Hammer out successful sale
WHEN it comes time to sell your property, the age-old argument of auction versus private sale naturally comes to the fore.
There is no one best practice but the general consensus among property professionals is that both housing type and market confidence play pivotal roles.
CoreLogic RP Data auctions spokesman Kevin Brogan crunched combined capital city data over the 12 months to November last year and found higher valued and more unusual properties were taken to auction.
“If you have a house in a street and there are 10 others like it, you have a pretty good idea of what it’s worth,” Mr Brogan said.
“But if it’s unique or unusual you might not be able to pick what it’s worth so you take it to auction on the proviso there’s enough interest.
“Looking at the combined capital city data over the past 12 months to November, you see the general median price of houses that sold at auction is about $950,000,” Mr Brogan said.
“Sold by private treaty that median is $530,000, so that tells you a story about types of properties taken to auction.”
Almost half (45 per cent) of houses sold at auction were sold for at least $1 million, whereas only 12.5 per cent of houses sold via private sale fetched more than $1 million.
“If you’ve got a property you think will be a successful property to take to auction, agents will tell you it offers the maximum chance of success,” Mr Brogan said.
“If you’ve got interested parties it brings matters to a head so it’s a very effective tool.”
Market analyst and buyers’ agent Simon Pressley of Propertyology agrees, adding strength of market is key.
“I would go to auction in a rising market when you could be confident there’s going to be competition because of the state of the market,” Mr Pressley said. “And other times, it might be best if there’s something niche about it.
“That’s often why more expensive homes go to auction because it’s harder to compare $3 million homes to other $3 million homes.”
News Corp columnist and Ray White auctioneer Haesley Cush believes any property can and, with the right marketing, should be auctioned as long as the agent knows what they’re doing.
“Auction allows buyers and potential buyers to judge a property on the features and benefits without price involved,” he said.
“The alternative is that buyers disregard properties all the time based on a listed price attached to photos only to find it’s eventually sold for a price they would’ve paid.
“The stats we carry show auctions get more buyers through the door because they don’t have a price and are usually better promoted.”
Mr Cush said auctions opened up possibilities rather than capping a property by price.
“If your property has no price on it, the value is the value you attract,” he said.
“Alternatively, if you put a price on it and it’s the wrong price then you’re wasting advertising money and time.”