I attended an auction over the weekend in Mosman. Great news, it was an excellent result and I might add, a stunning home. But the reserve price was not in line with the guide price throughout the campaign. The reserve price looked to be $100,000 above the top price of the guide. Last week there was another very successful sale, also in Mosman, although it was passed in at auction at the top of the guide price, but then sold shortly after, I would anticipate again that the reserve was definitely above the guide price. There are under quoting laws in place now but they don't go far enough. For instance the vendor does not have to agree with the agents' appraisal price and therefore the guiding and the reserve price don't have to align! I can appreciate why buyers in our area are so fed up with the whole buying and selling process when there is so much continued game playing. It’s about time that the buying public blacklist certain agents/agencies for this continued under quoting. Then and only then will agencies comply with their legal requirements making it a level playing field for everyone. Interestingly the true independently owned smaller agencies guide according to the Department of Fair Trading guidelines and in line with the vendors' expectations – if you are in the market to buy, targeting those properties should provide you with the smoothest purchase.
Talking of great results, let’s be clear, the market on the Lower North Shore is remaining strong. This weekend recorded a clearance rate of 76.5% on the Lower North Shore. Property is selling and selling well. Supply and demand are still out of kilter. Lack of stock is keeping our prices at a very safe level. If you are thinking of selling and would like little competition, now is the time to jump. Autumn/Winter sales historically offer up the best results. If you are thinking of buying, look closely at the recent results in the local market rather than reading media reports of Sydney or Australia as a whole. Each local market is different and being across those results will assist you in your understanding of values. It is fair to say that this month has produced some great results in Mosman and the Lower North Shore.
Oh, and if you hear an agent say that a property is “Nearly sold” give them a wide berth because it generally isn’t. There is no such thing as a “nearly sale”. Its either sold or not sold!
Posted on 16th May 2018