Auctions selling homes fast
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 with 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, West 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.
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 about 33 per cent of all sales. In Melbourne that number is close to half of all sales. By comparison, auctions are only about 2 per cent of all sales in WA (based on March 2017 data).
For the seller, one of the biggest benefits of going to auction is the sense of urgency and competition this method generates among buyers, mainly because of 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. 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. Alternatively, if you’re a buyer interested in a property that is going to auction, do your research prior to the day so you are well informed and know what to expect.
If you are 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 can also help with a number of 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.