In the three months up until May, it took Perth sellers only 27 days to sell under the hammer in comparison to the 79 days on average it took for sale by private treaty.
That is nearly two months quicker to sell by auction.
While auctions still only make up a small component of the Perth market, just 2 per cent of all sales in WA, Realmark regularly employ the auction process because they believe the results speak for themselves.
Realmark properties, on the whole, are consistently on the market less than the Perth average and that is because more than half of all Realmark properties aren’t transacted through private treaty they are sold by auction or set date sale.
In the Eastern States auctions account for half of all property sales in Melbourne and represent 33 per cent of sales in Sydney. When used correctly it is a powerful selling tool.
Realmark Group Managing Director, John Percudani, is a strong believer in the auction process.
“We have always been a strong advocate of auctions, we sell this way more than any other real estate group in WA,” he said.
“At the end of the day, like most things in life, if you have a structured process approach, the results will speak for themselves.
“In the case of an auction process it provides discipline and structure for the agent in terms of how they market and sell the property; for the seller in their role to play in decision making; and it draws buyers to focus on the property in a certain timeframe and the actions they need to take to buy the property.
“It is the process of an auction and what it does to focus all three parties that ultimately gets the better result.
“Perth definitely has a mentality of sale by private treaty and there are agents who like the freelance approach to that type of transaction, they don’t like the accountability, or having to market in a planned way and produce weekly sellers reports.
“However we believe ultimately it is the structure that an auction provides that ensures all parties get focused and we aren’t putting a limit on the property in terms of price.
“The reality is most times the property sells on the day of the auction or in the shoulder period in the seven days after off the back of the auction.”
Realmark on average sell properties within 45 days.
“It is the application of good practice that gets the results,” Mr Percudani said.
“When selling a property, price is the biggest obstacle to engagement, so once you put the price to one side and focus on the emotional engagement to a home, that’s where the property selling really begins. it is important for sellers to understand that there is an optimum selling time on market and a long time is often not a good time, having an agent and buyer-focused, especially in the first 30 days on market will more often than not deliver the bestselling outcome and the auction process is perfect in achieving that for sellers.
By comparison to traditional private treaty and offers invited selling methods it also provides a very equitable/fair and transparent process for Buyers to acquire the property of their choice.”
“Rather than focusing just on how many bedrooms and bathrooms there are, you need to focus on the love that needs to apply to a property and the lifestyle decisions people are making.
“What we say to our Agents is be more human, don’t be a salesperson. Tell it the way it is and just engage with people and that will make you the best selling agent.”
If you’re considering going to auction, contact your local Realmark Agent to familiarise yourself with how they work and discuss your options.
If you are a buyer interested in a property going to auction, do your research prior to the day so you’re well informed and know what to expect.
If you aren’t sure about bidding yourself, you can consider hiring a buyer’s agent who can provide advice before and on auction day. A buyer’s agent can also help with a number of tasks including due diligence on the property, researching local property values, helping set purchase price limits and bidding for you on the day.
“We support people using buyer agents,” Mr Percudani said. “They are a very good tool for buyers. There is nothing better than knowledge and being well informed, to research the property and have the right data in front of you.”
For more information visit the Realmark website realmark.com.au.