When meeting a client for the first time we are often asked ‘how should I sell?’ and although every client’s situation and property is unique, an auction does have key advantages over a private treaty campaign.
Firstly, unlike a private treaty sale an auction has a ‘sale date’ which creates an instant sense of urgency. Sometimes the pressure of the looming auction date encourages a buyer to purchase the property prior to auction, often for more than anticipated. The recent sale of an apartment at 14/98a St Georges Crescent, Drummoyne by Richard Matthews Real Estate for $910,000 was well above the vendor’s expectations.
Competition amongst Sydney buyers is fierce right now with auction results often exceeding reserve prices. Sydney’s latest auction clearance rate on July 13 was a stellar 81%. Over the first quarter of this year the proportion of sales by auction across Sydney was 16.1%, a considerable improvement from 13.4% in 2012.
Private treaty sales are perceived as safe, with a set price that is often printed in the advertising. Yet if it had gone to auction there is always a chance your property could have sold for higher than expected, but you will never know. In contrast, when a property goes to auction the sky is the limit. The reserve price is a safety net ensuring your property won’t be sold until a minimum is reached. If you sold at auction now, with the current market conditions and a crowd filled with keen bidders, you could be very surprised by the sale price.
Want to learn more about auctions, your property and sales performance in your local area? Contact real estate experts Richard and Matthew today at Richard Matthews Real Estate – apply online or call 9642 4288.
Figures from RP Data.