By Anthony Webb
As Melbourne’s property market heats up, the latest figures show that a record number of homes are being sold prior to auction, rising to 23.6 per cent.
There are a number of factors that are driving this trend – firstly, with sky-rocketing prices at auctions across Melbourne, buyers are eager to get ahead of the competition, in fear of missing out on their dream home.
Secondly, despite rising confidence levels amongst vendors, there is still hesitation about where the market is heading, leading to sellers accepting offers prior to auction to gain a sense of security.
But whilst selling prior to auction is proving more popular, I would actually advise the opposite. Melbourne’s market is so hot right now that we’re seeing fierce bidding battles at nearly every auction, with prices soaring above the reserve. We’ve had a 100% clearance rate for the past three weeks now, and that level of performance is showing no signs of slowing.
Aside from this competitive bidding environment, another benefit of selling via auction is that it gives vendors greater control of the sale – a reserve price is set as a protective safety net, and once sold, the sale is unconditional. There is no cooling-off period, meaning that the sale is guaranteed, and the buyer is legally obliged to purchase the property.
Auctions also come with a short, high-intensity marketing campaign, meaning less stress for the vendor and a quicker sale (which is important whilst the market is hot!).
To have a chat to us about selling your property via auction, give us a call today!