Selling by auction: helping you achieve a premium price in less time

13 Dec 2018

464832575-jpg-735x450.jpgIf your goal is to achieve maximum sale price in the shortest amount of time, it may be worth considering selling your property using the auction method.
 
According to REIWA.com, Perth sellers who sold by auction were able to achieve a significantly faster selling time than those who opted to sell by private treaty.
 
So, why the difference?
 
Historical evidence of property sales in Australia has shown that selling property via auction is the most effective way of achieving a premium price as it creates a sense of urgency due to a looming deadline, which motivates buyers to act.
 
The most successful auction campaigns in Western Australia often achieve sales figures over the property owner’s expectations, due to a high level of interest and increased competition. By removing the price, you remove any ceiling and leave it up to the existing buyers to form their own opinions on what a property is worth.
 
The “no price” marketing method
An auction falls under a “no price” marketing method, alongside end date sales.
 
The no price marketing method is now probably the most widely-used method for sale of residential property in Australia. Buyers determine the value of a home based on the merits, features and benefits of the property in a competitive environment.
 
The no price marketing methods all have some elements in common - most notably, that the property is marketed with a set contract form of sale with a set closing date for sale day.
 
The advantages:
  • The market sets the price... this allows for a premium price to be achieved;
  • The deadline creates urgency with buyers;
  • All offers (bids) are received at the same time - allowing the seller to know the best offers are on the table and that a better offer is unlikely to arise out of others showing interest;
  • Buyers focus on the features of the property when considering the suitability and the price is set after they decide that they really want to own it;
  • Generates competition between buyers;
  • With buyers, it is a process of elimination rather than selection; and
  • Creates a transparent environment for all parties.
It is important to understand that your agent has the knowledge, expertise and sales evidence to advise what your property is worth, but the market conditions at the time of selling will ultimately determine the selling price.
 
At Peard Real Estate, we understand the effort and steps required to achieve a successful outcome for selling your home by auction. Our dedicated team of Sales Associates, Licensed Auctioneers and support staff are committed to achieving the very best result for you. Get in touch with us today!
 

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