PROPERTIES sold by auction are more likely to sell faster than those offered by private treaty.
New data from REIWA reveals on average, it is 26 days faster to sell by auction.
REIWA president Hayden Groves said although the percentage of Perth sellers choosing to sell by auction was a small part of the market, this method was gaining popularity because of the visibility of auctions on mainstream television.
“Auctions are becoming more familiar to Western Australians and Perth sellers are increasingly more open to this selling method,” he said.
“While private treaty remains the most common way to sell a property in Perth, auctions did hit a 15-year high in December 2015, with 3.1 per cent of all sales in the metropolitan region happening under the hammer.
“This figure did dip in January due to seasonality, but recovered quickly and was back up to 2.9 per cent in March.”
Auction Services WA director Ryan Thompson agreed auctions were growing in WA with more agents embracing the auction process.
“We have seen a spike of activity in the western suburbs and also the Como/South Perth area,” he said.
“We are also seeing more auctions in non-traditional auction markets such as Butler, South Lake, Hillarys and Yanchep.”
While sellers might be inspired by television auctions, Mr Thompson urged them to remember that auctions do not work miracles.
“They require time and effort,” he said.
“Sellers need to present their property in the best possible light and they also need to be prepared to spend money on marketing the property – this is the ‘net’ that they use to attract buyers, the wider the net the more buyers they will attract.
“I also think they should let the agent tell buyers why they are selling, within reason, as buyers respond to auctions better when they know the seller is genuinely motivated to sell.”
Mr Thompson said during the auction campaign, it was very important for sellers to listen to the feedback from buyers on where they saw value for the property.
“While the auction process is designed to get you the best price the market will pay, sometimes this may be lower than the seller’s expectations and if you knock this back you may not get a better price later,” he said.