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ISCOVER
Staff Reporter
While there is a growing trend to sell properties at auction, this may not be the best way to achieve top dollar.
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According to RP Data’s Cameron Kusher, auction clearance rates across Australia have trended downwards since mid-April this year.
Despite the fact that clearance rates have eased since April, the volume of properties going to auction has still been substantial.
Mr Kusher said the volume of properties going to auction since mid-April to November was greater than the volume of auctions undertaken this time last year – suggesting auction activity has been greater in 2010.
Given this data, Mr Kusher said it was imperative to ask: “why are so many people taking their properties to auction at a time when there are fewer buyers, more properties available for sale, falling auction clearance rates and slowing levels of property value growth?”.
“With more stock now available, it may e the case that more vendors will look at alternative selling methods. Vendors who prefer to stay with the auction process need to be realistic in their reserve prices and have a back-up plan in the case that the auction is unsuccessful,” Mr Kusher said.
