Why selling at auction might be right for you
08 August 2017
Author: REIWA President Hayden Groves via reiwa.com.au
New reiwa.com data has revealed Perth sellers who choose to auction their property are achieving significantly faster selling times than those who sold using the more traditional private treaty method.
The results for the three months to June 2017 showed it took Perth sellers just 28 days to sell under the hammer, compared to the 70 days on average it took for private treaty sales – a notable difference of 42 days.
While still only a small component of the Perth market, Western Australians have become more familiar with this method of sales in recent times, thanks in large part to the popularity of TV shows like The Block bringing auctions into people’s living rooms.
Auctions and the East Coast
If you’re considering selling, there are many reasons why an auction can be the way to go in the current market. You only have to look to the success of this method on the East Coast to understand how powerful of a selling option it can be.
In Sydney for example, auctions represent approximately 33 per cent of all sales, while in Melbourne that number is close to half of all sales. By comparison, auctions are only around two per cent of all sales in Western Australia (based on March 2017 data).
Benefits of selling at auction
For the seller, one of the biggest benefits of going to auction is the sense of urgency and competition this method generates amongst buyers, predominantly due to the shorter marketing and campaign period of auctions.
When listings are plentiful and buyers have plenty of choice available to them, an auction can help your property stand out. Additionally, selling by auction provides reserve price protection and as the seller you have the opportunity to set specific terms of sale.
If you’re considering going to auction, familiarise yourself with how they work and discuss your options with a REIWA agent to ensure it’s the right selling method for you.
Buying at auction
Alternatively, if you’re a buyer interested in a property that is going to auction, do you research prior to the day so you’re well informed and know what to expect.
If you’re uncomfortable with the idea of bidding yourself, you can consider hiring a buyer’s agent who can provide advice before and on auction day.
They also help with a number of other tasks including due diligence on the property, researching the property’s value, helping you decide on your purchase price limit and bidding for you on the day.
Here at Porter Matthews Metro we have a well thought out Auction process and success rate, if you have queries as to how this method might suit you, please give us a call on 9475 9622 or email us at email@example.com