Auctions continue to prove an effective strategy in a market where competitive tension between buyers is high, resulting in premium prices for certain properties.
Case in point is a 6,964m2 development site at 1 & 11 Lalina Avenue, Tweed Heads West which Team Grbcic took to auction last weekend.
The property has three existing homes and the potential for a subdivision or townhouse development which could yield five residential lots with multiple dwellings.
A four-week marketing campaign attracted 65 enquiries and resulted in multiple pre-auction offers. The highest offer and price feedback prior to the auction was $2,400,000.
Six buyers registered for last Sunday’s auction onsite, where bidding kicked off at $1,800,000. Four active bidders pushed the price past the reserve to a winning bid of $3,200,000.
That price is $800,000 higher than the feedback during the campaign and any written offers.
Although the most likely buyer was a developer – who would have a higher and best use for the site – this strategy ensured that we captured all buyers in the marketplace.
Come auction day, multiple bidders created an environment where we would achieve the best price for the vendors on clean terms, with a short settlement period.
If you would like expert advice on the best strategy to sell or lease your commercial asset in the current market, please reach out to our team today.