Spring’s Auction Frenzy In Avalon & Palm Beach

By Jonathan Fletcher

In Avalon and Palm Beach this spring we have seen a rising trend towards property owners selling by auction.

With low stock, low interest rates, increased buyer demand and increased clearance rates it’s no surprise some buyers are starting to feel the frustration of missing out.

Sydney’s auction climate is hot right now. Currently the clearance rate for auctions in Sydney is 76%, a huge upward trend from this time last year which was 46%. The Northern Beaches reached heights of 81% clearance rates this spring – its highest since March 2017.

While clearance rates are high not all properties stack up the same. Here is a quick snapshot of four properties I sold by auction this spring.

47 Norma Road, Palm Beach

With magnificent sun-drenched views spanning both Palm Beach and Whale Beach, this classic Petitt & Sevitt home shared a unique mix of views and future potential.

Sale method: Auction
Guide price: $2.9 million
Number of inspections: 59
Contracts issued: 9
Registered bidders: 3
Sales result: $3.825 million sold at auction

64 Dolphin Crescent, Avalon Beach

This renovated home combined contemporary beach house style with smartly finished interiors. It’s an exceptional entertainer within a stroll of both Whale and Avalon beaches.

Sale method: Auction
Guide price: $2.05 million
Number of inspections: 67
Contracts issued: 3
Registered bidders: 3
Sales result: $2.25 million sold at auction

132 Whale Beach Road, Whale Beach

A holiday home with impressive ocean views from Dolphin Bay to the Central Coast, with contemporary interiors with a distinct mid-century vibe.

Sale method: Auction
Guide price: $2.675 million
Number of inspections: 53
Contracts issued: 6
Registered bidders: 4
Sales result: $2.8 million sold at auction

96 Iluka Road, Palm Beach

Coming to market for the first time in 80 years, this beach cottage claimed a highly coveted waterfront position on Snapperman Beach.

Sale method: Auction
Guide price: $8 million
Number of inspections: 55
Contracts issued: 6
Registered bidders: 2
Sales result: $8.25 million sold at auction

FIND OUT WHAT YOUR PROPERTY IS WORTH HERE

As we fast approach the end of 2019, we are seeing an increased trend from buyers towards pre-auction offers. This is being driven mostly by a fear of missing out (FOMO) at auction and the looming deadline of 2019’s selling season coming to an end.

Many people have sold and need to buy or otherwise consider renting for short or long term periods. Others such as young families moving to the area want to secure a purchase so they have certainty about new year school placements for the kids. For example;

2 Neweena Place, Avalon Beach

Tucked into a private cul-de-sac setting, this single level home had so much to offer; a sunny northwest aspect along with a highly versatile floor plan plus a pool.

Sale method: Pre-Auction
Guide price: $1.4 million
Number of inspections: 79
Contracts issued: 7
Registered bidders: NA
Sales result: $1.61 million sold prior to auction

Buying at Auction

I meet many buyers that are cautious about the auction process. It can be stressful, however, it tends to be the most transparent and fair way to buy property. You can see the competition, you know where you stand, and everyone who has registered is given the chance to bid.

Here are three things I encourage my buyers to consider in this current auction climate

Be upfront with the agent

If you like a property, in this market you can be sure others feel the same way. Being upfront with the agent allows them to be as helpful as they can to facilitate your interest. Don’t wait for a phone call from the agent informing you the property has sold to someone else and then say, ‘why didn’t you let me know’. A good agent won’t leave any stone unturned but don’t take the risk. Being upfront with your intentions from the beginning will place you with the best chance of being kept fully informed of progress.

Be prepared

If you like a property and you’ve been upfront with the agent, now start getting your ducks lined up and do your due diligence. You will want to request a contract for sale from the sales agent which you will send to your conveyancer for review; you may purchase a pest and building report and see if there are any issues with the property that may affect your opinion of the properties value; and negotiate any terms with the sale you want prior to the auction, typically these terms relate to the deposit amount and the settlement period.

Be on the front foot

If you’ve done both of the above you are on the front foot. You may decide to avoid the auction and if the owners are open to it, instigate a pre auction offer. If your intentions are to attend the auction and another buyer makes a pre auction offer, you are ready to add your own offer for consideration.

If you’d like help buying at auction or would like to start the search for your perfect Palm Beach or Avalon property, contact me today. Wondering what your property is worth – start here.