Fairlight’s real estate market continues to grow strongly and Shane Spence Real Estate is leading the way.
As we all know from media reports, the real estate market has been jumping for the past 3-years on the back of historically low interest rates. Whilst it is difficult to predict the future, one would have to say that with the uncertainty in the world economy created by Britain’s decision to leave the EU, there will be no immediate pressure to increase interest rates for the foreseeable future. It is more likely that interest rates will remain steady or fall further.
On Saturday 25 June Shane Spence Real Estate had the opportunity to auction a property for one of our long term clients. AND we didn’t let them down!! In fact we have created quite a bit of a stir in the local market having set a record for an unrenovated 3-bedroom, 1-bathroom semi-detached cottage. Just for comparison sake, not the mention bragging rights, I have listed all of the sales of 3-bedroom houses sold in Fairlight in 2016 to date. Whilst our price is not the highest price for a 3-bedroom house, those of you who know the local area and appreciate the price difference between a semi and a freestanding house, will recognise the significance of our achievement– source Corelogic.
20 Rosedale Avenue, Fairlight Sold After Auction $2,250,000
Stone Real Estate 3-bedroom, 2-bathroom, 1-parking Renovated Freestanding House 53 days
24 Arthur Street, Fairlight Sold Prior Auction $2,200,000
Cunninghams 3-bedroom, 2-bathroom, 1-parking Renovated Freestanding House 12 days
26 Parkview Road, Fairlight Sold At Auction $2,000,000
Shane Spence Real Estate 3-bedroom, 1-bathroom, 0-parking Unrenovated Semi-Detached 28 Days
38 Francis Street, Fairlight Sold After Auction $2,000,000
LJ Hooker 3-bedroom, 2-bathroom, 1-parking Renovated Freestanding House 72 days
15 Clifford Street, Fairlight Sold At Auction $1,890,000
LJ Hooker 3-bedroom, 2-bathroom, 0-parking Renovated Freestanding House 30 days
27 Herbert Street, Fairlight Sold Prior Auction $1,830,000
Stone Real Estate 3-bedroom, 1-bathroom, 0-parking Freestanding House 12 days
212 Arthur Street, Fairlight Sold Prior Auction $1,751,000
Cunninghams 3-bedroom, 2-bathroom, 1-parking Renovated Freestanding House 7 days
50 Hilltop Crescent, Fairlight Sold After Auction $1,750,000
LJ Hooker 3-bedroom, 1-bathroom, 1-parking Freestanding House 190 days
265 Sydney Road, Fairlight Sold Prior Auction $1,750,000
Red Property 3-bedroom, 1-bathroom, 0-parking Renovated Semi-Detached 9 days
28 Austin Street, Fairlight Sold Prior Auction $1,650,000
Stone Real Estate 3-bedroom, 1-bathroom, 1-parking Renovated Freestanding House 21 days
22 Wattle Avenue, Fairlight Sold Prior Auction $1,600,000
Red Property 3-bedroom, 1-bathroom, 1-parking Freestanding House 25 days
This is not only a great result for our vendors; it is also a great result for the local market and validation of our marketing process. We have long held the view that many local agents have been selling their vendor’s properties short and denying them the opportunity of maximizing their sale prices by taking early offers prior to auction. Whilst this is often justified on the basis that the offer accepted was too good to refuse and that a bird in the hand is worth two in the bush, I think blind Freddy can see that in a seller market the best option for vendors is to take the property through to auction day and create a competitive environment.
Interestingly, I have found that most buyers prefer this scenario as well. The Public Auction process, when managed properly is transparent, offers buyers the opportunity to complete their due diligence in a timely manner and allows all buyers the same opportunity to compete. Conversely, converting a Public Auction to a Private Treaty type sale mid-stream lacks transparency and unduly pressures buyers into making hasty decisions; which in turn can cause some buyers to drop out of the process or restrict their value of their offer with detrimental effect to the price achieved.
So the next time you hear an agent spruiking their achievement that they have sold a house in 4-days, 11-days or even 15-days, ask yourself the question if they have really search the whole market as efficiently as they could have and; have they really done the best job of selling the property as they might have.
Shane Spence of Shane Spence Real Estate has been Fairlight’s leading real estate agent since 1997.