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Aussie Real Estate Podcast

$450K Above Reserve - McGrath

15 Jul 2022

Transcription

Chapter 1: What is the main topic discussed in this episode?

2.596 - 25.45

It's The Real Estate Podcast across every state, city and town of Australia. And welcome to another episode of The Real Estate Podcast, available on iHeartRadio every morning, also on Spotify and Apple and wherever you get your podcasts from. Well, the weekend has arrived. It's Saturday morning, the 16th day for July for 2022.

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And if you've got properties to view today or auctions to attend or even negotiations to start, as always, good luck for your weekend of real estate up and down the country of Australia. Well, coming up this morning, we're talking about a Ramsgate Beach townhouse that got a lot of people talking this week about the $450,000 over-reserve price it generated at auction time.

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And we'll be talking with the selling agent to find out more. The positivity of that sale is still hovering in the market with people in the street and the suburb feeling great about their property prices. But is it transferable to their own properties? Well, we will discuss that very question.

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If you're celebrating a birthday today, you're sharing it with funny man Will Farrell, who is turning 55 years young. Oh, and I see on this day, Amazon.com sells its first book. The e-commerce website was founded in 1995 by Jeff Bezos, who could never have imagined that years later in 2022, he would propel William Shatner, Captain Kirk, into space using one of his rockets.

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and Bezos grew up watching Star Trek. I mean, the weirdness and the long shot of that happening is incalculable. Grab your coffee and switch on your real estate breakfast every weekday morning from 6.30. It's the main centre forecast with propertybuyer.com.au. And let's check on your weather around Australia across this weekend.

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First, we go to Sydney, expecting a dry day with cloud cover and a high of 17 degrees. Melbourne, expecting a late shower with windy conditions. 13 degrees once again. How many days? The needle is just stuck on 13. Brisbane, a sunny Saturday, 21 degrees is your forecast high. And Perth, one or two pieces of rain today and your high 21 degrees.

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It's your weekend real estate breakfast, a serial-sized podcast about what's happening in your local backyard, every Saturday morning on The Real Estate Podcast. Well, we've been talking about the two-sided coin, which is the property market right now, especially for Melbourne and and Sydney. You know, things have changed. They've twisted. They've bounced around on any given day.

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A vendor is pleasantly surprised and grateful that their property has sold above market forecasts, while in other cases, unfortunately, vendors aren't having a great outcome. Property didn't sell back to the drawing board, which is probably code for let's wait until summer or let's not sell at all and hold on for a

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Well, let's welcome into the Breakfast Podcast, Agent Michael Flavares from McGrath's in St. George area of Sydney. And a very good morning to you, Michael. Welcome to the Real Estate Podcast. Good morning, Craig, and thank you very much for the opportunity. No worries. Great to have you on.

Chapter 2: What recent auction result surprised the Sydney property market?

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And a couple of days ago, we were talking about Sydney's clearance rates versus properties holding their own. How are you reading the attitude of the vendors going to market with price expectation in and around the St. George area of Sydney right now? We have quite mixed feelings across all property owners at the moment.

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They're very skeptical whether they will go on the market and whether they're going to meet a good number of buyers and to the level that the buyers will create the right competition for them to get the best possible price.

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If you have the right conversations with your property owners and you give them the right examples that the market is still doing all right, it's not just all about the negativity around the interest rates, then definitely whoever goes on the market right now, there's a good number of buyers that are looking to buy real estate.

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If the right time is for them, definitely is the right time to go on the market. It's a tricky situation, of course, because vendors will see the clearance rates and they'll be thinking, oh, that doesn't look good. And then on the other hand, they'll see some of these prices going hundreds of thousands of dollars over expectations.

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And it's trying to balance all of that out with those one-on-one discussions with the vendors. I want you to tell me a little bit about Ramsgate Beach Townhouse. This got everybody talking, people reporting on this. It's another property in Sydney carrying a price well above expectations. So tell us a little bit about what happened. Yes.

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Ramsgate Beach definitely was one of the auctions that blew everyone away. It was an unreal auction result. It went way above the reserve, $450,000 above the reserve, a result that even now we're going through. the whole process, how the whole auction day rolled, and I still can't believe it.

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Myself and my colleagues, the vendors, even the buyers and whoever had the opportunity to attend this auction, specifically when you see all these auction clearance rates dropping week by week, and then this auction comes along and then sells 450,000 above reserve. We had 13 registrations and 24 contracts during the four weeks.

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The amount of people that came to the auction, I was thinking, and I turned around to the auctioneer and I said, what is going on today? Because this just reminds us back before Christmas or even in February and March earlier this year. And now, yes, exactly, the neighbors and they said, okay, well, if this townhouse is now selling for this much, how much is my house worth?

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Everyone's expectations are obviously, again, way beyond then how much they were thinking their property worth. And I can't blame them. Three-bedroom townhouse sells for almost similar price for a three-bedroom freestanding house in the area. This resort definitely created a new benchmark in the area.

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