Auctions, traditionally the selling method of houses for sale on the East Coast, are gaining in popularity in Perth and Western Australia. According to research by the Real Estate Institute of Western Australia (REIWA), the auction process could be shaving off precious weeks for vendors. This could be particularly important in a market where stock seems to be sticking around for longer than usual.
“Auctions are not as common in WA as they are on the east coast, but this seems to be changing,” said Hayden Groves, deputy president of REIWA. According to Mr Groves only around two per cent of of sales in Perth are conducted by auction, whereas the numbers in Sydney and Melbourne tend to be closer to 30 or 40 per cent.
The more familiar approach of private treaty sales could start to lose out to increasingly popular auctions. One of the reasons for the rise in sales by auction could be the speed of the campaigns. The fixed time frame of an auction campaign, combined with the unconditional nature of bidding on the day, means well-qualified and serious buyers all trying to outbid each other. The result, if all goes according to plan, is a price that is the highest the market is willing to offer at that point in time.
If you are considering putting your house up for sale, you should seriously consider an auction campaign. Talk to the sales agents at Ray White Uxcel to see if this is the smartest option for your specific property. Every home is marketed to different clientele and some properties are simply not going to benefit from an auction.
But for the majority that will do well on the auction block, is the time saving really worthwhile? If the REIWA stats are anything to go by, it most certainly is. Comparing five years of sales data for the state, REIWA concludes that traditional methods of sale achieve an average time on market of 65 days. Property for sale by auction has been clearing in around 39 days. This means an average saving of almost a month for vendors – 26 days to be exact.
This can mean less costs to advertise, preparing for fewer open inspections and certainly dealing with fewer conditional contracts that can draw out the sales process.
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