Have you considered selling your property by auction

Selling by auction is a method most home owners in Western Australia overlook when putting their property up for sale. But if you're weighing up different selling strategies, it's an option worth considering.

Auctions are less common in WA than other states with only around two per cent of properties sold under the hammer.

By contrast, the average number nationally is approximately one out of every five, with around 23 percent of properties auctioned in Sydney, 30 per cent in Melbourne, 11 per cent in Brisbane, 27 per cent in Adelaide, 16 per cent in Darwin and 10 per cent in Canberra.

Why are auctions less successful in WA?

The main reason behind WA's lack of auction culture is the success of the REIWA Offer and Acceptance contract.

Used for sales by private treaty, this reliable document would be familiar to most home buyers. Its simplicity is the main reason private treaty is the dominant sales method.

However, this hasn't always been the case. The strong and fast market in Perth during the 2005 to 2007 boom saw renewed interest in auctions and one which wasn't just confined to the western suburbs or to premium properties as had traditionally been the case.

When prices were rising quickly during that two year period, it was often hard for agents to determine the right price for a property or anticipate what a purchaser might be prepared to pay.

In these instances, going to auction proved an ideal way to get the best price for the seller, one which often exceeded expectations.

What are the benefits of auction?

An auction with its short but high profile marketing campaign can be very effective in bringing out the more serious buyers.

When there are many properties listed for sale and hesitant buyers are spoiled with choice, an auction could be just the thing you need to give your property an edge.

The biggest reasons to sell by auction are:

• Auctions generate a sense of urgency.
• Competition between buyers lead to above average selling prices.
• Seller's who choose to sell by auction have reserve price protection.
• Auctions provide sellers with the opportunity to set specific terms of sale.

What if it doesn't sell at auction?

It is often reported that auctions held in WA are not sold at the fall of the hammer.

While technically accurate, these reports fail to communicate that buyers regularly approach the auctioneer shortly after the auction has concluded. The sale will then usually be negotiated using the more familiar private treaty method.

This is another example of WA's different approach to auctions, but regardless the end result is still the same - it serves to attract keen buyers in a shorter time.

If you're interested in exploring selling your home by auction, contact your local REIWA agent about whether it is right for you.