Auction or Private Sale?
If you are planning to place your property on the market in next seven months you will need to decide which method of sale will best suit your property. Generally the two most common methods of sale for residential property are auction or private sale.
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 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.
Auctions tend to be more popular in certain inner and bayside suburbs and more broadly in a stronger market. This has certainly been the case in the last two years. Up until this weekend there have been 9,738* auctions, with a clearance rate of 83 per cent. This compares to the same period in 2009, when conditions were cooler, when there were 5,134 auctions and a clearance rate of 77 per cent.
Homes with architectural and period features will attract different levels of demand, and an experienced agent is able to advise what level of demand a property is likely to receive.
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 agent will be able to advise and show you the sales history for similar homes in your area.
An REIV Member will assist you by using their experience, training and local knowledge to help you make the best decision.