Time to take a deep breath. It’s March 2016, and the landscape looks a little different.
Just a few months ago the Auckland housing market was in a frenzy. From Northcote to Newmarket, it was all about auctions. It seemed there wasn’t an asking price to be found.
Now that the kettle is off the boil and things have calmed down, vendors are in a better position to choose their method of sale. The pressure to go to auction has been removed. So the question remains, is an auction the best way to sell your house?
Auctions Today: The Stats
The most recent stats from the REINZ state that 20,070 dwellings in Auckland sold by auction in the 12 months to December 2015, making up 22.2% of all sales. This was a 45% increase in the number of properties sold by auction in the 12 months to December 2014.
The dominance of Auckland auctions in national sales figures is on the decline. In December 2014, Auckland auctions represented 75% of all auction sales, compared to 51% in December 2015. Auctions hot spots are now surfacing in areas like Waikato / Bay of Plenty where auctions have increased by 249%; Wellington with an increase of 72%; and Central Otago Lakes with an increase of 240%.
The decrease in auctions in Auckland correlates with a general cooling off in the market as tax changes and lending restrictions take effect. Despite the lower number of auctions, there’s no reason for vendors to shy away. Auctions still hold the same appeal. Many buyers prefer this method of sale as they can see who their competition is and get greater transparency on the demand for a property.
Will an auction work for my house?
Successfully selling your house by auction depends on a few critical factors, starting with a state of mind. This is where vendors need to find their state of Zen and be prepared to take a chance and accept what the bidders are saying. In many cases, and as long as greed isn’t a factor, the results may be better than expected.
It may be stating the obvious, but it helps to have a desirable property. And we’re talking more than making things spic and span and well presented at open homes. Most importantly, a scarce offering makes a property more desirable. If the property is in a highly sought after area or has another unique offering, a better result is likely. If there are many similar offerings to choose from, then a purchaser knows they have options. In many cases, a purchaser is likely to go with a property that is available by negotiation rather than one for sale by auction.
And most importantly (according to your friendly real estate agent!), a successful auction depends on the quality of your real estate team. Working with a knowledgeable auction-oriented agent who has assembled a good number of quality buyers and an excellent auctioneer is going to put you one step ahead of the game.
What if my house doesn’t sell at auction?
Don’t worry! Go back to that state of Zen you were happily in before, it’s not the end of the world. Allow at least half a day for any wash-up and then set an asking price as soon as possible. Don’t procrastinate here as it may cause confusion and buyers may disappear.
Top Tips for selling your house at auction
Going to auction doesn’t require a big agency. Success is based on the experience of the agent, so go with someone who understands the process well.
- Auctions don’t work when owners’ greed becomes a factor. Even the most eager buyers are not going to go beyond their means.
- The auction process isn’t always suitable for every property in every market. Get your agent to demonstrate that properties like yours have sold successfully by auction. Ask for hard evidence, property addresses and dates sold.
- Do your sums. Know the costs involved and work out if it’s still profitable if the house sells at, or below, the reserve.Many people love an auction because it demonstrates true market forces at work. Seeing your house to go under the hammer for the best price the market can pay is a hugely satisfying outcome.At the end of the day, it will be up to you to meditate on whether you want to go to auction or not. We highly recommend listening to the expert opinions of others, but ultimately, you will have to back yourself on this one. Just find your happy place and don’t make auctions a bigger deal than what they need to be.If you are thinking about selling your house by auction, get in touch today. Our team know a thing or two about auctions and are happy to talk through the pros and cons.
About The Property Market
The Property Market is a full service real estate agency built to deliver a better experience for buyers and sellers. Think real estate, only reinvented.
– Our real estate agents operate in the central and west Auckland suburbs.
– Our real estate agent commission rates are innovative and competitive.
– Our focus on customer service is second-to-none.
– We offer a range of clever online marketing solutions, including a mobile-friendly, personalised website for your property.