The Perth property market has experienced a period of rapid sales, leading many sellers to favor private treaty methods. However, recent data suggests a potential resurgence in the popularity of auctions, offering sellers a compelling alternative in the current market.

The Shifting Sands: Auctions vs. Private Treaty

Historically, auctions have often proven to be a quicker selling method. Pre-COVID, the median selling time for houses was 51 days via private treaty, compared to just 29 days at auction. However, the recent market boom has flipped this trend. In early 2024, houses sold in a mere 10 days by private treaty, while auctions took slightly longer at 18 days.

Interestingly, recent months have indicated a potential shift. By December 2024, the median selling time via private treaty had increased to 16 days, while auction sales were at 17 days. If this trend continues, we may see auctions becoming a more attractive option than private treaty sales by late 2025.

Why Consider an Auction? More Than Just Speed

While speed is a factor, auctions offer sellers a range of advantages beyond a quick sale. In a market where prices are stabilizing, auctions provide a powerful mechanism to achieve the best possible price. The competitive bidding environment created by motivated buyers can drive the price up to its true market value, potentially exceeding expectations.

Tailored Selling Experience

Auctions provide sellers with greater control over the sales process. They can set specific terms, including settlement dates, deposit amounts, and conditions. This level of control can be particularly beneficial in avoiding common delays associated with finance or building inspections, as buyers are required to have these in place before auction day.

Multiple Selling Opportunities

Auctions offer sellers three distinct opportunities to secure a sale:

• Pre-Auction Offers: Strong offers submitted before the auction can be considered, providing an opportunity for a quick and favorable sale.
• Auction Day Sale: The competitive bidding process often results in a successful sale under the hammer, providing certainty and a clear transaction.
• Post-Auction Negotiation: If the property is passed in, sellers can negotiate directly with interested bidders or open the property to private offers, establishing a clear starting point for negotiations.

Transparency and Certainty

Auctions offer unparalleled transparency. Buyers can see exactly what others are bidding, fostering confidence in the process. For sellers, this ensures they are achieving a fair market price. Furthermore, sales under the hammer are typically unconditional, eliminating the risk of buyers withdrawing due to finance or other conditions, offering sellers greater certainty.

Our Perspective

While private treaty sales have dominated the recent market, the changing dynamics suggest auctions are poised to make a comeback. At Holdsworth Real Estate, we believe it’s crucial for sellers to consider all available options. Our team of experienced agents can help you determine whether an auction is the right strategy for your property and guide you through the entire process. Contact us today for a personalized consultation.