Auctions Pay Off for Home Renovators

Auctions Pay Off for Home Renovators

Auctioning the properties from TV One’s Our First Home not only provided for dramatic live-to-air television, it was also the best way to decide the true value of the homes according to Auckland’s leading real estate company.

Peter Thompson, Managing Director of Barfoot & Thompson which sold all three homes under the hammer this week, says auctions are by far the most successful method for selling a home in Auckland.

“Around half of the properties we list are for sale this way, with a high rate of success thanks both to the strength of our auction process and our 1400-strong network of salespeople. For example in March alone we sold 834 auction properties either under the hammer, or by 5pm the next working day. A further 142 were sold in the days post auction.

“While New Zealand has been excited to see the renovations progress, at the end of the day the market had to decide what the real value added was and that’s the great strength of the auction process.

“It is a more reliable method than trying to judge the value of a property in isolation, and the transparency of what is ultimately a public negotiation means everyone can see how much other bidders are prepared to pay, and decide how far they want to go themselves.”

He said this transparency also means that sellers by auction report the best satisfaction in price over other methods of sale. “This is not just about the dollar figure achieved but also because vendors can have confidence in how that figure was reached.”

Despite their significant public profile, the properties from Our First Home were still competing with other properties in the area and in their price bracket. “Our job was to ensure that the homes were well marketed to attract qualified buyers and that potential buyers had all of the information they needed to bid confidently on the night.”

Each home was viewed by well over 100 interested parties, both through open homes held by the listing salespeople and through introductions by salespeople throughout the Barfoot & Thompson network. The number of bidders registered on the night for each of the homes was between 9 and 18 and led to lively auctions, overseen by Auctioneer Marian Tolich.

“It’s also great to see that the Kiwi renovation tradition is thriving through the generations. The results show that with careful planning, budgeting, quality work and attention to what your target market wants, it is still possible to add significant value to properties with renovations.

“In many ways the programme was a celebration of what hundreds, if not thousands, of young people are doing across Auckland and around New Zealand every day to enhance the investment they have made in their first homes, albeit on a more modest scale and over a longer time frame. It is what Kiwi home buyers have been doing for decades.

“Our sincerest congratulations go to all the families – they did an incredible job, and we wish them all the best in their next step up the property ladder.”

ENDS

© Scoop Media