Auctions achieve quicker sales in Perth

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Jul 20, 2017

Auctions achieve quicker sales in Perth

It takes around 70 days to sell a property by private treaty in Perth, says Hayden Groves, president of the REIWA, but sellers who go to auction are achieving sales in as few as 28 days.

Image by RuRu_SG via Pixabay

Perth properties that go to auction are selling within 28 days, compared to 70 days for properties being sold by private treaty, says Hayden Groves, president of the REIWA.

Sellers struggling to sell should consider going to auction, Groves advised.

New data from the reiwa.com reveals that during the June quarter, it was 42 days faster to sell a property at auction in the metropolitan area than by private treaty.

Groves said while auctions represented a small component of the Perth property market, those sellers who did choose to list their property for auction were experiencing significantly faster selling times.

“On average, it takes around 70 days to sell by private treaty in Perth, but sellers who go to auction are achieving sales in as quickly as 28 days,” Groves said.

“In this market, when there is plenty of competition between sellers to secure a buyer, standing out from the crowd is paramount. Selling at auction has plenty of benefits for the vendor, with a short but high profile marketing campaign bringing serious buyers to the forefront quickly.

“You also have the security of knowing if your home doesn’t sell at the fall of the hammer, you can continue to negotiate a purchase price with those interested buyers after the auction using the more familiar private treaty method.”

reiwa.com data shows auction sales in Perth peaked in December 2016, lifting to 2.31 per cent of total sales activity in the metro area that month, before returning to just below two per cent by March 2017.

“Auctions are still relatively unfamiliar to West Australians, but you only have to look to the East Coast, particularly Sydney and Melbourne, to see how successful this method of selling can be. I encourage WA sellers to speak with their real estate agents about whether auctions are the right fit for them,” Groves said.