An auction is an excellent strategy for maximising the value when selling your home, especially in the current period of a booming property market.
It can be a little nerve-wracking on the day as you watch the raw reality of market forces deciding the value of your home.
But of course, you have the reassurance of being able to place a reserve on the property – that is, a price under which you do not sell.
You can also place a vendor’s bid, which encourages attendees of the auction to make higher with their bids.
If you’re wondering whether an auction is the right strategy for you, please contact us and we can discuss whether you should take this path or sell by private treaty.
If the thought of going to auction makes you nervous, here are a few facts and figures from December collected by property industry researcher CoreLogic. They show many Australians prefer to sell their most significant financial asset using this method. The results cited below will vary from week to week but indicate confidence in the auction process.
- December was one of the biggest months for auctions ever in Australia with two weeks of 2000 plus properties auctioned in Melbourne alone, and record numbers above 1500 properties in Sydney.
- Nationally, there were two weeks where the total number of auctions across Australia totalled more than 4700.
- The last auction week of December before Christmas resulted in an average clearance rate of 61%. Even though this was one of the lowest clearance rates for a while, it is still an extremely good rate and shows the majority of properties are selling at auction.
- Auctions are a good option at times like now because you will immediately see how high the market is prepared to go for your property.
- Auctions remove any doubt. Even if the price on the day is not quite as high as you’d hoped, you’ll be able to get a result, get your home sold and move on with your lives rather than having everything on hold while you wait to sell.
- The most important clearance rate to pay attention to is the local one rather than national averages. Contact our office to find out the current clearance rate for auctions in our area.
- Many regional areas actually outperformed the capital cities in terms of clearance rates.