The Mystery Equation Behind Misleading Auction Clearance Rates
The decision of if, how and when to sell is always a difficult one, but today’s market presents challenges that sellers have never encountered and while no one has a crystal ball, there is some sound advice to consider when it comes to selling your home, particularly during a global pandemic.
In an article published for News Corp Australia Network in August last year, property guru, Andrew Winter, gave expert insight on how to achieve the best outcome when selling your property. Despite what most vendors would assume, Winter, warned of the perils of going to auction, saying “an auction is categorically not the best way to sell your home”.
“It can put unnecessary and artificial demands on you as a seller and place you in a precarious and highly stressful all or nothing situation,” the article sites.
With 30 years of experience in real estate, Winter went on to say, “there is an intense focus on the Sydney and Melbourne auction markets but across the country most properties are not sold this way”.
So what is a homeowner to think when many agents push auction clearance rates as a selling point in their listing presentations – and more to the point, what is they best way to sell while restrictions are still being imposed on the real estate industry?
Comedian, television and radio presenter, Charlie Pickering, was at his satirical and poignant best when he recently uncovered the truth behind auction clearance rates.
In his show The Weekly, Pickering described auction clearance rates as a “complicated piece of industry advertising snuck into the news to makes us think the housing market is doing better than it is”.
“The number is given a huge makeover before it is shown to the public,” he said.
Pickering said real estate advertising giant Domain calculates auction clearance rates only on “total reported auctions”.
“They only count an auction if a real estate agent reports it… there is an incentive for real estate agents to report successful auctions rather than failures and that can skew the figure higher.”
With houses sold prior to auction also counted in the clearance rates, the figures often give vendors a false sense of security in the auction system.
While there is a plethora of information and advice being thrown at prospective sellers right now, one thing is for certain - the property market has been turned on its head and now might just be the time to go with the quiet achiever and a real estate agent you can trust when selling your most prized possession – your home.
Author: Natalie Gallenti Brekalo