Auc­tions sell­ing homes fast

Pilbara News - - Property - Hay­den Groves Hay­den Groves is the pres­i­dent of the Real Es­tate In­sti­tute of WA.

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.

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