Market conditions favour auctions, agent advises

Low interest rates and prevailing market demand should tip sellers towards choosing to sell their properties via auction, according to Sydney real estate agent Leanne Pilkington.

Deciding to sell via auction or private treaty can have a considerable impact on the end result of a sale, says Pilkington, the general manager of Laing+Simmons in Sydney.

“In the current climate auctions are definitely a preferred option among vendors, and strong clearance rates of late back this preference,” she says.

Pilkington says high demand areas with good infrastructure and transport links consistently show high clearance rates and strong results at auction.

“Renewed confidence from buyers has seen the market pick up in recent times. People with a secure income are increasingly willing to take advantage of some great opportunities available and there’s continuing interest from first homebuyers resulting from the extended first homebuyers boost.”

Despite the impact of government grants providing solace at the lower end of the market, Pilkington says higher-priced properties are also selling well at auction.

“Our Double Bay office recently held its monthly auction night with six sales above $1.5 million and a total sales volume of over $15 million, so it’s not only the lower end achieving strong results through auction campaigns.”

Still, Pilkington says location must play a part in the decision of how to sell a property, noting there’s still a place for private treaty sales.

“In certain areas there’s a history of private treaty sales and the market continues to show a preference for this method, which can translate to more listings and allow agents to work more closely with vendors.

“For vendors looking to sell without delay, private treaty may be a preferable sales method in markets where stock shortage is not as prevalent.”