Auctions Underpinned by Savvy Marketing and Good Service

30/04/2009

Auctions Underpinned by Savvy Marketing and Good Service is a Winning Formula in Mackay Residential Market.

Sales associates Neil and Helena Mani of Ray White Mackay have a phenomenal 80 percent average success rate selling residential property via auction.

The efforts of the dynamic partnership were recently recognised by Ray White, Australasia’s largest real estate group.

Neil and Helena won the Top Auction Listing and Sales Award for Ray White North Queensland in 2008 and Neil was ranked in the Top 3 Agents for Settled Commission Sales.

As an independent contractor within Ray White Mackay, Neil pins much of the duo’s auction rate success on the behind the scenes use of innovative marketing know-how, efficient administration, customer-centric service and the adoption of cutting edge technology during the marketing campaign.

“You need to market your home in the best possible way to get the best price,” he says.

According to Ray White research, days on market for a property sold by auction in 2008 ranged between 30-40 days whereas days on market for private treaty took almost three times longer, averaging 90 – 120 days.

The research also showed that 95 per cent of record sales were achieved from auction.

“Auctions maximise the potential for a property to sell at the best possible price because the marketing focuses on the property’s attributes and benefits rather than perceived price. This means that no price range is eliminated and there are consequently more inspections.”

With a marketing campaign culminating on a designated date, time and place allowing all interested parties to declare their hand, “the auction creates a sense of urgency, excitement and competitive bidding which drives the price up,” Neil says.

If a property is passed in at auction after four weeks on the campaign trail, it’s not a lost cause.

“We use the auction tool to gauge the market before we price a property, the market provides good feedback as to what the market is prepared to pay at that time.”

Having previously worked in the Sydney real estate market for several years, Neil carried through to the Mackay marketplace a belief in the importance of looking after the needs of both vendors and buyers. Neil says it has proven to be a point of difference in the local context. Servicing can involve taking the time to sit down with prospective buyers to help them feel comfortable with the process, putting them in touch with finance, insurance, pest and building inspectors is all in a day’s work.

“We can assist buyers to develop a bidding strategy and let them know what to expect on the day.

“Buyer servicing is critical in this marketplace to provide buyers with service levels that they’ve never before experienced.”

“We pride ourselves on service and we like to talk to our clients on a daily basis,” he says.

What appears to be a contributing factor in the stellar results is the “interactive” involvement of vendors in every step of the process from selecting what photos they prefer, where to place a sign, through to casting their opinion on copy writing.

“We don’t make decisions on behalf of the owners,” emphasises Neil.

Helena as the administration and marketing extraordinaire plays a key role underscoring the record results. Two recent property purchases “sight unseen” were the by-product of an e-newsletter information service that she implemented. The targeted communication containing relevant properties in terms of price and location obviously reached the right prospects who had registered their interest in buying several months ago.

“We are finding that in today’s market, people value receiving information that’s informative and relevant to their decision making. We devote a great deal of time to e-marketing to be able to effectively meet the needs of buyers and vendors,” says Helena.

Three key trends have emerged from first quarter sales results during 2009, Neil says:

1. “Investor confidence is returning” to the Mackay market on the back of cheap cash, stock market turbulence and sustained high rental yields.

2. There is still significant inbound movement from young couples in their 30s moving north from eastern seaboard locations Melbourne, Sydney, Newcastle and Brisbane to fill advertised positions in such sectors as mining and tourism attracted to employment opportunities with higher wages and lifestyle.

3. Predictably in excess of one third of sales were to first homebuyers, 14 percent of whom were keen to have their own dream home built – opting to purchase land.