and just like that another season of the block is over – but never fear, 2017 has been confirmed. a guilty pleasure that to be honest, if we didn’t all watch it they wouldn’t keep making it. but, we love it and we love seeing these brave couples earn life changing figures for their troubles.
after seeing so much uproar on twitter, I decided to debunk these auctions – because auctions happen the same whether they are on TV or not.
first and foremost – the reserves
every auction must have a reserve price set prior to the auction commencing. however, this reserve can be adjusted at any point throughout the auction – this part obviously isn’t applicable on the block.
reserves are set based on market feedback during the campaign, comparable sales, dollar value per square metre etc. there was obviously a difference between all apartments based on their floor space, size of the terrace, room sizes, aspect and of course finishings & quality so yes, poor Will & Karlie did get hit hard with their reserve but it paid off.
now, the all-important auction order
again, another scenario that we don’t really encounter every day but nonetheless it is critical for the couples on the block
deciding on where to go in the auction order should/is heavily influenced by the amount of buyers you have registered for your property and feedback from your agent from open inspections and not so much on your reserve price
there are advantages & disadvantages of each position naturally. a buyer who is emotionally connected to one apartment in particular will aim to secure it no matter where in the order it is. from an investor point of view, if they do in fact all stack up similarly on numbers then going earlier on in the piece is definitely advantageous – fun fact: Will & Karlie’s sold to an investor. there is something lucky about going last though, with situations like the block there can be buyers which just want to buy one and they don’t really care which one and it can see them fight it out for the last apartment – they didn’t win $800k but those boys were stoked!
and last but not least, there is no auction without the auctioneer
no surprises here, but twitter users were not keeping their opinions to themselves on this topic but in saying that it was really interesting to see how the general public felt about the entire process
personality was something that everyone seemed to pay attention to – notably Julia & Sasha’s auctioneers “charm” and Dan & Carleen’s auctioneers, well, lack of.
but it certainly was 5 time block winning auctioneer Damien Cooley for Kim & Chris who got the tweeters tweeting. from where i was sitting he did an exceptional job, he was the only auctioneer who took the bidder aside to talk to them in private at a time when bidding was stalling and the only auctioneer to go inside and speak with Kim & Chris to see how they were feeling and to let them know what his next move was. I’m well aware that the reserve is the reserve and unfortunately it was a case of selling no matter what, but Damien treated Kim & Chris like any of his other clients and guided them through the process.
that is what a great auctioneer does, but disappointingly it was described as “suss”, “unethical”, “illegal” & “disgraceful” by the viewers. put yourself in Kim & Chris’s shoes for a moment and think about how you would have felt and what you would have liked to see your auctioneer do in a time like that.
with that being said, the couples created 5 stunning apartments that have set new records for port Melbourne – i don’t know about you, but i cant wait to see what next year brings.
see all the apartments here
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