Gold Coast auction clearance rates have slipped as low as 14 per cent in recent months, according to PropTrack. Yet headline numbers do not tell the whole story, says Kollosche sales agent Sam Guo, who is behind some of the Gold Coast’s biggest auction results. 

“The headline numbers seem to suggest that no one is bidding and no one is buying,” he said. “While these figures represent the market in general, they do not reflect what is possible within it.”

He uses his team’s recent auction successes as proof. Of five properties put under the hammer in as many days, they sold four out of the five.

Mr Guo said the result was not an accident or an aberration, nor the product of market conditions suddenly improving.

“What has changed is how auction campaigns must be run,” he said. “The old formula of listing a property, setting a date and sitting back to wait for buyers to compete no longer works.”

He said today’s buyers needed reassurance.

“Buyers still have capacity, but they are cautious and want to be certain that they are purchasing the right property for them, at the right price,” Mr Guo said. “Building confidence must be part of the process, but it takes work.”

The first rule, he said, was to never dismiss a buyer.

“Nobody knows what someone will pay for a home until they have been given the chance to show it, and a buyer who feels brushed off is one a seller will lose for good,” he said.

“Equally, agents should not act as goalkeepers and dismiss offers they feel will not be well received. Every offer helps to build a clear case for the seller.”

Mr Guo said listening was also key.

“A buyer’s opinion of what constitutes value is what counts, not what an agent thinks,” he said. “Finding out why someone wants to live in a particular suburb or home matters as much as explaining why a property stacks up on position, condition and floorplan.”

He said removing hurdles and conditions had also proved effective. With one of their recent auctions, an interstate buyer insisted on a building and pest report and finance sign-off before registering to bid.

“Supplying existing reports and paperwork upfront, and being clear that the owner was genuinely going to sell on auction day, gave them the confidence to not just attend the auction but purchase the property under the hammer,” Mr Guo said.

The recent campaigns also reinforced the danger of assumptions. Mr Guo said some of the properties had thin open home attendances and scant enquiries, yet four to six bidders registered on the day.

“On the highest sale made, the buyer had never stepped foot inside the home until moments before the auction began,” Mr Guo said. “He attended on a family member’s recommendation and outlasted two bidders to secure the property.”

Sellers also have a role to play in their own success.

“If pricing expectations are still being pegged to the market two or three years ago, bidders simply will not turn up,” Mr Guo said. “The current market rewards buyers with the confidence to act, so it helps if those who are selling are genuine.”

He said auction would not be the right choice for every property, and that none of this meant the market was about to bounce back, but sellers should not be spooked by clearance rate headlines.

“An agent who understands the auction landscape, speaks to buyers every week and keeps them part of the journey can still achieve a strong result,” Mr Guo said. “The buyers are still there; they just need confidence that they are making the right decision.”

If you are unsure about a method of sales, reach out to Sam Guo and his team to discuss how to turn your campaign into a success story.