ALTHOUGH WA’s auction culture is not as strong as the east coast, REIWA Auctioneering Network Chairman and Property People Principle Barry Litten said auctions were more common in the western suburbs than elsewhere.
“Auctions account for around 5 per cent of all sales in WA,” he said.
“On the east coast it’s closer to 40 per cent more.”
Mr Litten said this is because WA buyers are familiar and comfortable with private treaty methods that work so well in this State, “thanks largely to the offer and acceptance forms developed by REIWA,” he said.
“There are a range of reasons a vendor would choose the auction option, but most commonly it is to achieve the best possible price in an uncertain market, or the property is unique in some way and therefore difficult to price.
“In this way an auction can test the market.”
Mr Litten said in a booming market, auctions could achieve better prices for the vendor if the competition was strong.
On the other side of the coin, buyers may find a home more cheaply at an auction as it prevents them from making an offer by private treaty that might in fact exceed the owner’s expectation.
For vendors looking for a quick sale, most auction campaigns maximise buyer interests in the four-week period leading up to the auction.
“Of all the selling methods, auctions average the shortest time from listing to sale,” said Mr Litten.
Mr Litten said that by going to the market without a declared price, agents sell buyers the house rather than the price tag.
“Auctions are increasing in Perth and this is partly due to people from the east coast who have moved here, and who are more familiar with the auction method,” he said.
“As families and workers move around Australia in response to the mining and resources jobs, the auction culture is spreading with them.” n