Western Australia is currently in a sellers’ market, with low stock levels and strong buyer demand fuelling price growth.
The current market conditions are particularly well suited to the auction sales method. REIWA data showed sales under the hammer increased 50 per cent during the December 2021 quarter and were up 76 per cent compared to the December 2020 quarter.
There are many reasons to consider choosing to sell your property at auction over the traditional private treaty method, where a sales price is specified. One of the biggest benefits is that you have the potential to achieve a premium sale price for your property.
Auctions generate a competitive bidding environment, fuelling emotion amongst buyers and creating a sense of urgency, which can reap strong results for the sellers. They draw in genuine buyers who show up on the auction day prepared to buy, either with cash or pre-approved finance.
Buyers are also able to provide direct feedback to the seller and agent prior to auction day, giving a good indication going in of who the genuine buyers are and how much they are willing to pay.
Another benefit is that auctions have a set timeframe for the seller, agent and buyers to work with. The auction date is set by the seller – usually three to four weeks from when the listing goes live, but it can be tailored to the seller’s preference. This precise timing allows sellers to maximise their marketing budget and plan home opens accordingly.
It also provides three distinct opportunities to sell the property. The first being prior to auction, the second being at auction and the third being post-auction. This gives the seller a good chance of achieving an early sale, while also ensuring there is plenty of opportunity for negotiations post-auction if a sale isn’t achieved under the hammer.
Additionally selling by auction provides reserve price protection and the seller can set specific terms of sale. When the gavel falls and the property is sold, that sale is unconditional and the buyer is legally obliged to proceed with purchase.
Auctions are also a transparent sales method. The sale happens in real time, giving all buyers in attendance the opportunity to present their highest offer during the bidding process and see the other bids.
If you’re considering selling at auction, familiarise yourself with how they work and discuss your options with a REIWA agent to see if it’s a suitable sales method for your property.