The competitive nature of an auction sale can be exciting and stressful on both sides of the property transaction.
For sellers, auctions offer the promise of a sale price well above reserve along with the risk that their property may be passed in.
Here’s why auctions have become the norm across the eastern suburbs and key reasons an auction may benefit you.
The best markets for auction sales
When choosing between an auction or private treaty sale it’s important to balance your own preferences with wider market factors. Generally, auction sales are the right choice for markets that have:
- A high level of buyer activity, measured by inspection numbers along with auction attendance.
- A low level of stock: The more tightly held the market, the more motivated buyers will be to keep bidding.
- A desirable location: With the right address, sellers can usually rely on strong competition, even if they need to sell quickly or out of season.
Does a ‘for sale’ sign turn buyers off?
Because all four markets across Sydney’s eastern suburbs meet the above criteria, there’s a strong tendency for buyers to misinterpret private treaty sales. For many, a ‘for sale’ sign is seen as code for a failed auction, which can lead to offers well below the asking price. Of course, this isn’t the case for every private sale, but it is a factor worth keeping in mind when deciding whether to go to auction.
Auction benefits for eastern suburbs sellers
Even though some buyers now view private treaty sales with suspicion, the fact is that the auction process is really only different from a private sale in that it happens more quickly, in a more transparent way. At auction, the real estate agent isn’t managing negotiations behind the scenes – sellers can hear every offer from bidders who are literally out in the open.
Another benefit for sellers is the extra control the auction process provides. Outside the bidding process, sellers also have the opportunity to negotiate pre-auction sales and to negotiate directly with the buyer if the property is passed in.
More open home times maximise exposure
Unique to Sydney’s east, The Ben Collier Team offer Sunday inspections for each property, which really pays off over an auction campaign.
A standard auction campaign runs for four weeks, with three weekends of inspections and the auction itself on the Saturday of the final weekend. Sunday inspections add additional opportunities for buyers to view the property and become invested in a particular home, outside the usual midweek and Saturday inspection times and to avoid clashing with other property inspections.
Highest Sydney clearance rates are found in the east
As the 2017 auction season begins, commentators are focusing on lower clearance rates at a national level. But a closer look at CoreLogic figures reveals that auction clearance rates are still extremely strong in Sydney’s eastern suburbs. In fact, this season’s first set of clearance rate figures puts the eastern suburbs ahead of any other region in Sydney, sitting at 81.3%.
There are strong arguments in favour of auctions for eastern suburbs sellers. But no matter which sales process is right for your property, getting expert advice is crucial.
To talk with our experienced team about the best way to sell your property, get in touch today.
Sydney’s Eastern Suburbs Market Snapshot
A detailed annual assessment of the property market focusing on the Eastern Suburbs of Sydney, Australia.