Posted on 06/10/2014 by Andrew Johns
Selling by auction is a method most buyers in Western Australia overlook when putting their property up for sale. But if you’re weighing up different selling strategies, it's an option worth considering.
Property auctions are less common in WA than other states with only around two per cent of properties sold under the hammer.
By contrast, the average number nationally is approximately one out of every five, with around 23% of properties auctioned in Sydney, 30% in Melbourne, 11% in Brisbane, 27% in Adelaide, 16% in Darwin and 10% in Canberra (source: REIWA.com)
A property auction with its short but high profile marketing campaign can be very effective in bringing out the more serious buyers.
When there are many properties listed for sale and hesitant buyers are spoiled with choice, an auction could be just the thing you need to give your property an edge.
The biggest reasons to sell by auction are:
TIP: Setting the reserve should be an analytical decision based on buyer feedback obtained by your agent during the campaign as well as comparable sales in your area. By now you should have a good idea as to how many buyers are genuinely interested and how they feel about your home in relation to the price that has been quoted to them.
The marketing undertaken for an auction property needs to be more focused and will most likely cost a little more than a normal marketing program as the auctioneer will charge an auction fee of around $770 to the agency which is passed onto the seller.
Buyers need to conduct building inspections and ensure their finance is approved prior to bidding at the auction. If the property fails to sell at auction, you can continue marketing the property with an asking price. It is likely that one of the buyers, often the highest bidder will come forward and negotiate a sale with the agent on your behalf.
Should the property sell on auction day under the hammer, the property is sold and there is no cooling off period for the buyer or the seller.
To find out more about property auction and whether it's right for you, contact One Agency South on 08 6311 3333 or email us at firstname.lastname@example.org. You are also welcomed to attend one of our property auctions (open to the public) - check out our RESIDENTIAL PROPERTIES FOR SALE page to find out when's our next auction!