According to Australian Property Monitors (APM), this past weekend 11 properties sold under the hammer in Adelaide. A fraction when compared to Brisbane’s 35, Sydney’s 465 and Melbourne’s 676.
Yet Ray White Adelaide has had success with in-room auctions.
“We have seen an average clearance rate of around 55 per cent, which is in line with or just above onsite auctions in Adelaide,” said Brett Pilgrim, selling principal and auctioneer at Ray White Adelaide.
“It is not just about the event though, it is part of a process. Those properties that aren’t selling under the hammer, are selling quickly after the in-room auctions conclude, generally resulting in less days on market.”
In a state that typically doesn’t view in-room auctions favourably, the Ray White Adelaide office has made them a focus.
“There’s a real belief within the industry that the crowd has to be standing out the front of the house. Agents are also very selective about what’s considered a ‘good’ house for auction in Adelaide. I believe when run properly, in-room auctions can work for any type of property.”
Other Ray White offices have had great success running in-room auctions, such as Ray White Surfers Paradise, under Andrew Bell, which is now in its 21st year of running ‘The Event’.
“The Ray White Group as a whole have had a particular focus on in-rooms for the last 12 months, and being the largest real estate group in South Australia it is having an impact on the marketplace,” Mr Pilgrim said.
One of the objectives of the in-room events is to make the auction experience less intimidating for buyers.
“An in-room event not only allows the agent to run a more professional auction, it provides a more comfortable environment for potential buyers. Onsite auctions can often become about the agent and drawing a crowd – residents in the street pop around to see who their new neighbour will be, and that can become quite intimidating for bidders,” Mr Pilgrim said.