If you’re keeping an eye on Brisbane’s real estate space (as most homeowners do!) you’ll know that auction clearance rates across the city are down. What rate is that, you ask? Well according to Domain:
“Auction clearance rate is the percentage of properties sold at auction on a particular week or month.”
Basically if clearance rates are high, most properties being auctioned are reaching their reserve prices and getting sold on the day. If they’re low, then properties aren’t meeting the reserve price and the auction is unsuccessful.
There are many factors why clearance rates are down in Brisbane, which we won’t go into depth on today. What we do want to discuss is how real estate agents can maintain high success rates at auctions when most properties aren’t managing to reach the reserve prices. What can be done to beat the trend?
At The Henry Wong Team® we manage to maintain exceptionally high auction clearance rates, consistently meeting reserve prices and getting homes sold on auction day. We want to share with you some of the ways and means in which we go about this.
How to Consistently Meet Auction Reserve Prices
For a start, our team is 100% committed to maintaining an extremely high standard of excellence across all that we do. We love success and we love achieving great results for our vendors, so everything we do is geared towards that. Here is an idea of our approach:
We Target Out of Area Buyers
When a real estate market is running hot, agents get away with throwing the listing up on realestate.com.au or domain.com.au and being able to achieve a good result with very little effort. When the market gets a little trickier, those agents are going to have a difficult time. There simply isn’t enough competition being drummed up by local buyers typing the suburb name into the real estate portals.
Out-of-area buyers who haven’t heard of say, Wishart, simply won’t find the listing. To generate interest in that property, you need an agent who present the opportunity to out-of-area buyers and generate wide-ranging interest in it. That way, on auction day competition will be more intense. But how to generate that interest? The Henry Wong Team® knows how.
For years now we’ve been building a network of buyers from Queensland, Australia and overseas. This includes very many affluent Asian buyers looking to invest in Australia for themselves or their children.
We work hard on relationships with our network, we build their trust and we establish mutual respect. So, when we go to an affluent buyer in China with an opportunity to invest in Brisbane, they know it’s a legitimate opportunity.
Being a bilingual team, we have also established strong network with local Asian communities, in Brisbane and interstate. We also have migration agents, financial planners, accountants, developers, and buyers interested in blocks of units within our network. We also deal with over 35 buyers agents.
We Leverage Our Social Media Reach
How do you achieve massive online coverage of a listing that isn’t reliant on the main real estate portals? You build a massive social media following and leverage it for maximum exposure.
The Henry Wong Team® has gained a large cyber following over the years, including:
– Over 12,000 Facebook followers
– Over 4,000 Instagram followers
– Over 1,000 LinkedIn connections.
That’s the largest following of any real estate agent on the southside of Brisbane. It means we can place every property we list that’s going to auction in front of more buyers than anyone else. As the property gains traction through sharing and ‘liking’, it exponentially reaches more and more people too.
We’ve built up a database of over 14,000 contacts that we email on a bi-monthly basis. This keeps them in the loop on what’s happening with our team, letting them know about any listings or auctions we have coming up. It’s a great way to get initial traction with the marketing of a property and has resulted in many sales before a home even makes it to market, let alone auction.
If you’d like to chat more about the current real estate market and how we are maintaining high auction clearance rates at The Henry Wong Team®, please get in touch. We’d love to answer your questions and give you any insights you’d like into our systems and processes.
Until then, have a great day!