As the property market slows and listings rise, Western Australians are being encouraged to consider auctions by the state's real estate institute. Auctions are not as popular in the state as they are in Victoria, New South Wales and Queensland, but more sellers are adopting the method.

Reiwa.com data shows that the average number of days on market for the private treaty sale method had blown out to 71 days, the longest reading in three years. By comparison, the average number of days on market for a property that is sold by auction is 40 days. REIWA auction data show that over the last three years, the average number of days on market for a traditional sale was 64 and for an auction it was 37, a time saving of 27 days. Over the last five years, the quickest average time for sale by private treaty was 50 days in the December quarter of 2013. The same time period saw the shortest number of days on market for auctions with an average of 33 days.

David Lynch, Chairman of the Real Estate Institute of Western Australia’s Auctioneers’ Network, said auctions can be a great way for sellers to stand out from the crowd and achieve a shorter selling time as the WA property market slows and the number of listings rise. Lynch said auctions help bring out more serious buyers on the day. Lynch said that successful bidders can find more flexible terms in the auction process.

"Traditionally, a successful bidder might be expected to make a 10 per cent deposit on the day, with a further 30 days to hand over the remaining sale price. These days, with the seller’s agreement, the deposit can be between 3 and 6 percent and the buyer can choose between 30, 45 or 60 days to settle the deal. This flexibility is more inclusive of the market and allows a greater number of potential buyers to consider buying at auction," said Lynch.