“Order of sale can literally mean the difference between winning or coming fourth or fifth,” Mr Cooley told Domain.
The challenge for the Oslo would be that there were five homes, all three-storey terraces in St Kilda and all with a price guide between $3 million and $3.3 million, Mr Cooley said.
“There may well be five buyers but are there 10 buyers? Are there 15 buyers or 20?”
More buyers, he said, meant more competition for the homes and a therefore a higher selling price.
If there are more buyers, it may be best to go last in the auction order to capture the buyers who would be competing from a fear of missing out and bid up the prices.
That was the scenario in 2014, when winners Chantelle Ford and Steve O’Donnell sold their Albert Park apartment last in the auctions.
“The last apartment sold was arguably the worst in terms of styling and finishes and everything but they won because of the bigger buyer pool,” Mr Cooley said.
Homes with unique buyers – those not wanting to bid on any other properties – could afford to be more strategic with what position they took, he said.
Getting the order right could help set the tone for sales, said head of real estate with Pitard Group Marianne Pitard.
Ms Pitard was involved in the auction of four units in Havelock Street, St Kilda on the same day last month, owned by the same vendor, including three one-bedrooms and one two-bedroom.
Of the three one-bedroom units, two were New York-loft style, and were particularly popular with buyers.
“The most popular property went first because we thought being a shoo-in to sell it would go,” Ms Pitard said.
“That set a positive tone from the start because if we started with one that passed in, it could set the mentality that ‘maybe these are not as popular as we were thinking’.”
The least popular property, which did not have the character of the other units, was auctioned last to capture the “leftover” buyers who did not want to miss out.
Ms Pitard said the kitchen and bathroom layouts would help sell the Block homes. She also believed the celebrity aspect of the contestants would help sell homes at the Oslo.
Domain senior research analyst Nicola Powell thought the contestants might choose to auction the most popular home first.
“I really think you don’t know until the day but my view is whoever has the most registered buyers should go first, with the least last,” she said.
Given that Mitch and Mark’s home at 38A Grey Street had the most interest for their online listing, they may lead off the auctions followed by Jesse and Mel’s at 38E Grey Street which had strong feedback because of its position.
Dr Powell said in order of popularity, Tess and Luke at 38B Grey Street could be third with Deb and Andy at 38C Grey Street fourth and El’ise and Matt’s house at 38D Grey Street last.
The final three have been named the dark horses and could win despite not being as popular as the other houses. The winners, ultimately, will need to have the biggest profit above the reserve at the end of their auction.
She said it would also come down to the reserve prices that have been set. Mitch and Mark’s house may be popular, but if they set a reserve too high, their profit may not be as much and they won’t win.
We recommend
We thought you might like
States
Capital Cities
Capital Cities - Rentals
Popular Areas
Allhomes
More
