Barfoot & Thompson achieved overall sales rate of 32% at latest auctions

Barfoot and Thompson sold 17% at latest Manukau auction, 34% on the North Shore

Property

Barfoot and Thompson sold 17% at latest Manukau auction, 34% on the North Shore

13th Jun 17, 11:23am by Greg Ninness

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.

**Results of Barfoot & Thompson Auctions: Week ending 9 June 2017**
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 Not sold includes properties that remained unsold by 5pm the day after the auction, and those that were withdrawn from sale or had their auction date postponed.

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9 Comments

by PaulO | 13th Jun 17, 11:50am 1497311457

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.

by Davo36 | 13th Jun 17, 12:26pm 1497313607

The auctioneers get paid regardless, but B&T will have their own anyway.

Vendors go for auctions because a) They are agressively pushed by the agencies, and b) It appeals to their greed. With a price, that's all they'll get, with an auction they may get more.

by bw | 13th Jun 17, 12:41pm 1497314493

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.....

by Chairman Moa | 13th Jun 17, 1:06pm 1497316001

Correct me if I am wrong but I believe the seller has to stump up Auction fee regardless if the property sell or not, this is differ from Commission fee. Auction fee is ranging from 2-5K

by Jase77 | 13th Jun 17, 1:14pm 1497316484

Some agents charge auction fee, can be $500-$1K. Barfoots don't but they still charge for marketing up front.

by Jase77 | 13th Jun 17, 12:27pm 1497313634

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.

by J.C. | 13th Jun 17, 12:55pm 1497315328

Property auctions only become "news" during bubbles. Statistically, these real estate "reports" are as nutritious as GIB board.

by mvgsmf | 13th Jun 17, 1:13pm 1497316403

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.

by Conrad | 13th Jun 17, 2:12pm 1497319947

There's a whole raft of sites online trying to do this. I'd love to see some sales figures for private sales. I suspect they're growing pretty quickly.