Why you should consider selling your property at auction

Western Australia is currently in a seller's market, with low stock levels and strong buyer demand fuelling price growth.

The current market conditions are particularly well suited to the auction sales method. There are many reasons to consider choosing to sell your property at auction over the traditional private treaty method, where a sales price is specified.

Achieve a premium sale at auction

One of the biggest benefits is you have the potential to achieve a premium sale price for your property.

Auctions generate a competitive bidding environment, fuelling emotion amongst buyers and creating a sense of urgency that can reap strong results for the sellers. They draw in genuine buyers who show up on the auction day prepared to buy - either with cash or pre-approved finance.

Buyers are also able to provide direct feedback to the seller and agent prior to auction day, giving a good indication going in of who the genuine buyers are and how much they are willing to pay.

Auctions have set time frames

Another benefit is that auctions have a set time frame for the seller, agent and buyers to work with. The auction date is set by the seller (usually three to four weeks from when the listing goes live but can be tailored to the seller's preference).

This precise timing allows sellers to maximise their marketing budget and plan home opens accordingly.

Three opportunities to sell

It also provides three distinct opportunities to sell the property. The first being 'prior' to auction, the second 'at' auction and the third 'post' auction.

This gives the seller a good chance of achieving an early sale, while also ensuring there is plenty of opportunity for negotiations post-auction if a sale isn't achieved under the hammer.

Seller is protected

Selling by auction provides reserve price protection and the seller can set specific terms of sale. When the gavel falls and the property is sold, that sale is unconditional and the buyer is legally obliged to proceed with purchase.

Completely transparent sales method

Auctions are also a transparent sales method. The sale happens in real time giving all buyers in attendance the opportunity to present their highest offer during the bidding process and see the other bids.

More information

If you're considering selling at auction, familiarise yourself with how they work and discuss your options with a REIWA agent to see if it's a suitable sales method for your property.