Booming lies
DECEPTIVE AUCTION CLEARANCE RATES
by Neil Jenman
READING TIME: Apx 2.5 MINUTES
The one thing always booming in real estate is the lies the industry tells the public. Aside from the daily false quotes given to sellers and buyers about the prices of properties (high if you are a seller and low if you are a buyer – and then, no matter what, the blame is passed to “the market”), the most common lies are the auction clearance rates.
As we reported in our article last week, auction clearance lies have continued again this week.
We promised we would bring you the truth each week. So, without wanting to repeat the reasons we discussed last week including HOW and WHAT the industry does to deceive you, this week we bring you just three figures about auction clearance rates.
First, we will give you the number of auctions and how many homes were sold by auction.
Second, we will give you the auction clearance rate claimed by the industry.
Third, we will give you the truth.
Let’s start with Melbourne, known as “the auction capital of Australia” (as Chicago was once known as “the crime capital of America”).
In Melbourne this weekend there were 757 auctions of which 451 sold. The industry calls that a clearance rate of 76 per cent. The TRUTH is 59 per cent.
In Sydney this weekend, there were 468 auctions of which 268 sold. The industry calls that a clearance rate of 77 per cent. The TRUTH is 57 per cent.
In Brisbane this weekend, there were 72 auctions of which 23 sold. The industry calls that a clearance rate of 55 per cent. The TRUTH is 32 per cent.
In Adelaide this weekend, there were 45 auctions of which 17 sold. The industry calls that a clearance rate of 57 per cent. The TRUTH is 37 per cent.
In Canberra this weekend, there were 51 auctions of which 31 sold. The industry calls that a clearance rate of 74 per cent. The TRUTH is 61 per cent.
So, there you have it, another weekend of false information provided by the real estate industry and reported as truth by the media and swallowed as fact by millions of deceived consumers.
Someone once said that all agents who break the law should be prosecuted to the full extent of the law. But, if that happened, there would no longer be a real estate industry.
So, they can keep the lies rolling and we will keep trying to bring you the truth – despite the abuse from agents. Your thanks are worth the effort.
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PLEASE NOTE: Our focus is upon helping consumers. Abuse from agents on our web site or Facebook page will be deleted or ignored or well publicised – it depends on our mood.
But one thing will never vary: We will never stop doing what we love most – helping honest consumers get the best deal possible in real estate. And, of course, if any agents are serious about taking care of consumers, we’d love to help you too. Thank you.
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September 16, 2019 @ 1:25 pm
What kind of sorcery do they employ to arrive at those erroneous clearance rates? How do they attempt to justify these figures?
Paul
September 16, 2019 @ 4:44 pm
Thank you Neil. The truth may one day set the Real Estate Industry “Auction system”, up to be taken to court for their deceitful practices.
September 16, 2019 @ 8:45 pm
Hi Neil
What you say about Auctions is totally correct.
They are dishonest and deceitful and there is plenty of dud bidding arranged by the Agent, even though this is illegal and subject to prosecution.
Private Treaty is the only way to sell and the vendors are not out of pocket by paying for all the advertising which also advertises the Agent.
You never see the media publishing information about all the Auctions that did not sell. They only advertise the properties that sold over the reserve price.
These sold properties you could count on one hand.
Regards
John Edwards, Qualified Real Estate Valuer