Should you sell via auction or private treaty in Canberra's current market?

Anyone thinking of selling or buying a home will have been closely monitoring the dynamics of the property market.

When to sell? Or buy? And what’s the best channel in a slowing economy with lengthy lending approvals?

Sophie Luton of Luton Properties Manuka is firmly committed to sale by auction.

“We’re experiencing an under-supply of properties in the key Inner South suburbs. It’s a good time to come onto the market,” she says.

“And the auction process can deliver a premium price when there are fewer properties on offer.”

Luton says private treaty is preferred by some vendors and it can be effective in a suburb where similar properties are on the market.

“You can then price your vendor’s property competitively,” she says.

“But you don’t get the competition an auction can bring. What price might a buyer have gone to with other bidders present?

Stephen Bunday of LJ Hooker Dickson says buyer channel preferences have changed from 10 years ago.

“Back then buyers would ask why a seller was going to auction?” he says.

“Now they ask the same question if it’s by private treaty. There’s a stronger preference for the transparency of an auction. It’s all out in the open.”

Bunday says many buyers resist private treaty when the process goes to “best and final” bid.

“Feedback suggests some losing bidders would have gone higher if they had some idea where the price was,” he says.

“On those occasions, an auction might have delivered an even better result.”

• Conditions. The best channel for selling can often be determined by market conditions. Is it in under or over-supply? What other factors might affect the dynamics like the economy and lending conditions?
• Private treaty. An owner sets a price, the fair market value they would like to get for their property. Their agent then does his or her best to achieve that result.
• Auction. An auction sale is an open market competition. The owner sets a reserve price and prospective buyers make their bids on a specified day/time with the property going to the highest bidder.

Allhomes’ top pick of homes for sale via private treaty:

Forrest

19 Talbot Street

$3.895 million

4 bedrooms, 5 bathrooms, 2 parking

There’s a good reason that Forrest is acknowledged as one of Canberra’s most desirable addresses.

It’s home to many fabulous character homes on great big blocks of land – and it’s close to everything while retaining a sense of leafy privacy.

This five-bedroom residence on Talbot Street is certainly up there with the suburb’s finest gems, and so it should be with a price tag that’s nudging $4 million.

Expectations begin with a grand entry statement through a semi-circular driveway on Talbot Street (with additional access via National Circuit). A porte cochere provides a suitably dignified sense of arrival.

The residence welcomes in a typical Forrest way: light-filled rooms with plenty of character features including high ceilings, french windows and open fireplaces.

Rooms would suit diplomatic entertaining and include formal sitting, lounge, dining, library/study, family, rumpus and al fresco area.

The generous master bedroom has a walk-through wardrobe and large en suite with in-floor heating. The second also has an en suite. A third bedroom enjoys access to the main bathroom while the last also has its own en suite and access to a study/studio and storage room.

The established and highly private gardens are highlighted by multiple entertaining terraces and courtyards and a sparkling swimming pool.  There’s a double garage.

This grand home sits on a 2200-square-metre block close to Forrest Primary School, Canberra Girls Grammar, the parliamentary triangle and the Manuka retail precinct.

Agent: Luton Properties Manuka, Sophie Luton 0410 750 413