91% of 463 passed-in properties eventually sold for $41k more, on average, than the highest bid at auction
Thought auction competition was high? It turns out the competition is just as high in the 24 hours after a property has been passed in at auction. New research reveals that passed-in properties don’t commonly sell for less than the last bid.
Our sales data shows that for the 463 properties that passed in and sold after auction, 91% sold for a higher price than the last offer at auction. The average sold price across these properties was $41,659 more than the highest bid at auction.
Agents know this – only 3% say properties sell for less after auction
Vendors and buyers don’t know this – 60% believe passed-in properties sell for less
We also conducted a survey of Sydney and Melbourne real estate agents[1] to gauge their opinion on whether they find properties sell for less than anticipated after they fail to sell under the hammer. To compare these findings, a separate survey of an independent panel of 1001 Aussies who have owned, or been in the market for, a property, was also commissioned by us, in conjunction with leading data and insights company Pureprofile.
The surveys revealed that 60 per cent of homeowners believe a property that is passed in will generally go on to sell for less than the last bid at auction. Whereas only 5% of Sydney agents and 2% of Melbourne agents said all properties sell for less after auction. While, a further half (51%) of agents surveyed said there is just a 1 in 4 chance a property will sell for less after auction, overall, a whopping 18% of agents believe passed-in properties will always sell for more.
Gavl spokesperson and multi-award winning auctioneer, Justin Nickerson
Gavl spokesperon and multi-award winning auctioneer Justin Nickerson, says: “The first 24 hours after a property has been passed in at auction is a high period for property transactions as it allows for conditional buyers to enter the mix. People often want to buy on their own conditions, which can result in a competitive environment during this period, bringing the price up. As the sale becomes conditional, vendors may look to become more firm on their price, as they allow more flexibility with their terms.”
Auctions streamed through Gavl have an added advantage over other properties that fail to sell under the hammer. When users save a property listing on the Gavl platform, a notification from Gavl is sent to them if it gets passed in. This allows buyers to get in touch with the agent almost immediately, to make an offer on the property.
[1] Survey of 118 real estate agents in Sydney and Melbourne by Gavl
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