Archive for April, 2020

Auction Snapshot | 27 April 2020

With ANZAC Day services conducted remotely this year, Australia’s most significant day of remembrance offered the opportunity for Australians to come together and pay their respects in new and unusual ways. 🇦🇺

For many, lighting a candle in the street and tuning into The Last Post via radio or livestream was a favourable way to mark the occasion. For others, it meant bringing the family together and baking ANZAC Day Biscuits for all to enjoy.

As we look to the future, new data shows that Melbourne’s property market is expected to rebound strongly as restrictions ease. Prior to the COVID-19 outbreak, Victoria achieved record-breaking growth for the March quarter, which saw house prices rise 2 per cent and median house values reach $918,350.

In response, Real Estate Institute of Victoria [REIV] President, Leah Calnan, said ‘Real Estate had a strong start to 2020; property values have reached new heights across the state during January, February and March. Our industry is strong and we will survive Coronavirus. The desire for Victorian real estate is high and when this is over we look forward to more fantastic results.’

In the meantime, it seems that upsizers and first-home buyers are keeping the industry on its feet, with buyers taking advantage of the slowdown in order to either upgrade or enter the market for the first time.

‘Listing numbers are putting a floor underneath prices because there are fewer, so there may be more competition for properties keeping prices steady. It does make upsizing more affordable. It helps people get onto the property ladder too,’ said Domain Senior Research Analyst, Nicola Powell.

For any advice on selling in the current market, please contact me.

Categories: Auction Wrap

Auction Snapshot | 18 & 19 April 2020

The REIV has recorded a clearance rate of 78% for the weekend, which saw 103 auctions and 92 private sales take place, bringing in a total of $133 million for Victoria.

In a recent news editorial, Domain revealed entry-level homes continue to remain active despite broader economic uncertainty across the country.

‘Many first-home hopefuls with secure jobs who have spent months looking for a property and missed out at auctions during the recent market rebound are keen to snap up a place. While they’re competing with others well advanced in their search, few new buyers have started seriously looking, making it a little easier than two months ago,’ writes Domain Senior News Producer, Elizabeth Redman.

As purchasers now find themselves in a buyer’s market, homes at more affordable price points are expected to increase in demand, with record low interest rates and last year’s loosened credit restrictions providing additional support to those looking to enter the market.

In Fletchers news, Fletchers Canterbury Partner & Auctioneer, Steven Zervas – Partner and Auctioneer – Fletchers Real Estate, held a successful auction online on Saturday, which saw several bidders compete for a charming single-level, 3 bedroom home at 6 Epsom Avenue in Epping. A total of 6 bidders and 21 bids later, the home sold under the hammer well above expectations.

Reflecting on the success, Jeremy Desmier, Director & Auctioneer, BA, CEA – REIV, said, ‘it was a great call. Amazing example of rapidly adjusting to change and nailing it! Great work to the Fletchers and Real Time Agent teams that made this online auction possible’.

Results. It’s a Fletchers thing.

Categories: Auction Wrap

Market Update | 14 April 2020

In lieu of online auctions, the long weekend brought several updates for the property industry as families across the country celebrated Easter in isolation.

Following an update to the Consumer Affairs Victoria website last Thursday which saw private inspections for tenanted and occupied properties banned, the Victorian government has now reversed the decision after industry-wide backlash.

Real Estate Institute of Victoria [REIV] President, Leah Calnan, said that the reversal showed the government was willing to listen to the industry about the efforts they were taking to be compliant. ‘They may not fully understand that agents can practically perform their duties with all of the government’s directions. We provide shelter and that’s an essential duty,’ she said.

In order to overturn the decision, 26 prominent real estate agents across Melbourne banded together to sign an email addressed to Premier, Daniel Andrews, State Treasurer, Tim Pallas and Minister for Consumer Affairs, Marlene Kairouz. This included Director & CEO, Bradley Brown, on behalf of Fletchers, alongside representatives from the REIV, Domain and @REA Group.

The email stated, ‘if shelter is a basic human need, then the ability for people to find shelter, which in our society is predominantly through a real estate agent, is paramount’.

In other news, 2/962 Burke Road, Deepdene was sold by my team and I prior to auction over the weekend. The 3 bedroom, sun-filled sanctuary drew interest from young families and keen investors alike, featuring a stylish kitchen with stainless streel appliances, north and south alfresco courtyards and close proximity to schools and cafes.

Results. It’s a Fletchers thing.

Categories: Auction Wrap

What You Can Expect From An Online Auction

An online auction provides an experience as close to an onsite auction as you can get. Aside from the way you participate, by accessing an online auction ‘room’, everything else is essentially the same as what you would experience at an onsite auction.

The auction is conducted by the same rules, it is transparent, there is two-way communication and the potential outcomes are the same. The property may sell under the hammer to the highest bidder, may pass into the highest bidder, or be passed in on a vendor bid. If the property sells to the highest bidder, contracts will be exchanged and a deposit paid. If passed in to the highest bidder, the agent will negotiate exclusively with this party. If passed in on a vendor bid, the agent will proceed to negotiate with all interested parties.

I am interested in a property that has an online auction. How can I bid?

Fantastic! If you are interested in a property, please contact the listed agent and provide your name and e-mail address. You will receive a comprehensive e-mail outlining how you can register to bid, and how you can participate in the process on auction day.

What are the options I have to participate in the auction?

There are multiple ways. You can register to bid and ‘attend’ the auction via a Google Hangout, where you can watch the auctioneer in action. If you don’t have a smartphone or don’t feel comfortable using this option, you can also ‘dial in’, by calling the number provided in the registration e-mail. There is a pin code you will need to enter in when using this function. Finally, you can also visit a link that allows you to watch the bids as they progress, which can be done in conjunction with either of the two options outlined above.

The auction rules will be read out as normal by the auctioneer and can also be accessed by bidders when they register. The Vendor’s Statement/Section 32 can be requested from the agent for your review prior to the auction as normal.

Are the rules of an online auction any different to the usual auction method?

No, the rules are the same. For example, if you’re successful on auction day via an online auction, no cooling off applies.

How do I sign a contract if I’m the successful bidder?

We are fully equipped with offsite auction contract signing, which means our vendors and purchasers can sign contracts from anywhere in the world! Deposit and residual amounts are automatically calculated, as well as settlement terms. You will receive the contracts via e-mail to sign and an executed copy is automatically sent to our office, the vendor, purchaser ad each party’s conveyancer.

How do I pay the deposit if I’m successful?

You will need to ensure that you have a daily EFT limit of at least $5,000 prior to the auction. In the case you are the successful bidder, you will be required to pay a $5,000 deposit immediately after the auction, with the balance payable ASAP. You will then need to immediately email a copy of the deposit receipt to the agent.

How can I arrange an inspection of the property prior to the online auction?

Contact the managing agent of the property. You will receive a short questionnaire via e-mail or text message prior to your inspection to fill out. All inspections are by private appointment, in line with current restrictions in force. If you wish to attend the inspection with a partner, family member or friend, you will need to inspect the property one at a time, in line with current social distancing rules, i.e. one person can wait in the car whilst the other is inspecting.