- The Block achieved a 100% clearance rate. If it were not aired on television, agents would normally say that a 100% clearance rate is terrific. It’s good because they gained a commission. 3 of the 5 vendors were left clearly devastated. Clearance rates are never a true indication of success when selling.
- Once the auction hits the written reserve price, the vendor is compelled to sell. The ultimate goal of agents at every auction is to get the price to reserve, where it will sell. If it does not continue to rise from there, it’s the owner’s loss.
- Creating good theatre and the best possible sales result are separate events. It was compelling and excruciating viewing but a better result could have been achieved if the sales process were not pushed through on the night.
- In 2012 when 3 of the 4 auctions passed in, a higher result was in the week or two post-auction.
- The concept of multiple emotional buyers (afraid of missing out) who just keep on bidding, only happens in the minority of cases. Most of the bidders turned up with pre-determined limits and were not going to exceed that limit. The bidders were considered and unemotional.
- Auctions looks good when they smash the reserve, but the reality is few go this way. If you set a market based reserve, the auction will struggle to go much beyond the reserve because it requires two bidders.
- Renovating for profit is easier said than done. 0nly the professionals can continually make profits renovating. Most people profit from renovating because the market conditions save them. They profit through market increases not renovations.
- To purchase an un-renovated property, pay stamp duty of 4 or 5%, do a cosmetic renovation paying retail price for goods, paying an agent to sell it and hoping for a profit is overly optimistic.
- Michael and Carlene lost control of the sale once it hit reserve. Many vendors don’t realise that once bidding hits the reserve, they are compelled to sell.
- Frank the professional bidder took bidding from $1.35 mil to $1.7 mil in one jump. The buyers knew what the property was worth. He bid $1.7 / $1.8 and $1.9 without hesitation.
- If the under bidder did not turn up, Frank would have bought the property for $1.7 million given $1.7 million was over the reserve. You need two buyers to get an outstanding result at auction.
- The professionals bidders knew not to bid unless it was on the market. On the market being above reserve price.
- The contestants time was not factored into prices, were the tradespeople’s full rate covered in the reserve price etc. There were many costs not even factored into the reserve price.
- The contestants simply experienced publicly what thousands experience privately when it comes to selling a renovation project.