Auctions motivate buyers, even in tough markets
There's no escaping the fact that currently it is a tough market to sell. We are finding that auction is a great method as it motivates buyers to make a decision to purchase in a set time frame and is achieving good price results for our vendors.
Our auction campaign clearance rate over a three-phase campaign is 70% at present.
At a recent auction in Parkside in South Australia, we had strong interest and three registered bidders. The three bedroom townhouse sold under the hammer for $340,000, which was a price we don't think we would have achieved if the property wasn't under auction conditions.
- The merits of going to auction in the current market are that auction:
- Gives vendors an opportunity of getting a cash unconditional contract.
- Gives a time frame to purchasers to organise there purchasing position.
- Allows the market to give indication on market price from feedback.
- Even if property does not go on auction day, you will have three weeks of "gold" information to use when setting a price to take it to the market with so you don’t price it out of the market place.
Properties with large buyer groups, development opportunities, family homes, and anything the agent believes is going to have good competition will be the best to market in the final stages of winter and into the onset of spring.
Additionally a property that is hard to identify a true market value for would be good to list and sell now and quite simply leaving it up to the market to decide its price.
Michael Fenn is principal of LJ Hooker Greenwith, SA