In making a choice between an auction and private sale you should consider a number of factors, namely location, style of property, level of interest, timing of the sale and importantly the advice of your REIV real estate agent.
The final choice should be guided by which method is more likely to provide you with the best return for your property.
In Melbourne about 30 per cent of residential sales are conducted by auction. The proportion of private sales is higher in outer suburban and regional Victoria.
Historically auctions tend to be more popular in certain inner and bayside suburbs and more broadly in a stronger market.
Up till the 19th of March there have been 3,677 auctions with a clearance rate of 63 per cent, this compares to this time in 2010 – when conditions were stronger – there were 3,335 auctions with a clearance rate of 85 per cent.
Overall this year the volume of all sales is down by 15 per cent on last year. Whilst this is the second lowest in 5 years it is well ahead of 2009 when the global financial crisis had a significant impact indicating a subdued market.
The volume of sales by auction is down slightly more than those by private sale but the difference is not significant.
Finally it is important to consider the individual property in the context of other properties for sale and recently sold in the area. An REIV member will assist you by using their experience, training and local knowledge to help you make the best decision.
Source: REIV
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