Auction is one of the methods of property sale. Auctions became a lot more popular choice for people selling their properties. Take a look at the statistics from Real Estate Institute of New Zealand- Wendy Alexander, Acting CEO, made the following statement in March 2021:

“…we’re seeing houses sell at their fastest pace in a March month ever and we’ve seen the highest percentage of auctions the country has ever seen since REINZ began keeping records showing just how quickly the market is moving.”

More than third of properties across New Zealand are sold through auctions- 34%. That means that auction provides a better alternative, but why is that?

When you consider house prices going up by 24,3% nationwide only in the last year, it is often hard to appraise properties as to what they are worth to someone when the demand is steadily increasing. One of the advantages vendors are getting from the auctions are a fixed timeframe to sell the property. It is advertised with a auction date, which forces buyers to act quickly. A sale at the auction being unconditional is a reassurance for the vendor that it is unlikely to fall through. Buyers that are bidding at the auction see their competition and what is happening in that room and can increase their bids to win. By bringing all buyers together it offers a transparency of the sale process and competitiveness among buyers, which results in increase of the auctioned property price.