Why do we not see many auctions in WA compared to the East Coast of Australia?
Responses from agents include “They have a cooling off period over there so an auction bypasses that” ….. “WA is different so we don’t do it here” …. and so on.
Through Agents not offering positive light on the auction process (could this be due to the agent not knowing?) it has been easier to compare property auction with clearance auctions so we end up with explanations like “Auctions only attract bargain hunters and fire sale prices…”
Exposing the Myths
Remember the WA property boom of 2006?
Imagine if properties were auctioned where the price increments were transparent. Instead, through the traditional private treaty method through fierce competition for property, the method evolved into “Dutch auction” scenarios. The result was everybody who bought or sold pushed a buoyant stable market to such an inflated level it burst – hence the term “housing bubble”.
So why do WA agents not endorse or suggest an auction when giving a listing presentation?
Simple: Many do not understand the process of auction
They also see the lead up up as being a sale under a spot light…(and it is, isn’t this what we all want?) BUT… They fear that if the property doesn’t sell on the day, they feel a sense of publicly failing. This is also the fear that gets instilled in the seller.
A large percentage of properties that go to auction receive offers or at the very least, a true benchmark price is revealed. The seller either accepts an offer or makes a truly informed decision in moving forward with their financial strategies.
In Perth, the average days on market are significantly lower for auction properties than average days on market for the traditional private treaty properties.
Food For Thought
Combine an auction campaign with the Aquila HYBRID product and see how cost effective an auction campaign can be. Aquila Realty is part of the real estate revolution…
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