PROPERTIES sold by auction are more likely to sell faster than those offered by private treaty, with the latest data from REIWA showing it was 28 days faster on average to sell by auction in the three months to June.
One of the strengths of the auction process is that it offers several opportunities to sell – before the auction, under the hammer or afterwards – and two recent sales highlight the success of this method of sale.
Listed by Abel Property director Adrian Abel and property consultant Fleur Hartley, 29 Winmarley Street, Floreat, sold under the hammer on August 26.
Mr Abel said overall interest in the two-bedroom, one-bathroom home was significant, with 57 groups viewing the home over the four-week campaign and more than 30 additional groups attending the auction.
On the day, there were 16 bids from four bidders, with the property selling for $1.16 million, which Mr Abel said was well above the reserve.
“Our clients were unsure of the benefits of selling by auction, but our experience over the past 12 months was that there is generally a strong demand in Floreat for land-value properties, so I knew that there would be competitive tension for this property,” he said.
“With 57 groups through the home during the campaign, it was important for us to demonstrate to the sellers that auction is the best way to create competitive tension between buyers and ultimately achieve an unconditional sale that worked for the sellers in terms of settlement timing and also accommodated the current lease in place.
“The sellers told me they enjoyed the campaign and they were very, very pleased with the result.
“At the same time, our buyers were completely satisfied with the process because they knew that it was a transparent process and open negotiation and they felt that they paid a fair price.”
Listed by Acton Cottesloe director Bev Heymans and licensed agent Jody Fewster, 20 Osborne Parade, Claremont was due to go to auction on September 9, but was sold prior.
The property had previously been on the market for some time by private treaty.
“Jody and I felt that with the shortage of properties on the market, an auction campaign would ensure we achieve the best |price in the shortest period,” |Mrs Heymans said.
“Also, as the property had been on the market previously, we wanted to send a message that we were there to sell.”
Mrs Heymans said they were inundated with interest and it was very interesting that most buyers had been through the property in the preceding months.
One of the benefits of an auction campaign is that it creates a sense of urgency and encourages buyers to act.
In this case, the successful buyer did not wait for the auction, putting an offer in beforehand.
“For 20 Osborne Parade, the buyer was not in a position to bid at auction,” Mrs Heymans said.
“He wanted a response immediately and made a cash offer.” n