Buyers no longer fear auction

Here at Realmark we have seen a noticeable lift in auction activity over the past month. Realmark auctioneers held five auctions held over the past two weeks. All have had bidders, with one selling under the hammer, one selling on the day and offers written on the other three which are still pending negotiations. All auctions drew an impressive crowd.

So why is this? Well sadly I don’t think it is because all of the property markets woes are over. I am also certain it doesn’t have anything to do with the Reserve Banks announcement of interest rate cuts.

I think it all comes down to the buyers.

In Western Australia the idea of the auction is relatively new, us sand gropers have always been far more comfortable with the private treaty sale. Many thought the auction was reserved for the multi-million dollar mansions scattered throughout the western suburbs. The auction was something that normal West Australians simply weren’t used to.

However our eastern counterparts have a long history with the auction, believe it or not, they think the private treaty sale is a little strange.

So what has changed in WA? I think the buyer has changed.

Today’s buyer is far more calculated and knowledgeable than the buyers of boom time. Buyers today are well informed when it comes to price and they want to negotiate in an honest, transparent environment. They don’t want sales spin, they want the facts. The auction provides all of the above and hence, they seem to be coming.

Don’t get me wrong, it is not as easy as sticking up an auction sign and buying a hammer, auctions have to be done right. But I believe the current market has spurned a new breed of buyer, and they are not afraid of an auction.

So what is the morale of the story? Simple. If the buyer has changed, we as agents need to change too. Boom time is over, its time to adapt.