Current low clearance rates suggest vendor price expectations are higher than what buyers are prepared to pay. As such the economic laws of supply and demand dictate buyer demand has fallen. This is evidenced by our data which indicates the average number of physical attendees at auctions in Australia has dropped by over 37% from May 2017 – 2018*.
So clearances rates, auction volume and buyer demand are all trending down.
As an agent or vendor, what do you do?
Market trends suggest depending on potential buyers to attend auctions is not benefitting the vendor. It’s evident a change in approach is needed. It’s time to be proactive and take auctions to buyers, wherever they may be.
More than ever, digital marketing is key to success – listings need to be advertised via social media/sponsored ads to reach prospects to remain competitive. Auctions need to be more accessible to accommodate buyers’ lifestyle and location changes – some have competing priorities on auction day while others live interstate or overseas. Simply blocking out entire days week after week to attend auctions is not always possible.
Enter Gavl.
Each listing on our app increases auction attendance by up to 47% – we’ve tapped into the digital audience and have seen the noticeable demand for accessible auctions. More importantly this audience comprises of verified, authentic and winning bidders. We’re proud that 45 % of applicants approved by agents to bid via Gavl at auction go onto bid via our app**. While not all Gavl bidders are successful they contribute to driving up the price to bring other bidders out of the woodwork. 30% of bidders approved via agents who bid via Gavl successfully buy at auction.
In a housing market that’s slowed, Gavl presents real estate agencies across Australia and New Zealand with new ways to increase auction attendance, attract buyers and get the best price for their vendor. Employing innovation in times of economic downturn and investing in new technologies is one way agents can combat the changes in the market. But don’t just take our word for it. Watch for yourself how Gavl enables a remote buyer to buy via our app.
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