In recent years, auctions have taken off in the Canberra region.
A fundamental norm in the Sydney market, auctions have been adopted in the nation’s capital with agents and vendors using the method to establish the market value of a property.
There has been significant year-on-year growth in the volume of auctions. Domain group data shows in the 11 months to November 2017 there were 3238 auctions in the Canberra region, up from 2733 in 2016 – an increase of 18.5 per cent.
With March historically faring as the month with the second-highest volume of auctions in the year, the next two weeks are gearing up to be big for the region.
While auctions have been cemented as the norm in Canberra, many continue to feel wary of the process, particularly around the perceived cost.
However, one of Australia’s leading auctioneers and Allhomes ambassador, Damien Cooley, believes vendors serious about selling – either via auction or private treaty – will spend the same amount on their marketing campaign.
“There is a misconception that auctions is an expensive way to sell your house. I believe that your marketing campaign, regardless of your method of sale, should be exactly the same,” Cooley says.
“The benefit with auction is that you are [allocating] that marketing budget into a three to four-week time frame.
“The urgency that is placed on a buyer to make a decision by that time is very important and the urgency that is placed on the seller to make a decision on price is also very important.”
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Cooley says auctions are the best way to establish a true market value of a property.
“The reality is that so many people who are selling their home, the price that they have, that they believe the property is worth in their mind, is very often the dream price of what they would love to achieve,” he says.
“The beauty of auction is that you are removing price as a barrier, because you are not going out to the market saying this is the owner’s dream price. You are going out to the market saying you tell us what you are prepared to pay and then we will take that to the owner and then the owner’s decision here is to say yes or no.”
In conjunction with Allhomes, Cooley will be hosting the Mastering the Auction Sale Method masterclass tomorrow at Meyer Vandenberg Lawyers from 7.45am. Tickets have sold out but you can follow the event on our Twitter account.