Through your McDonald Real Estate Sales Consultant you can make a pre-auction offer to the vendor!

According to official REIV statistics so far in 2012, 18 per cent of all auction sales have been sold before the day of the auction; this compares to 19 per cent at this time last year. It is interesting to note that over the past six years, the proportion of homes sold before auction has reduced from around 23 per cent to the present-day 18 per cent.

Over that time there has been a 20 per cent chance the home will sell before – so, if you are interested, it is sensible to consider making an offer, or you might miss out.

With that in mind, there are a number of advantages in making an offer, even if the offer fails.

A successful offer can allow you and the vendor to avoid the auction itself. It is also the case that, even if your offer is unsuccessful, the vendor is less likely to sell to a higher bidder without giving you another opportunity to make an offer.

If you do make an offer, it has to be an attractive one that gets the vendor’s attention and convinces them not to wait until the day of the auction.

There are several things you can do to make the offer attractive: first, put the offer in writing; secondly, attach a time limit after which the offer expires. In some cases, presenting the offer along with a cheque for the deposit can really show the vendor that your offer is serious and that they may be better off not waiting until the auction.

It is also always advisable to get legal advice before signing the contract of sale.

The orphanage in Cambodia survives by generating much needed funds through the sale of artwork painted by the children in the orphanage, and here’s your chance to help.

On Wednesday May 2 at 7pm at Aspendale Gardens Primary School, a number of paintings from the orphanage will be auctioned in a special “Project Cambodia Auction”.

Michael Choi and his Aspendale Gardens team will be running the auction, and hoping to raise as much as they can for what is a wonderful cause.

We’d love to see you there!

We received dozens of outstanding entries from boys and girls of all ages and with Jameson judged to be the lucky winner, he took home a brand new 18 speed Mountain bike, valued at $250!

In simple terms, this indicates that demand for residential property over the past year reflected the broader state of the economy and that buyers will continue to find that prices will maintain their current levels in the short term.

To summarise the current state of the property market:

1. The property market moves in cycles and now we are in one of stability, with overall median house prices showing no real growth.

2. The last 12 months also reflect both an easing in population growth and improvement in the supply of new homes. The unit and apartment market is also mostly stable.

3. Until the economy and consumer confidence improves, the market is likely to remain as it is now.

4. Buyers and sellers in particular will be watching interest rates very closely over the next quarter.

Most experts agree there are four things you must do to help you get the best possible outcome with a property purchase.

Avoid speculation

You simply can’t risk everything on an guess when it comes to real estate. Decisions must be made on available facts i.e. the long term performance history of a suburb and property type is the most accurate guide of any future outcome.

Study the trends

Before finalising any decision to purchase, you must become familiar with the types of property and areas that are most in demand. Which buyer type is moving into the area – young families, singles, retirees? Why are they moving in? Speak to a reputable local agent who specialises in the area about current and possible future trends.

Location, location, location

Quite simply, location provides the foundation for the value of any property. More than ever before, people are buying a “lifestyle” when choosing their home, so factors like proximity to schools, access to roads and transport and the feel of the local community are all important indicators of the type of living people are striving for.

Aim for capital growth

Property wealth is achieved through capital growth. If you are an investor, always remember that in the long run a property with a higher capital growth profile and moderate rental return will outperform properties with high rental returns in the early years.

Following these simple steps will help you make the choice between an average property and a high quality property that will provide a greater capital growth over time.

Yet week after week there are many disappointed buyers who miss out on buying their dream home or that ideal investment opportunity due to their inexperience with the auction process and a simple lack of preparation.

Here are three simple tips that will help you increase your chances of being the successful bidder on auction day:

Get Involved

As silly as it sounds, it’s important to participate in the auction. Don’t wait for other people to start or you may well risk the property being passed in.  When that happens, the highest bidder at an auction property not sold gets the first and exclusive right to negotiate with the vendor straight after the event. If that’s you, then you could secure the property without any competition.

Be Confident

When you bid at an auction you are there to win! Position yourself in the crowd where the auctioneer and other bidders can see you. Bid quickly and with confidence so you don’t give the other bidders time to think. Positive body language and directing your focus on the competition will give you the appearance of being an informed buyer, knowledgeable about the local market and confident in participating in a process that for some reason scares many people.

Clever Bidding

Do you really want to miss out on your dream home for the sake of $750? Going into an auction with a neat, rounded price limit (i.e. “We’ll go up to $425,000”) is a common approach. A smart bidder will make an odd final bid (for example $426,250) and may just outbid their competitors sticking to a fixed, rounded limit without paying thousands more. Further, while having a budget is important, always remember to be flexible and specific to the ‘feel’ and momentum of the auction as it is playing out in front of you.

Good luck!

The REIV 2011 December quarter median prices confirmed that house and unit prices increased late last year, with a median house price in metropolitan Melbourne of $550,000 – an increase of 1.9% from a revised September quarter median of $540,000.

Demand in both the local residential market and housing affordability improved, due to the two interest rate cuts in the second half of 2011.

“Heading into 2012, there is no doubt that housing affordability has improved with the combination of lower house prices and two interest rate reductions”, commented an REIV spokesman.

“One possible outcome is that the market has bottomed out. But we are really going to have to wait and see what happens with the economy, because it’s the primary determinant on the market at the moment”.

In the December quarter there was very little difference in the performance of the auction and private sale markets. Houses sold at auction recorded a median of $700,000, an increase of 1.4%, while those sold at private sale recorded a 0.7% increase to $478,444.

The performance of the unit and apartment market mirrored that of houses, with the median price increasing by 1.1 per cent to $455,000.

The REIV is not predicting any significant change in the housing market during the March quarter. However with signs that the market may now have bottomed out in 2011 and if there are improvements in economic conditions, we could see further improvement in market conditions from the second quarter of this year.

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McDonald Real Estate Group held its annual Christmas Party and Staff Awards night on Sunday December 11.

Just under 100 staff, family, friends and our commercial partners celebrated with a superb Christmas Dinner and river cruise around Hobsons Bay and the Docklands precinct.

The highlight was the presentation of our Employee Awards for 2011. We congratulate the following winners!

Thong Le from our Springvale team on winning Property Management Employee of the Year

Richard Slade from our Keysborough team on winning Sales Rookie of the Year

Jaymee Le from our Keysborough team on winning Sales Person of the Year

Kerri Skews from our Aspendale Gardens team on winning McDonald Group Employee of the Year