Auctions just not accepted in Qld

Interesting PRD Nationwide survey result recently published ties in with earlier surveys re the very limited acceptance in Qld. of listing without a price, whether that be POA or the auction process. In Qld, only 25% of sales are conducted via auction.(Sunday Mail survey September 2011 found in Newsroom on my website) Current auctions in the Coolum area are returning very low & in some cases record low prices for those that do sell, perhaps illustrating that only the savvy bargain hunters attend and unsuspecting sellers come to believe prices on offer are the full extent of the wider market. Clearance rates, ie both before and at auction, for houses in the last 12 months Coolum area is 17.8%, for the Sunshine Coast 22.6% (as per domain.com.au advice) My earlier blog explores this proposition of under-selling, which when coupled with a growing number of distressed sales, forces buyer expectations down and prices lower. Perhaps the most serious impact of this is that valuers, who are under enormous pressure from banks to get values right, are hitting low, taking the low end examples as indicative of a wider market value. These times call for the experienced real estate agent with strong marketing and negotiation skills to bring sense to the sale process and produce a win-win for buyers and sellers. STOP PRESS - recent media articles available on my website at www.geoffgrover.com.au "Recent home buyers to find equity magic has vanished" Domain 26th May - the recent history of high price housing growths leading to bumper rises in equity are over for at least 10 years as buyers purchasing in the last 4 or 5 years have found "Properties with no asking price deter buyers" Real Estate Business May 2012 - properties marketed without a fixed price (read auctions) are negatively affecting the pool of buyers according to a poll by PRD Nationwide with responses mainly from Qld & NSW.