Property Mavens’ Miriam Sandkuhler. Picture: Lawrence Pinder
Melbourne’s spring market could be dominated by private sales rather than the usual auction action — and any auctions we do see will be held online until COVID-19 restrictions ease.
But the change in selling style is unlikely to stop vendors from listing their homes during the busiest property season of the year, experts say.
Property Mavens director Miriam Sandkuhler said buyers who were “waiting for a fantasy market crash run the substantial risk of missing out altogether” in the months to come.
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“Once stage four ends, I am expecting a rise in stock levels, as selling agents are currently preparing their vendors to list and market their property as soon as possible” Ms Sandkuhler said.
“Buyer interest remains strong, due to the pent-up demand leading into what is normally a very busy spring selling season.’
But it was important buyers waited until they could physically inspect a property before buying, the buyer’s advocate added.
“Professional photos can misrepresent the true condition and the state of a property,” Ms Sandkuhler said.
“Good lighting and clever camera angles can provide misleading images, and minimal photo selection may also leave out compromising factors, making them invisible to a potential buyer.”
Private sale negotiations should involve gaining “a clear understanding of price” through market research and finding out why the vendor was selling, she said.
“This insight may allow for greater scope to negotiate favourable terms and price,” Ms Sandkuhler said.
“Be finance approved and flexible with settlement time frames, if it will make your offer more attractive to a vendor.”
Engaging a buyer’s advocate could also help househunters find off-market deals and calculate what a property was worth, she added.
Auctioneer Fabian Sanelli at 19 Meagher Road, Ferntree Gully. Picture: Andrew Henshaw
Real Estate Institute of Victoria president Leah Calnan said a spring market “solely using online auction platforms” may lead to more private sales campaigns across the city.
“But it would also be great for agents to be allowed to facilitate online auctions at their place of business, or the actual property, after stage four restrictions,” Ms Calnan said.
She predicted auction numbers could increase as “restrictions continued to ease”, and remain solid right up to Christmas due to the delayed start to the spring selling season.
EYS Auctions director Fabian Sanelli said when it came to online auctions, Zoom allowed for the best buyer transparency and engagement because registered bidders could see their competitors on the screen.
The director of Australia’s largest independent auctioneering company set up a home studio during Melbourne’s first lockdown, so he could continue to sell properties.
New homeowner Andrew Righe puts the SOLD sticker on the real estate board outside his new property in Glen Huntly, which he purchased in an online auction. Picture: Ian Currie
“I haven’t noticed a drop in urgency from buyers. If anything, I’ve noticed a lot more confidence as people start to understand how the technology works,” he said.
Mr Sanelli said it was important buyers bid “just like they would on the street”, with the same “aggression”.
“A lot of buyers try to sit back online and wait. We’ve noticed our average auction time jump from 27 minutes to 39 minutes,” he said.
Online auctions have reeled in massive results during stage three and four of Melbourne’s coronavirus lockdown.
A new suburb price record was notably set in Macleod, while humble brick homes have exceeded expectations, with a standout being one in Oakleigh South that sold a whopping $305,000 above reserve for $1.24m.
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