The rise & fall of the mining boom here in Western Australia is taking some toll on families hit hard by unemployment in the sector as it ripples out through the community!
2 out of every 5 auctions called by Tom Esze Auctions this calendar year to date (Jan-Oct 2016) has been a Repossession-Sale! And these are only the Auctions where the formal Bailiff has been in, owners evicted, Repossession Agent issues instructions to sell to the Real Estate Agent and then its simply a fait accompli.. It doesn’t take into account the many many other private treaty sales & auction sales in Perth where owners are selling out of properties due to financial pressures!
Sellers just get a faster result with the Auction Process as the average Days On Market are sitting at just 27 Days, versus Private Treaty at 73 Days (6 1/2 weeks longer)-Source REIWA October 2016
If you’re an Agent who regularly deals in this space you understand the harsh reality of what is going on out there in the market place! It isn’t pretty, is it?
The upside for you as the Real Estate Agent from the increased volumes of delinquancy sales is there is a larger listing pool to obtain stock from through the Repossession and Mortgage Realisation Agencies issuing stock, but you need to be registered with them to get a look in! So my suggestion is to start googling and let them know you are available to take on the role as Agent in the Auction sale process. An Agent will most definately be appointed… So it may as well be you!
The banks (via the Repossession Agencies) pretty well always go down the path of auction to demonstrate the transparency of sale process in the market place and if it doesn’t sell under the terms of auction (usually 10% deposit and 30 days to settle), a realistic price is then issued and is generally sold in the immediately post auction days or week!
And if you think it’s only happening out in what is coined as “The Mortgage Belt Areas”, think again…. The blue chip riverside suburb of Applecross has the highest amount of “Mortgage Stress” in Western Australia! Check it out for yourself.. https://au.news.yahoo.com/thewest/wa/a/32950418/applecross-tops-home-loan-arrears/#page1
We have a conundrum with the lowest interest in living memory for all Australians, yet the highest delinquancy rates in decades! Check this out for the whole of the country… http://www.news.com.au/finance/real-estate/brisbane-qld/mortgage-delinquencies-hit-a-threeyear-high-with-two-states-and-one-territory-seeing-record-levels/news-story/daab6eda5acd5c6306267f2b2cbce823
Until next week, once twice thrice and cheers,
0411 888 800 firstname.lastname@example.org www.tomeszeauctions.com