In the early 1980s, auctions in Canberra were almost unheard of. Fast forward 30 years to 2012 when Canberra had 600. Within five years the number of auctions quadrupled with 2,500 auctions held in 2017.

This past weekend alone, 75 auctions were held across the city. It’s expected the number of auctions in the ACT will keep growing as local buyers and sellers continue to embrace this method of sale.

For some, auctions can seem daunting and bring on a feeling of anxiety and nerves. But according to John Warren, Sales Agent at Independent Property Group Inner North & City, under the right circumstance, auctions can offer significant advantages when selling your home, which is why more and more Canberra property owners are getting on board.

What is it that makes auctions so lucrative? John shares his top three benefits to selling at auction:

  1. Create competition

An auction creates a competitive bidding environment. If more than one buyer really wants your property they will start bidding higher, so they don’t miss out. This is especially true if your property has unique or hard to find features that buyers are looking for.

John says the more invested a buyer is in a property, the more competitive they are. When a buyer is competitive, they are willing to bid and ultimately pay more to secure the home.

“Throughout the auction campaign, an agent spends a lot of time qualifying buyers. We focus our attention on the buyers who are showing the most interest, communicating with them throughout the campaign and educating them on the sales contract. We provide them with all the information they need so they are prepared to bid come auction day.”

John believes focussing efforts on these buyers ensures a competitive auction as they become more emotionally connected to a property and willing to bid higher to secure it. Competitive bidding amongst potential buyers means that the selling price often exceeds the expected value of the property, maximising profit for the seller.

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Federal Budget 2018 – How Will It Affect the Canberra Property Market?

The Federal Budget was handed down on Tuesday 8 May 2018. As always, it covered a wide range of topics from income tax offsets to spending on infrastructure. And as always, it contains a multitude of measures over almost a thousand pages that few people will ever read in their entirety. Won’t someone think of the forests?

So that you don’t have to wade through all 342 pages (and that’s just the first paper!), we’ve summarised the ways in which this budget will affect the property market.

There are very few direct announcements that affect housing, but several longer term measures that are worth knowing about. These are aimed at increasing individual income, freeing up vacant land and improving infrastructure, all of which could benefit the Canberra property market.

Whether you’re looking to buy, sell, invest or simply stay put, read on to find out the changes that will affect you. Continue reading