Bidderman 2.4

by Gina Kantzas, Mal James, Simone Clarke, Kathy Russell, Phoebe James, Randall Smith, Maddie James, Ellen Russell, Catherine Ross, Jo Gallagher

Saturday, February 27th, 2021

Ready to bid

Her first auction. Her first bid – $5,000,000 and we are away @ 62 Kinkora Hawthorn with Maddie James. Thank you to Phil de Fegely, Richard Earle, Tim Picken, Simone Clarke, Chris Barrett, Campbell Ward and Chloe Quinn.

More high calibre women are needed in real estate. Better people managers, better negotiators, more empathy with the decision-makers.

 

If you don’t have more than a token female on your public negotiating team, you’re missing a trick and starting behind the eight ball.

 

It’s about more than equality, image, political correctness – it’s about your result.

Bidder focus

Today was not quite as robust as last week (91%) with 75% clearance, making an 83% average clearance rate on our 3 weekend 100 auction test to date.

 

STRONG.

 

Today we are focusing on Bidderman or bidders per auction. This stat when combined with clearance rates gives you the true market picture.

 

Today at the 32 auctions we attended, we counted 77 bidders or 2.4 bidders per auction.

 

RISING.

The winning bidder tells you something, but the wounded underbidders tell you more.

For instance, at my first auction for the day at 62 Kinkora Road Hawthorn, there were 4 bidders and the home ended up $1.25million over the top end of the quote, at $6,550,000.

 

Although that says a few things, it also tells you there are still 3 bidders at or near this level looking for a home. It is human nature, that all things being equal, they will go harder next time – we call them wounded underbidders.

 

A stronger example of wounded underbidders: at least 9 buyers are still looking in Hampton for the same $2m to $3m home after 2 auctions today.

 

It’s the wounded underbidders that are a large driving force in any rising market – they push the prices up, they are emotional, they are in pain and next time most will pay more to avoid that pain.

 

Oh c’mon, how many of you who have recently missed out, are now on higher budgets than you were six weeks ago? Yep, the wounded underbidders drive the frenzy in a rising market.

Bidderman history

Bidder measurements.

  • Less than 1 bidder per auction and we are in a recession.
  • Approaching 2 bidders and we are in a rising market
  • Consistently 2.5 to 3 bidders per auction across the board and history shows us we are in a roaring market and prices will rise whilst this stat remains current.

Bidding highlights

Geographic Bidderman – Boroondara continues to be on fire and why? The return of the Aussie Underbidder of Asian background. Back in force. Bidderman was well on the way to 4 today – 4, that is buyer scary. This geographical market is very hot – no question.

Boroondara Bidders today: 4, 7, 2, 3, 2, 3, 5, 3, 3, 5 and two bought befores

Dollar Bidderman – Hampton and the $2m to $3m price range – 11 bidders – that’s at least 9 who didn’t buy, who will be looking again next week. This is a big issue if you are trying to buy a half-decent home at this price level. This dollar segment is hot – no question.

Bidder Spread – Drill down to the duck auctions. They are at our limit, where we say it is an across the board even market – this market may prove to be more volatile than the headline numbers portray. Drill down stats can lie, so not sure about the evenness of the market issue yet. 

CLEARANCE RATES in the 70 and 80 percents tell us the market is STRONG.

 

BIDDERMAN @ 2.4 across a wide range of auctions tell us the market is also RISING.

Kew

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17 Sackville Street, Kew

Agent: Peter Vigano, Jellis Craig

Open: $3,600,000

On Market: $3,910,000

Under Hammer: $4,001,000

Bidders: 5

Crowd: 80

Lots of chuckles and mutterings under masks during this protracted auction. Bidding halted at $3,825,000 before taking off in $10,000s. A newcomer stepped in at $3,920,000 after it was announced on the market. A string of $1000 rises with big pauses in between unfolded in the final stage and squeaked the price over the $4 million mark.

Malvern

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26 Parslow Street, Malvern

Agent: Fraser Cahill, Marshall White

Open: $3,200,000

On Market: $3,640,000

Under Hammer: $3,675,000

Bidders: 3

Crowd: 120

A large crowd of 120 people lined Parslow street, Malvern, clustered around the many cars and Plane trees with coffees and dogs and all looking very neighbourly. Fraser Cahill from Marshall White placed a vendor bid of $3,200,000 and although the crowd was slow to get going, two bidders quickly drove the price to the reserve of $3,640,000. A third bidder then helped the sale to the final, winning bid of $3,675,000 and a delighted young couple with a baby kissed while everyone clapped.

Hawthorn

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56 Elphin Grove, Hawthorn

Agent: Stuart Evans, Marshall White

Open: $3,700,000

On Market: $3,900,000

Under Hammer: $4,425,000

Bidders: 3

Crowd: 80

The auction started with a strong opening bid of $3,700,000. Shortly after, the second bidder was in play and the property was officially on the market at $3,900,000. With no half time break required, the third and final bidder swooped in to buy the property for $4,425,000. 

Albert Park

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74 Mills Street, Albert Park

Agent: Simon Gowling

Open: $3,200,000

Pass in: $3,350,000

Result: Sold After ($undisc)

Bidders: 2

Crowd: 120

A noisy, large crowd fell silent once the auction began. The property was passed into Bidder one, who had lack luster competition from Bidder two. Negotiations moved inside. 

South Yarra

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18 Rockley Road, South Yarra

Agent: Justin Long, Marshall White

Open: $4,500,000 VB

Pass in: $4,500,000 VB

Bidders: 0

Crowd: 15

Just 15 people gathered for the auction in Rockley Road, South Yarra. Justin Long of Marshall White was in full persuasive flight to the audience, highlighting the potential and position. A vendor bid of $4,500,000 was tabled, and although he wanted just a rise of $20,000, no bids were placed and the property was passed in.

Glen Iris

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22 Park Road, Glen Iris

Agent: Michael Millington, Shelter

Open: $2,400,000

On Market: $2,800,000

Under Hammer: $3,010,000

Bidders: 7

Crowd: 85

Bidders are dotted all about and enter at points along the way, keeping the price rolling on in a steady rather than feisty auction. Michael Millington proudly announced the home as having reached ‘three, triple zero, triple zero’. A couple more $5000 bids saw it soon knocked down.

Hampton

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46 Retreat Road, Hampton

Agent: Jenny Dwyer, Belle Property

Open: $2,300,000

On Market: $2,600,000

Under Hammer: $2,872,000

Bidders: 6

Crowd: 75

The bidding was quick to start and began at $2,300,000, Bidders continued to outbid one another with three more joining and the property selling under the hammer to the final bidder for $2,872 000.  

Port Melbourne

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19 Rouse Street, Port Melbourne

Agent: Kaine Lanyon

Open: $1,550,000 VB

On Market: $1,770,000

Under Hammer: $1,770,000

Bidders: 5

Crowd: 40

Kaine Lanyon began with an opening bid of $1,550,000 and that’s all it took. Bidders 1, 2, 3 and 4 had a crack at taking the title but it was Bidder 5 with their one and only bid that took home the keys.

Hawthorn East

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31 Hastings Road, Hawthorn East

Agent: Richard Winneke, Jellis Craig

Open: $2,500,000 VB

On Market: $2,760,000

Under Hammer: $3,027,500

Bidders: 3

Crowd:35

A bid of $25,000 was rejected. Only $50,000 rises on the opening vendor bid were sought. Two bidders eventually moved until a firm ‘Two point seven’, was called out by a third bidder. This proved to be his only bid and he soon