The numbers: Auctions v private treaty sales
Pre-COVID, the median time to sell a house was 51 days, but 29 days via auction.
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Fast forward to 2024, and while houses took just 10 days to sell by private treaty, auction sales took slightly longer at 18 days. However, recent trends suggest the tide is turning. By December 2024, the median time to sell increased to 16 days and dropped to 17 days by auction.
If the trend in days on market continues, auctions could regain their edge and sell faster than private treaty sales by late 2025.
What this means for sellers
While sales have been exceptionally fast in the past couple of years, auctions are about more than just speed – they offer sellers the opportunity to secure the best possible price for their property. Auctions bring together motivated buyers, creating a competitive environment where bids drive the price to its true market value.
Auctions offer a tailored selling experience
Selling at auction also gives sellers greater control over the terms of the sale. Settlement dates, deposit amounts and conditions can be set by the seller, giving them an upper hand in negotiations. Buyers participating in an auction must meet all conditions before the auction day, meaning sellers can avoid common delays associated with conditions including finance or building inspections.
Multiple opportunities to sell
Auctions provide sellers with three distinct opportunities to secure a sale:
- Before the auction: Some buyers may submit strong pre-auction offers to avoid competition. Sellers can choose to accept these offers if they meet their expectations.
- On auction day: The competitive bidding process often results in a sale under the hammer, providing certainty and a clear transaction.
- After the auction: If the property is passed in, sellers can negotiate directly with bidders or open the property to private offers with a clear starting point for negotiations.
Transparency and certainty
One of the key benefits of auctions is transparency. Buyers see exactly what others are bidding, which provides confidence in the process. For sellers, this ensures they are achieving a fair market price for their property. Additionally, sales under the hammer are unconditional, offering certainty and eliminating the risk of buyers withdrawing due to finance or other conditions.
