The number of auctions has been steadily increasing in recent years, but although the sales process is widely popular in the eastern states, here in WA it is starting to gain momentum. I’ve been a firm believer in the power of the auction process throughout my career; it’s been a fundamental part of my success and in my opinion, a fabulous method of sale for both sellers and agents alike.
For starters, auctions are a fantastic way to reduce the number of days on market. Ideal for vendors who need a fast result or want to avoid the stress of being on the market for a prolonged period of time – it’s less stress for agents too! According to REIWA, homes auctioned last year sold 42 days faster than those via private treaty.
Better yet, by having a set date for the auction, it creates a sense of urgency among buyers, simultaneously weeding out the time wasters whilst forcing those who are genuinely interested in the property to get their finances in order.
Best of all it’s a completely transparent process. Because you are directly gauging the market, both parties know they always receive a fair market value for the residence, reassuring for both anxious buyers and unrealistic sellers.
Auctions are an innately competitive environment – there may even be a chance of a bidding war! With private treaties, even when buyers feel a strong emotional connection to a property they can still be hesitant to put in their strongest offer, even when they know there are other interested parties. At auctions, they’re able to physically see their competition and it forces them to act, potentially earning premium results from the sellers.
In both strong and tough market conditions, I’ve found auctions to be a particularly effective method of sale. At Minic Property Group we sell almost one-third of our listings via auction – so what do you say Perth, are you ready to embrace auctions?