June 07, 2017

Auction vs Private Sale Case Studies

104 Whittakers Lane | Riddells Creek

List Price - $570,000 - $590,000
Days on Market - 14
Listing Type - Private Sale
SOLD - $582,000

Red Creek was asked to appraise the property along with some other local agents but the Vendors were convinced Auction was the best course of action by a local franchise. The selling agent, a local franchise, listed the property with an Auction guide price of E.S.R $600,000 - $650,000 and the potential to subdivide. The franchise unfortunately listed the property particulars incorrectly, the subdivision information was not accurate and it was listed in the wrong price range, therefore, they were not able to secure a sale on Auction day. With a follow up reduction down to $590,000 the Vendors felt the property had been damaged at Auction and therefore interest from buyers had dwindled. Red Creek was then engaged to sell the property at the originally appraised price of $570,000 - $590,000. What was important for the Vendors here was to secure a sale within the price range in a timely manner as this was an emotional sale. We went to work and staged the property which instantly made an empty home feel lived in. We marketed out the property to the local area, in the online channels and through our buyer and investor database. We received an offer of $520,000 from an interstate buyer who had seen the property listed with the previous agent. We encouraged him to inspect and at the second OPEN after some competition he secured it for $582,000


4 License Road | Diggers Rest

List Price - $365,000 - $390,000
Days on Market - 3
Listing Type - Private Sale
SOLD - $400,000

Listing their property with the right agent for these Vendors was critical. They wanted to see great results in a timely manner with the best communication. They were being steered towards Auction by other agents that work in the area but felt the 4 - 6 Week campaign in the run up was just too long. They also felt the auction guide price given by other Agents of $335,000 - $360,000 was not only a risk they didn't want to take but also misleading to the potential market. They wanted to take advantage of a HOT market and open the marketing and buying channels to all buyers not just to buyers that could go "unconditional" straight away. This significantly increases the chance of not just selling, but selling at a great price. Once they had chosen us as their preferred agent we got to work marketing and promoting in the local area, in the online channels and through our buyer and investor database. We had 38 groups of buyers through the OPEN for inspection 2 days later. On a Sunday at 1pm it was SOLD after a competitive price war and reached an impressive but very honest $400,000 in Just 3 days.