When the market tightens in a perceived state or otherwise, the last thing you should do is auction your house.....and the proof of that is in the current clearance rates.
As the market dictates the value of the property for auction....if you are selling in this type of market..........You are better off giving a price and selling on the open market.
As there are less and/or standoffish buyers at current auctions as they hold the cards.....as its a buyers market, or the perception of such.........you either get really lowball offers at auction......hence the appearance of low clearance rates, or the sellers reserve or sale price estimate is too far from the market expectation.....again affecting clearance rates.
So if you must sell.....setting the market a price and having more control over the price guide is the best way to sell imo at present.
The real estate agents get the "have to sell" customers to auction their property as the agent just wants it sold and knows the seller has too.
The buyers also understand this so offer lowball offers at auction and try to nick it cheap.
So what then happens is that no-one buys or gets the property too cheap at auction and the seller doesn't get a sale......so no-one really wins......and auction clearance rates suffer because of this.
Then inevitably.....
....the property does sell a few weeks down the track.....when the seller commits to a price, which he now has to lower through pressure to sell and the agent in his ear about how it didnt sell at auction.....
..and he sells for less than his "auction reserve" but still above what the vulchers were offering at auction.
