Auction Order Gifted Sara and Hayden their Block win
By Advantage Property | 29th Oct 18
Frank Valentic's recap of the Live Auction of The Block
Auction Order Gifted Sara and Hayden their Block win
BY FRANK VALENTIC – BUYER’S ADVOCATE FROM ADVANTAGE PROPERTY CONSULTING
The aftermath of bidding on our tenth Melbourne series of “The Block” has been busy and we can’t believe how much interest our bidding on the Finale generated. It was most definitely an exciting end to the series with most of Australia talking about Sara and Hayden’s surprise win gifted to them on a plate by them being early in the auction order. Congratulations to all of The Block contestants on another successful series with total winnings of $1,980,000 which was a great result considering the current patchy Melbourne property market place. The auction order was crucial in the auction results and Sara and Hayden were handed the win on a plate by going early in the auction order. The penthouses which would have normally gone early in the auction order, were definitely disadvantaged by being later in the order as the pool of buyers diminishes with each auction.
“The Block” Auctions in 2018 are now over and we congratulate all the contestants on their financial windfalls. From Hayden and Sara ($645,000), Kerrie and Spence ($415,000), Courtney and Hans ($410,000), Bianca and Carla ($301,000) and Norm and Jess ($209,000), the total combined profit was $1,980,000 above reserve. This is much lower than the Soap Factory result of $2,835,000 over reserve but much more than last year’s Elsternwick series total of $1,220,000. There was a big difference between the winners Hayden and Sara and the rest of the contestant’s results and some of the contestants didn’t seem to be very happy with their winnings.
You would be more disappointed if you were the Cameron Street Richmond contestants who in 2011 combined won much less than all of this year’s contestants apart from Norm and Jess with total winnings of only $225,000. That’s a total difference of $1,755,000 less. We were disappointed to miss out on all five apartments but it is important to stick to your budgets and not over pay.
Myself and other Real Estate Professionals believed that the penthouse apartments would reach around $3,000,000 with auction competition and the older style three properties would sell for between $2,700,000 to $2,800,000. We were bidding for mainly local investors and downsizers which was a very different buyer segment compared to the Elsternwick series where we bid for local young families and one investor.
The auction order was changed on Friday as a number of the penthouse buyers had pulled out. Originally it was planned to see the penthouses go first and then Kerry and Spence, Sara and Hayden and Courtney and Hans. The Block auction order usually starts with the most popular properties and finishes with the least popular properties and contestants who are earliest in the auction order are at a big advantage as there is a larger buyer pool and more buyers competing. So, the flipping of the auction order to have Kerrie and Spence and Sara and Hayden before the penthouses ultimately gifted the win to Sara and Hayden and my buyer feedback suggested that the penthouse contestants were now disadvantaged.
After taking hundreds of buyers through the apartments over the last two and a half months, the consistent feedback was that it would be a two-way horse race between Bianca and Carla and Kerrie and Spence with Norm and Jess in third place. So, Sara and Hayden being shuffled up the order gave them the win that no one expected. No one would have expected Nicole and her local buyer to pay over $3 million and for the property to fetch more than the two penthouse apartments. It was a huge price and the surprise result of the night.
In summary, our tenth Block Auction experience was another exciting action-packed night where we bid on all five Gatwick apartments. Our investor clients and one downsizer client were disappointed to miss out although they understand how important it is that we stick to their set budgets and limits and not get carried away with The Block hype and overpay. The TV show continues to have a successful formula although there were a few bumps along the road this time around. My family and our Buyer’s Advocate team enjoyed being involved in the series again and enjoyed being a part of the experience again and it’s great to see some positive headlines in the press regarding the Melbourne housing market. The great Australian dream of owning a beautiful home continues to appeal to viewers and this year resulted in good results for Channel 9 and the contestants.
We look forward to hopefully being involved in our eleventh Block Series in a row with the overhaul of the Oslo Backpacker’s Hostel in St Kilda which Channel 9 have already been purchased. “The Frankinator” looks forward to hopefully being part of the next series and this veteran Blockhead Buyer’s Advocate hopes he can add to the seven properties we have purchased already for clients. We have now bid on 35 of the 45 Block properties in Melbourne, bidding for a total of 22 investors and 13 home buyers. This year’s target market was mainly investors and downsizers whereas I expect the Oslo terrace houses to have young families dominating again, as we have seen with the 3 Block house auctions to date.