Perth Auction clearance rates

Perth Auctions were raised in another thread.

Having a look at the stats ending 15th of Jan, 2017, for the week there were 6 auctions scheduled and 2 reported. 1 sold at auction and 1 was withdrawn. A 50% clearance rate is high for Perth.

Auction Results Perth, WA - Latest Weekend Results

When I said Perth buyers hate auctions, I wasn't joking!

It is complicated to understand why but it pretty much comes down to having the most simple real estate sale/transfer system out of any state I have seen (QLD, NSW, Vic and SA).

1. a property is almost always listed for the actual sale price.
2. offers are almost always made using a standard contract.
3. acceptance of offers or a counter offer is generally very fast.
4. conveyancing is so straightforward that solicitors are rarely involved.

The other side is that it would be unusual for a house to be auctioned unconditionally. Usually the contract is flexible and would permit conditions such as finance or building and pest. This negates the advantage of auctions, such as in Melbourne, where auctions are generally unconditional.

The other issue of getting a higher price as raised by @kierank, well, we just list for a higher price. For example, there was a house in my area worth $550,000 max and the owners listed it for $650,000. They looked at offers but ultimately it didn't sell. It has not been rented out.

A high list price does not deter Perth buyers. They see it as an opportunity to negotiate.

 

Interesting. Had this always been the case or are people just more hostile during the current downturn?

 

Dates back a long time. I went to a lot of auctions during the recent boom. I didn't keep detailed records but the clearance rate would have been around 20%.