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New research has shown that the home owners myth of passed-in properties selling for less is just that, a myth.
New data showed that of 463 passed-in properties, 91 per cent actually ended up being sold for a higher price despite an audience perception that they sell for less.
The average sold price across these properties was almost $42,000 more than the highest bid at auction.
The data, collected by Gavl and insights company Pureprofile, showed that 60 per cent of vendors and buyers believed that a passed-in property sold for less.
This was despite 51 per cent of agents saying that there is just one in four chance that a property will sell for less after auction.
In fact, 18 per cent of agents believed that a passed-in property will always sell for more, with only 3 per cent saying that properties sell for less after auction.
The figure was higher in Sydney where 5 per cent said that all properties sell for less after auction, whereas just 2 per cent of Melbourne agents agreed.
Justin Nickerson, Gavl spokesperson and auctioneer, said that the 24 hours following an auction are crucial to a sale.
“The first 24 hours after a property has been passed in at auction is a high period for property transactions as it allows for conditional buyers to enter the mix,” Mr Nickerson said.
Mr Nickerson added that conditional buyers want to buy on their own terms and that creates a competitive environment that drives the price up.
“As the sale becomes conditional, vendors may look to become more firm on their price as they allow more flexibility with their terms,” the spokesperson said.
To allow for buyers to connect instantly to agents, Gavl has installed a feature allowing buyers to get in touch with the agents of a passed-in property instantly, thereby facilitating a sale.
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