Sales hammered home
PERTH sellers putting properties under the hammer are on the fast path to sale, with new data showing it can be up to 42 days quicker to sell by auction.
Reiwa.com said it took an average 70 days for a sale by private treaty compared to 28 days by auction in the metropolitan area in the three months to June.
REIWA president Hayden Groves said auctions represented a small part of the Perth market, where there was plenty of competition between sellers to secure a buyer and standing out from the crowd was paramount.
“Selling at auction has plenty of benefits for the vendor, with a short but high profile marketing campaign bringing serious buyers to the forefront quickly,” he said.
“You also have the security of knowing if your home doesn’t sell at the fall of the hammer, you can continue to negotiate a purchase price with those interested buyers after the auction using the more familiar private treaty method.”
Auction Services Australia director Ryan Thompson said auctions were a bullet-proof method of sale that suited any suburb and price brackets.
“For example, in the past few months we’ve worked with agents to sell properties under the hammer in Beckenham, Bayswater, Crawley, Cottesloe and Wembley Downs,” he said.
“Prices ranged from $350,000 for the Beckenham home to $4.35 million for the Cottesloe property.”
Mr Thompson said the market was showing signs of recovery, with auction attendance increasing and more
bidders competing for the properties.
Reiwa.com data showed auction sales in Perth peaked in December 2016, lifting to 2.31 per cent of total sales activity in the metro area for that month, before returning to just below 2 per cent by March 2017.
“Auctions are still relatively unfamiliar to West Australians but you only have to look to the east coast, particularly Sydney and Melbourne, to see how successful this method of selling can be,” Mr Groves said.
“I encourage sellers to speak with their real estate agents about whether auctions are the right fit for them.”
Mr Thompson said auctions did well in the eastern states because agents, buyers and sellers were educated about the process.
“Auction is a science and running a successful campaign takes skill and knowledge,” he said.
“To ensure the best result, sellers need to choose an educated agent. If the agent does not know what they are doing, it could be disastrous and the property could end up languishing.”
New data shows properties can sell much faster if put to auction.