News Limited has recently under taken research to identify the success of auction v private treaty sales with results to be released shortly, but the evidence is clear that auction was the winner. From an extract from the Rismark Research , professor Hardman said:
“We find that, even after accounting for dwelling quality and location, auctioned properties sell for (statistically) significantly more than those sold by private treaty, but only in the upper price brackets. The auction premium is typically in the range 24%.
The results were statistically significant for Sydney, Melbourne, Brisbane and Gold Coast. “
A full report of the research, methodology and findings will be released shortly by News Limited .
This evidence validates what many real estate agents who promote the method of auction have believed for a long time , and that is that competition of buyers drives real estate prices up, and the main role of an agent is to promote a property extensively to ensure competitive bidding takes place amongst emotionally connected buyers .