We’ve had a big change in the property market over the last two years and we have seen real estate prices go from strength to strength up until 2017. 

However, since then everything has hit the brakes. So is now a good time to put your home on the market and get a great price?

If so, what selling method should you use, auction or private sale? In this article we give you the tools on how to gauge the best selling strategy and when to sell your property.


 

Auction or Private Sale?

 

‘What selling method are real estate agents using in your local area? Auctions or private sale?’ 

Should I Sell My House In 2019?

Real estate agents are the front line of the property market. As soon as there’s a change in market conditions, real estate agents are quick to adapt to the winning selling strategy.

For instance, when buyers are increasing in numbers, agents switch from private sales to auctions.  The selling strategy of ‘quote it low and watch it go’ is applied and the buyer with the most money wins.

When the market softens, real estate agents turn to a private sale strategy where they use wide selling ranges to tempt buyers that have too much choice.

SUMMARY: each suburb is different, so it’s important to observe what the most common selling method is from the best real estate agents in your area.


Is it a Buyer’s market or Seller’s market?

 

Understanding this is yet another way to support why agents are choosing to do auctions or private sale in your local area.

The media could be telling you it’s a buyer’s market, but each suburb has different supply of properties for sale and demand from real estate buyers.

Rewind back to the start or 2018, Melbourne property prices were still increasing, and auctions were booming in affordable entry level suburbs. While expensive inner-city auctions were failing, real estate agents were switching to private sales.

Choosing the right selling method is critical to achieving a great result.

 


Auction Clearance Rates, the markets temperature gauge.

 

Let’s look at the Melbourne auction clearance rates: looking at these figures is a quick indicator of the type of real estate market we are in, buyer’s or seller’s market.

Over the last 10 years, when prices were increasing, the auction clearance rates hovered around  70% + range. Real estate agents were choosing auctions as a preferred selling method.

Take for instance February 2019, the clearance rates for houses was 71% with 737 auctions that weekend, private sales volume: $228M. The time it took to sell a property was typically the length of a 4 week auction campaign.

June, 2019, auction clearance rates are now hovering in the 50% range, so it’s no surprise auctions have fallen out of favour as the preferred selling method.


So is it a good time to sell?

 

Factors affecting this depend on the type of property you own, how it’s kept and what your plans are after selling.

The Melbourne property market is in great form, even though auction clearance rates are not at an all-time high, one in two homes are still selling at auction. Even after a failed auction, switching to private sale and tweaking a selling camping on price soon achieves the desired result. 

So you exchange your home for another- it’s all relative if you’re selling your home and buying another in the same market.

In a buyer’s market where prices are going up, you will sell your home for a premium and you will also over pay to buy and secure your next one. In a down market, you might have to discount your house to attract buyers, however when you buy your next home you will be most likely to get a great bargain.

Property that sits on the market for long periods of time have made mistakes in the selling campaign, either in their advertising campaign, selling method or a poor choice of real estate agent. All these factors effect a property’s price and the time it takes to sell. 

 

We recommend you use a vendor advocate for the best way to approach the current market place. Their role of a VA is to tailor and manage your selling campaign from start to finish to achieve the best result possible in your local market.

So is it a good time to sell your home? Yes, it’s always a good time if you’re buying another in the same market. If you’re pulling out of the market and not buying again, wait for a buyer’s market to come around.


Talk to us before you list your property for sale