Some Americans have been stunned by the way many homes are selling in Australia, but Australians aren’t sure what all the fuss is about.
A clip from an auction in Melbourne went viral after a bemused New Yorker told his 50,000 followers on .
“Think of all the Australians you have met,” wrote Stephen Smith.
‘Maybe they are your friends or co-workers. Maybe they’re serving you brunch…
—But do you know what they don’t work for you? The truth about how they sell houses.
The clip, which has since racked up more than 2.5 million views, sparked an avalanche of equally bewildered responses.
‘Is this real?’ one asked.
‘So a man literally stands on the street outside the house being sold and accepts offers from anyone?’ Do the owners sit inside and listen? “I have a lot of questions,” wrote another.
Someone else joked that “it boggles the American mind to have an auction run by anyone other than an unintelligible Texan and sell anything other than livestock.”
But the vast majority of responses came from Australians confused by the fact that people didn’t know how houses were sold in the country.
“I’m Australian and I don’t understand what’s supposed to be secret about this,” said one.
A clip from an auction in Melbourne went viral after a bemused New Yorker told his 50,000 followers on (archive image).
The clip, which has since racked up more than 2.5 million views, sparked an avalanche of equally bewildered responses (stock image)
‘Wait… Don’t all other countries sell houses through auctions? Surely this isn’t unique to Australia?’ said another.
Others said it often served as a big social occasion for neighbors.
“Not only are most Australian houses sold this way, it’s also often a big impromptu street event,” they said.
‘The last house on my street to be sold at auction in Sydney was attended by about 100 people and all my neighbors had a drink together. It’s great!’
Another said “going to auctions is like a Saturday sport here in Sydney.”
Meanwhile, others defended the auction process, arguing that it allowed each bid to be sincere and reduced the stress of making an offer only to be rejected.
‘It may be theatrical, but it is transparent. “None of these American undercover agents lie about who offers what,” they wrote.
“No trickery, contract signed, deposit paid, cooling off period for financial approval, both parties come to an agreement – auctioneers are clowns but the process is a much better way to maintain certainty for both seller and buyer , and very few sales fail result,” said another.
Others, however, were more critical of the auction system.
“This is the only case where Americans are baffled and dismayed by the behavior of Australians and where they are absolutely right,” one of them said.
More than 13 per cent of homes and units sold in Australia this year have been auctioned, according to PropTrack data.
Another added: “I’ve bought two houses in my life and probably paid 300 per cent more than market value to avoid attending these kinky little auctions.”
Isa Hafalir, an economics professor at the University of Technology Sydney, has lived in both Australia and the United States and has first-hand experience of buying property in each.
He said auctions were “very rarely” used in the United States but were popular in Australia because of the competitive property market.
“In Australia, estate agents and auctioneers want neighbors and a large group of people to come, even if they are not serious buyers, because it has this kind of psychological effect that it is a hot property and a lot of people are interested. in it. Professor Hafalir said news.com.au.
He said it was also a more transparent process for buyers because they could see who was offering what, unlike in the United States, where parties can offer above or below the asking price.
More than 13 per cent of homes and units sold in Australia this year have been auctioned, according to PropTrack data.
It is most popular in the ACT at 27 per cent, 22 per cent in Victoria and 20 per cent in New South Wales.
Figures for other states and territories were much lower, a fact reflected in some of the responses to the viral video.
‘Very few houses in Western Australia are sold at auction. It’s a very similar issue to Sydney and Melbourne,’ one person said.
