In a property market which is currently slow, as a result of buyer uncertainty, auctions are proving a way of getting property to move. Properties that go to auction are spending 40% less days on the market and First National Real Estate’s corporate auctioneer said he expects this trend to continue.
“Even though there is uncertainty about the market, the future, carbon tax and so on, there are often no real concrete reasons why properties are not selling” corporate auctioneer Mike McCaffery said.
“We are seeing this in every state across the country, where auctions are moving properties faster than other sales methods”.
“We encourage vendors to go to auction for a number of reasons,” Jee Chin, principal of First National JM Chase said.
“For the vendor, it provides a set date when they will know the result of the sale. For the buyer who might be thinking about a property and are considering their options, an auction actually helps them make a decision.”
“In many ways an auction is a mini version of the market,” Mr McCaffery said.
“On the day, both the vendor and buyer can see what the interest is and the price people are prepared to pay. An auction says this is the day, this is the time, make a decision. It makes people certain one way or the other.”
“If property owners really want to sell their property, we tell them to go to auction, we know they will get a result on the day,” Mr Chin said. “We know the market, we know the buyers, and we can bring those buyers to the auction and get a result”.
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