Auction still achieves the best price

Vendors who sell under the hammer are still achieving better prices than those that sell prior.

This year, Ray White sellers who have held off taking the highest offer prior have, on average, been rewarded with 11.07 per cent more on their sale price. Using the median house price in Australia of $729,000 as an example sale price, 11.07 per cent would be an extra $80,700 added on top.Adelaide was a clear standout and has been all year with sellers making 12.79 per cent more. Sydney sellers have achieved 10.5 per cent and in Melbourne the number is 10.69 per cent. In the sunshine state, Brisbane sellers have made 10.41 per cent more while that number on the Gold Coast is sitting at 10.45 per cent.Competition is a big factor when it comes to snagging that little bit extra on your listing but many sellers are turning to off-market sales which offer very little in the way of competition. Ray White national director of special programs Bianca Denham (pictured above) stressed that this might not be the best option.“It’s so tempting - the ability to sell your home ‘off-market’ without the risk,” she said.“There are many reasons why people choose to sell their homes - upsizing, downsizing, retirement, job promotion, growing family or divorce and the list goes on. “While maximising price may not always be the primary driver of the sale, it certainly is incredibly important and knowing you have achieved the ‘market best’ price provides comfort and satisfaction to the seller.“While marketplaces are being affected by different buying and selling conditions, we are still seeing strong buyer activity.”Ms Denham highlighted three reasons why selling off-market may disadvantage sellers.“Firstly, competition creates the highest prices - this competition is often seen at auction. We all understand the psychology behind ‘compression selling’; people want to buy what other people want to buy,” she said.“Second, new buyers are entering the market every day. While your agent may be very active in your suburb, they haven’t necessarily met every buyer.“And thirdly, you may have heard about buyer’s remorse, but there can also be seller's remorse. This occurs usually when a seller feels forced to take a price that doesn’t feel like market best, or when they have been presented with only one or two offers.”