With some property markets still slowing and showing lower than previous clearance rates, it is natural that vendors are questioning the advantage of selling through auction. While auctions are not ideal for all properties, a slow market is no reason to shun the system. Many properties are still sold by public auction today.
Consider also that properties passed in at auction should not be viewed as failures; auction clearance rates are not necessarily accurate reflections of sales success. This is because the auction process does not stop when the hammer comes down – even when a property is passed-in, it will usually have generated enough interest throughout its campaign to attract offers afterwards. Again, the auction process highlights current market value and buyers and sellers can come to an agreement in a faster period of time than through a private sale.
The deadline of a four-week auction campaign tends to force buyers into make a decision in a tighter timeframe than a private sale situation: an auction creates an unconditional sale where there is no cooling-off period applicable and no terms and/or special conditions can be negotiated. You are also likely to sell your property faster through the auction process, as property sold this way typically has fewer ‘days on market’ than other private treaty methods of sale.
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