Auctions work in every market

AUSTRALIANS love an auction no matter the market.

With uncertainty at home and abroad, the one thing Australians can always count on is their love of property market speculation and what better way to see the market working firsthand than at auction?

While there is a lot of advice out there on what the best method of sale is in a balanced market like the one we are seeing today, the numbers don’t lie and still show the auction method as the clear winner when it comes to getting the best price. Over the past year, Ray White auctions have continued to net sellers an extra 11.72 per cent more under the hammer than if they’d accepted the highest offer prior.

This year, Ray White Adelaide recorded the largest gap with auctions selling 13.56 per cent more than the highest offer prior, this was closely followed by regional Australia at 12.35 per cent. Ray White auctions across Melbourne and Sydney weren’t far apart at 11.38 per cent and 11.27 per cent respectively. Over in south east Queensland, Ray White auctions sold under the hammer for 11.22 per cent more than the highest offer prior on the Gold Coast while in Brisbane the number was 10.32 per cent.

Ray White National Director of Special Programs Bianca Denham (pictured left) said the auction method worked well for sellers for a few reasons.

“A great auction agent knows they need to build competition and gather as many bidders as possible - this allows magic to happen on auction day,” she said.

“Auction has always been regarded as the truest measure of market value and given the results we're seeing at auction day, almost 12 per cent above highest offers prior to auction, our sellers are being rewarded.

“Keeping the property in the market for three to four weeks, allows all active buyers to see the property and maximises the competition on auction day.

“We very rarely hear vendors who sell by auction lamenting whether they could have got more, it gives great peace of mind that you have extracted the best money the market will pay.”

Ms Denham added for buyers, while auction day can be a very nerve wracking experience, it also has its benefits.

“We often receive feedback from unsuccessful purchasers during private sales (not auction) that they would have paid more if they'd have known what the highest offer was,” she said.

“Auction provides transparency for bidders and confidence to understand that if they do increase their offer under competitive bidding, they are not overpaying as the evidence of value is supported by the underbidder.”

While there’s another long weekend on the horizon, everyone will be back from the Easter break and the Ray White Group has 524 listings scheduled to go to auction nationally. On Saturday alone there are 342 auctions scheduled. Ray White in Melbourne has 155 auctions scheduled while Ray White Sydney has another 115 auctions booked in. Ray White Brisbane and Adelaide both have 54 auctions booked in this week.