With recent average sale prices and auction clearance rates hovering around similar levels to the last 12 months, there is sufficient evidence to suggest that the Sydney property market is continuing on its merry way, yet every agent that you speak to will tell you that it has become so much harder to sell properties over the last 2 months.
If you delve a little deeper and look at the average number of registered bidders at auctions across Sydney and the fact that buyers are unmistakably taking a more measured approach, you can see why agents and vendors might be asking themselves if they should be selling at auction? Even if this does equate to a slowing down in demand, which traditionally doesn’t suit the auction process, the answer is most definitely yes!
3 reasons why selling your property by auction should be a priority:
- Transparency: An auction is in the public arena and it allows buyers to see their competition and shows vendors that a buyer is speaking on their own behalf and delivering their best price. Some buyers have registered at auctions over recent weeks, but indicated that they will not negotiate until after the auction, only to find themselves under more pressure after the auction and without a clear knowledge of where their competition lies.
- Negotiation: Even if the property is passed in and doesn’t sell through the auction process, just by going to auction shows the buyer that the vendor is a motivated seller, it shows the vendor what level the market is at and invariably it encourages both buyer and vendor to negotiate to a point of sale even if the property is passed in at the auction. The average length of time a property stays on the market in Sydney compared with other capital cities throughout the country with lower auction levels is staggering.
- Keeping the buyer in mind: Make it as easy as possible for the buyer to purchase a property. If a buyer is a little uncertain about the whole process, help them. Encourage them to attend a few auctions and become comfortable with the process. At auction, the buyer simply has to turn up and register and then call out their best offer. Simple!
So even if we are seeing an easing, slowing down, cooling off, down turn, plateauing or whatever term you prefer to term this market, the answer is a resounding yes, we should be selling at auction.
Regards,
Paul Crawford
Crawford Auctions