Auction verses private treaty: what’s the best sales method?

first_imgRay White Mermaid Waters principal Mitch Palmer says a property going to auction needs to have a large buyer audience and therefore can create good competition.More from news02:37International architect Desmond Brooks selling luxury beach villa15 hours ago02:37Gold Coast property: Sovereign Islands mega mansion hits market with $16m price tag2 days agoHe said the biggest mistake an agent could make was taking a niche property to auction.“A niche property could be something that has a large negative, like backs on to a main road, an out-there facade or something that’s non traditional,” he said.“When you take a property to auction it has to have a good demand.”Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 1:28Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -1:28 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels720p720pHD432p432p270p270p180p180pAutoA, selectedAudio Tracken (Main), selectedFullscreenThis is a modal window.Beginning of dialog window. Escape will cancel and close the window.TextColorWhiteBlackRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentBackgroundColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentTransparentWindowColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyTransparentSemi-TransparentOpaqueFont Size50%75%100%125%150%175%200%300%400%Text Edge StyleNoneRaisedDepressedUniformDropshadowFont FamilyProportional Sans-SerifMonospace Sans-SerifProportional SerifMonospace SerifCasualScriptSmall CapsReset restore all settings to the default valuesDoneClose Modal DialogEnd of dialog window.This is a modal window. This modal can be closed by pressing the Escape key or activating the close button.Close Modal DialogThis is a modal window. This modal can be closed by pressing the Escape key or activating the close button.PlayMuteCurrent Time 0:00/Duration 0:00Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:00 Playback Rate1xFullscreenAndrew Winter: Location, location, location01:29Michael Kollosche, managing director of Kollosche Prestige Properties, tends to put a listing price on properties he is marketing rather than take them to auction.“Our view within our organisation is that the prestige sector market doesn’t have enough depth to warrant us taking properties to auction,” Mr Kollosche said.“We don’t believe you will achieve the best outcome for your seller under auction circumstances unless you have a property that will appeal to a lot of people and will likely have a lot of demand.” Kollosche Prestige Agents managing director Michael Kollosche says a property going to auction needs to appeal to a lot of people.He said as properties climbed in value, the number of potential buyers dropped considerably. “When you’re looking at properties for $4, $6, $10 and $15 million dollars the number of qualified buyers will be far less compared to properties priced from $1, $2 and $3 million.“If you look at prices pre GFC when credit was easily available there were a lot more bidders at those bigger auctions.“You could have six, seven and sometimes 10 bidders at a $10 million property. Now it’s unlikely you will have that many unless of course it’s a commercial sale.” MORE NEWS: HOME SNAPPED UP IN LESS THAN 20 MINUTES AT AUCTION MORE NEWS: BUY A HOUSE, GET A FREE BOAT Would you sell via auction?THINKING of buying or selling under the hammer?An auction can be the most transparent way of participating in the property market, but it’s not always best according to property experts.CoreLogic data reveals the Gold Coast recorded a 52 per cent auction clearance rate over the weekend with 44 properties taken to auction.center_img Auction at 7 Pindari Ave, Burleigh Heads earlier this year. The property sold under the hammer for $1.1085 million. Picture: Jerad WilliamsRay White Mermaid Waters principal Mitch Palmer, who auctioned a Mermaid Waters house for $1.54 million on Saturday, said he was taking an average of three properties to auction every weekend.“We don’t auction every property,” Mr Palmer said.“For us it’s got to be a property that has a large buyer audience and therefore can create good competition,” Mr Palmer said.last_img