Ray White WA CEO Mark Whiteman said the group’s three Auction Spectaculars this year had been so successful plans were now underway for an even bigger event to be held at the Perth Convention and Exhibition Centre on December 13.

Mr Whiteman said Ray White was confident of listing 100 properties at the fourth of its trademark Auction Spectaculars, which are now regarded as the most open and transparent property negotiation process in Western Australia.

“The value of auctions as a method of sale in WA has continued to grow in stature and the Ray White Auction Spectaculars have been trail blazing events,” he said.

Mr Whiteman said the latest Auction Spectacular at the Perth Convention and Exhibition Centre on September 5 was attended by around 300 people and resulted in a clearance rate of well over 62 per cent.

“There were 32 properties put up for sale and the clearance rate on the day was around 50 per cent with many properties later sold following negotiations,” he said.

“There was an expansive range of properties submitted for sale ranging from palatial waterfront homes in Point Bouvard, character houses in Victoria Park and Cloverdale, mixed zone homes in Perth as well as units and vacant blocks.”

A development site in Landsdale achieved the highest sale price for the day of $3.9 million. Many properties sold for well above the reserve price including a Rivervale home which attracted 22 bids and sold for $51,000 above reserve.

“In the current market there are plenty of buyers and the number of properties available is drying up substantially,” Mr Whiteman said.

“This presents a real risk for sellers that they may be underselling. Auction is the only way to ensure that you have achieved maximum price and haven’t under sold.”

To view a list of Perth Auction Property, visit Ray White Auctions.

No curious neighbours, bad weather or public embarrassment if no one turns up.

If that sounds like your idea of auction-day bliss, in-room auctions maybe for you.

Fans of in-room property auctions claim the method – commonly used to sell antiques, artworks and cars trumps the street auction because it creates a more captive buying audience.

It may also appeal to timepoor property investors seeking a quick snapshot of a market.

And those who prefer the transparency of a public auction over a private sale, but without the public spectacle of a street auction, may be intrigued by this new breed of bidding.

Bringing bidders together at a neutral location, such as a hotel room, has been popular in Queensland and New South Wales since the 1980s.

The Real Estate Institute of Victoria says Ray White is the only group in the state holding regular in-room home auctions.

Up to 50 homes are listed in one session and each auction is usually preceded by a bigscreen presentation of the home’s best features.

The event must run according to auction laws.

IN-ROOM UPSIDES

Greater control of how an auction unravels and no risk of inclement weather cooling buyer enthusiasm are two top reasons in-room auctions are in vogue, says Ray White general manager Victoria Marcus Williams.

Any property- entry level through to high-end luxury – can sell off-site, he says.

“We don’t believe they will replace street auctions. .. but you haven’t seen anything yet,” Mr Williams says. “Inroom is only going to get bigger.”

His boss, national chief executive growth Mark McLeod, says more than half the group’s sales are achieved at in-room auctions. Some multi-million-dollar property owners do not want people walking around their luxury pads, so they prefer to sell on neutral turf.

He knows of “at least” 100 examples of the agency group suggesting up to four suitable properties to a prospective buyer, all of which went to auction in one day and attracted bids from the buyer

“We get the advantage of maybe getting the underbidder their second choice,” he says.

“With a street auction, you lose those people. They walk away.

“And I have seen investors come along to an in-room event and bid on every property. These are often time-poor people who like the convenience.”

Sweeney executive officer and freelance auctioneer Martin Ewart says many buyers and sellers are keen to avoid public embarrassment.

“Bidders can put their hands up without being as self-conscious and the sellers can avoid watching their homes pass in, in front of all their neighbours,” he says.

IN-ROOM DOWNSIDES

With only one agency group actively marketing in-room auctions in Victoria, it is hard to know where the spin stops.

Can vendors save money choosing an in-room auction?

Mr Williams says “generally speaking” sellers save money.

Ray White held its first inroom auction national roadshow, Auction Spectacular, in March.

Mr Williams says 58 homes went to auction in Victoria during the roadshow and he expects a similar number at a “spectacular” in Melbourne on June 21.

“The publicity generated by the tour is enormous, so the vendor is not having to pay for that,” Mr Williams says.

“Auctioneer fees are reduced, too, because in-room auctions mean the cost is split between lots of vendors.”

Yet Mr McLeod says advertising and auction fees are similar for on-site and offsite auctions.

Metropole buyer advocate Catherine Cashmore says vendors may reap minor savings from in-room auctions because they may not pay for the “little vans that run around in the morning putting the little signs out on the street corners ahead of a street auction”.

The former Ray White agent says in-room auctions do not allow buyers to put space between themselves and the agents.

“It can be quite an intimidating atmosphere if you are not used to it and the pace of bidding can be quicker,” she says.

REIV chief executive Enzo Raimondo says apartment and multiple-title sales may be better suited to in-room auctions. He agrees the confines of a room may turn off some buyers because there is “nowhere to hide”.

But he cannot see how one type of auction could be cheaper than another.

‘You have to pay to tell people it is happening, no matter where it is held,” Mr Raimondo says.

Sunday Herald Sun – 7/6/2009
Caroline James