Barfoot & Thompson sold almost a third of the properties the agency marketed for auction last week, with 132 properties advertised for sale by auction and sales achieved on 42 of them by 5pm the day after the auction, giving an overall sales clearance rate of 32%.
The lowest sales rate was at the Pukekohe auction on June 7 where none of the properties was sold, while the highest clearance rate was at the Shortland St auction on 6 June where 80% were sold, although both auctions offered less than half a dozen properties each.
At the bigger auctions the sales rates ranged from 17% at the Manukau auction to 34% on the North Shore (see table below).
The results of individual auctions, with the prices achieved on the properties that sold, are available on our Auctions Results page.
| Date/venue | Sold* | Not sold* | Total | Sales clearance rate |
| On site. | 4 | 11 | 15 | 27% |
| 6 June. Manukau. | 3 | 12 | 15 | 20% |
| 6 June. Shortland St, CBD. | 4 | 1 | 5 | 80% |
| 7 June. Whangarei. | 3 | 1 | 4 | 75% |
| 7 June. Shortland St, CBD. | 9 | 19 | 28 | 32% |
| 7 June. Pukekohe. | 0 | 4 | 4 | 0 |
| 8 June. Shortland St, CBD. | 3 | 1 | 4 | 75% |
| 8 June. North Shore. | 13 | 25 | 38 | 34% |
| 8 June. Shortland St, CBD. | 2 | 10 | 12 | 17% |
| 9 June. Shortland St, CBD. | 1 | 6 | 7 | 14% |
| Total | 42 | 90 | 132 | 32% |
| *Sold includes properties sold under the hammer or by 5pm the following day. Not sold includes properties that remained unsold by 5pm the day after the auction, and those that were withdrawn from sale or had their auction date postponed. | ||||
You can receive all of our property articles automatically by subscribing to our free email Property Newsletter. This will deliver all of our property-related articles, including auction results and interest rate updates, directly to your in-box 3-5 times a week. We don't share your details with third parties and you can unsubscribe at any time. To subscribe just click on this link, scroll down to "Property email newsletter"and enter your email address.
9 Comments
What sort of fees does an auctioneer charge - and are the fees applicable if the property passes in and does not sell? With the sales rates from auctions so low, it makes me wonder why people elect to sell by auction and not just list a price from which they can negotiate from.
Vendors also go to auction hoping that any defects in the property haven't been discovered in a pre-purchase inspection. ( How many people get one for the 25 auctions they probably go to?) The words " Not to my knowledge, sir" no doubt ring out loudly across the after-auction discussions.....
Barfoots don't charge vendors for the auction or auctioneer, if it doesn't sell at auction the listing changes to a price or price by negotiation listing for the next 2 months at no extra charge to the vendor. The agents basically push the auction as they have a chance of making a higher commission and because its easier for them. The purchaser must do their DD, and if they buy at auction it's unconditional so the agent doesn't have to broker a deal. I guess the agents are still managing to convince these people to go to auction despite the conversion rate being so low.
Been through this with RE guys...classic sales technique to create a call to action so they can close a sale and move to the next....
1. They "buy" the listing talking up how much they'll get you...i.e. inflate the price
2. Make you "invest" in marketing and auction costs so now you're committed to getting an outcome on the day
3. Create immense pressure on the day of the auction and then tell you "the market has spoken" if the price isn't what the BS'd about in point 1 and try to get you to accept less. (It makes bugger all difference to their commission in reality...)
I cant wait for an industry disruptor to turn this cash-cow upside down - the industry is full of some of the least principled, untrustworthy, shonky people I've ever met in my life. Its a rort.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.