Western Australia is experiencing a shift in home selling practices, with auctions emerging as a viable alternative to traditional methods. Currently, only about two percent of properties in the region are sold via auction, a stark contrast to other major Australian cities. As the Perth market faces rapid selling times and limited listings, auctions present significant advantages for both buyers and sellers.
Understanding Auction Benefits
In the context of rising buyer demand and low stock levels, auctions provide a structured and transparent selling environment. For homeowners uncertain about their property’s value or hesitant to accept initial offers, an auction can alleviate these concerns. The auction process ensures that all potential buyers have the opportunity to bid in a single setting, which allows sellers to gauge the market’s response more accurately.
Traditionally, the most common method of selling a home in Western Australia is through private treaty. This approach involves setting an asking price and having an agent from the Real Estate Institute of Western Australia (REIWA) negotiate with interested parties until a sale price is agreed upon. Another method involves inviting offers by a specific deadline, known as the tender process, which is also referred to as expressions of interest or set date sale. Despite these prevalent methods, auctions present unique advantages.
For the week ending October 12, 2025, only 18 properties were auctioned in Perth. In comparison, 96 properties were auctioned in Adelaide, 988 in Sydney, and 1,249 in Melbourne. This disparity highlights the potential for growth in auction sales in Western Australia.
Why Choose Auctions?
One of the primary benefits of auctions is the certainty they provide. Properties sold at auction typically involve unconditional sales, minimizing the risk of buyers withdrawing due to financing issues or other contingencies. This clarity can be particularly appealing in a competitive market, where buyers may be concerned about their ability to secure financing.
Furthermore, auctions are designed to attract serious buyers who are prepared to make competitive bids on the day of the auction. This concentrated buyer interest allows sellers to obtain a fair market price, as all offers are made transparently and openly. Disappointed bidders can also take comfort in knowing the maximum price others were willing to pay.
Auction campaigns provide sellers with greater control over the sales timeline. They can dictate the duration of the pre-auction period, using that time to secure a new home while attracting interest from potential buyers. For homeowners hesitant to list their properties due to uncertainty, this control can significantly reduce stress and provide confidence in the selling process.
REIWA agents are well-equipped to guide sellers considering the auction route, with many possessing extensive knowledge and experience as registered auctioneers. While auctioning a home may not be the first choice for every seller, it is certainly worth exploring the numerous benefits it can offer.
As the Perth market continues to evolve, the adoption of auction as a selling method could reshape the landscape of real estate in Western Australia, providing more options for buyers and sellers alike.
