I don’t think I’m on my own when I say that it seems the only story in the world right now, whether you care about the outcome or not, is the US election. We are witnessing extraordinary events, but I recognise you might think I’m drawing a long bow when I say there are key elements of the US election that are a metaphor for the Sydney property market. Bear with me while I explain….
I know it seems a stretch but when you think about it the US election result is all about the numbers. And so, it is in residential real estate. Individual votes, postal votes, and electoral college votes on the one hand, interest rates, perceived property value and market participants on the other.
And just like in the US election those very same numbers can mean different things to different people depending on the outcome you are hoping for. It is a tale of two perspectives.
See where I’m going here?
The question is how do you find a consensus? Ideally, an election will deliver an outcome if you are in politics whereas if you are in residential real estate, I believe the best way to achieve a positive outcome is an auction.
An auction will drive decision making. Parties need to be interested and motivated enough to show up and sign up, just as in an election people need to register and they need to vote.
Like an election, an auction relies on participants having access to clear, factual information. I’ll stay away from discussion of elections and ‘fake news’ but will emphasise a good agent will always provide their clients with all the facts they need to feel empowered enough to make an informed choice about buying or selling.
An auction is the most transparent platform to for parties to demonstrate what they consider to be a fair value for a property and are guided by clear rules and regulations to protect participants. Elections have a different level of transparency and regulation, but I think you get my point.
And finally, an auction is the clearest way to find a potential consensus. The auction process puts all the cards on the table so bidders and the vendor can then make their choice whether or not to proceed. In an election, voters get to choose.
And just like an election, participation really matters. The atmosphere at an auction will change if there are multiple registered bidders but never forgot that every bid counts, and one bid might secure the result.
Finally, like any election, an auction may not deliver the outcome all parties wanted but it will deliver an outcome nobody can dispute. That’s the ultimate validation of the process. An experienced and trusted agent will use an auction campaign to support their clients to navigate through differing perspectives and in the end identify a clear and decisive outcome. Make sure you take the time to elect the right agent.