A recent Vendor Advocacy property we had listed for auction is a good reminder to potential buyers about the need to ensure the property they buy has strong fundamentals or is what we call an A-Grade property.
The auction was days away when the Government re-introduced the public auction ban as part of stage three Covid-19 restrictions.
The pre-auction campaign had been going for three weeks before the final inspections changed to “by appointment only”.
What were the Vendor’s choices?
1. Cancel the auction — as did around 200 vendors that weekend
2. Go to an online auction
3. Start an Expression of Interest campaign
4. List as a private sale
The property was above average for the precinct and had many desirable attributes:
- Width at eight metres – 5 meters is the norm
- Above-average accommodation
- Flexible and well laid out floor-plan
- Good street presence
- Just 3.5 km from the CBD
- Close to the South Melbourne Market and Clarendon Street shops
- A nearby park, and recreational amenities
- Public transport close by
The property to this point had enjoyed a solid advertising campaign, and there were potentially three interested parties.
In consultation with the selling agent and the Vendor, we all agreed to stay brave and continue with an online auction. The selling agent came up with a good idea of getting all the interested bidders through the property (as per the COVID-19 guidelines) before the online auction – which helped to keep them emotionally engaged and more accessible for the contract sign-up.
Combine an A-grade property with an accomplished selling agent who was able to convince potential buyers that the process can be trusted and strong results are possible – with the property selling above the reserve.
Sticking to the plan of purchasing an A-grade in property may protect you when markets become uncertain.
To give yourself the best opportunity of having a property that can weather the storm, contact us. ela Property Advocates Guy Angwin 0412 022 998 or Geoff Briscoe 0419 740 351