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New data shows that real estate agents and home owners are at odds over which method secures the highest sale price for a property.
A survey conducted by Gavl of Sydney and Melbourne agents found that 90 per cent of agents believed that selling under the hammer secures the highest sale price for a property.
The same survey asked 1,001 home owners and found that only 41 per cent of home owners agree with agents.
Among agent respondents, 100 per cent of Sydney agents believed that auctions get the best price, compared with 87 per cent of Melbourne agents.
Among home owners, 59 per cent who had owned or been in the market believed that properties sell better through private treaty.
However, analysis conducted by Gavl of 3,000 auctions shows that vendors should trust agents, as on average, properties netted $50,000 more when declared on the market.
Gavl spokesperson Justin Nickerson, Auctioneer of the Year at the 2017 Australasian Auctioneering Championships, said that these findings were on par with agents’ opinions.
“Home owners hold a more reserved position when it comes to selling property as there are multiple factors to take into consideration including fees, the selling timeline and possible worst-case scenarios,” Mr Nickerson said.
The director of Apollo Auctions also said that the unpredictability of auctions could scare off vendors, which is why they believe a private treaty is a better method.
“By nature, auctions are a more uncertain and unpredictable selling method but often come with a high-risk, high-reward stake. It’s therefore understandable that vendors feel more comfortable with private treaty as a more reliable option.”
With experience comes knowledge and vendors should trust their agents, according to Mr Nickerson.
“Agents, on the other hand, have deeper knowledge and experience of both selling methods and understand the risks and rewards associated with each. Vendors who follow the selling advice and expertise of agents will often reap high benefits,” Mr Nickerson concluded.
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