In-room auctions?

It depends upon the result that you are after and the type of property that you are selling.

Most commercial/retail property is sold off site.

You would consider offsite for retail especially if the property was on a main road, under a flight path, on a train line or had tenants in the building.

If parties are interested in buying at auction they don't care about the venue.

Offsite auctions keep the tyre kickers away ie nosy neighbours or those just looking.

I have been to some done by Ray White, in terms of auctions the same as others except you can watch the other properties go (so a bit of drama and entertainment) and more comfortable (chairs) but as the properties are displayed quickly on wall projectors via powerpoint but of course you should have checked out the properties fully beforehand.
A minor thing is if you have expressed any interest in a property you are surrounded by agents begging you to bid (if you havent) or bid higher (if you have bid and stopped).

As an aside to this the first property I tried to buy I got at a Ray White in room auction.. after the giddy excitement of the auction nobody bothered to tell us until a few weeks before settlement we were notified by our conveyancer that the contract of sale wasn't valid because the Ray White agents didnt have both vendors present to sign.

[/quote] sweeping generalisation re clearance rates, recent clearance rate in Sydney was about 48% and Melbourne 67% (where the original poster is talking about).  The only place I can find that  range to be correct is Brisbane.   I am looking at http://www.businessspectator.com.au/bs.nsf/Article/Auctions-still-in-the-doldrums-EZ22T?OpenDocument   and Real Estate Institute sites.   Is there another source I should be looking at?

In room auctions do have their benefits. Firstly it allevites any concern of bad weather that can affect on-site auctions. As 'arandomperson' wrote, In room auctions tend to have a good atmosphere if done correctly, and as long as the venue is not too far from your location, it is worth considering. If you have the chance prior to the proposed auction date, see if the agency is having any more in-room auctions. If so, it's certainly worth having a look to see how they operate.

Don't be discouraged by the clearance figures under the hammer. What a lot of sellers fail to realise is that an auction that doesn't sell under the hammer is by no means a failed auction. Of course that is the ideal result, but a good proportion of auctions sell shortly after the auction, as some purchasers cannot meet the auction conditions of a cash, unconditional contract. For example, they may require finance approval. The other benefit of auction is that as there is no price, it allows the market to make it's own judgement on value, and a good agent will provide comprehensive feedback to indicate what the market thinks your property is worth. If you don't sell under the hammer, you will have a clear indication of market value, and can list the price accordingly. This will encourage a timely sale as opposed to marketing with a price, and possibly overpricing which will discourage buyer enquiry.

Seriously, in this market I would not recommend private sale. A common problem when selling privately is that potential purchasers will not provide accurate feedback as they will not want to offend you. They will say that they loved the property and at  the price represents value etc. However, unless they express immediate interest, it is unlikely that you will hear from them again. It is essential that you receive true & accurate feedback from the market when selling, as this will help you in setting a price consistent with market feedback to affect a timely sale. An agent works a conduit between the market and the seller, and potential purchasers are much more likely to give accurate feedback to a 3rd party (agent) rather than offending the seller directly if selling privately.

The whole in room auction from ray white is a scam.   What they are able to do is use a system to put pressure on the vendor to sell.
They use what they call an O level  which they will not offer a offer to a vendor before the auction.    they will use dummy offers to force the seller down.   then whilst in the in-room   they move around the room not really going any where.   Just to make it look like motion in the room.   this allows the bosses to put pressure on the purchaser and the seller.    they fudge there figures on clearance and will sometimes re run the same property.   there first four or five will sell    then the last ones are more likely to be passed. in

It has been bought down from Queensland because there market has slumped and to insure the ray white business still gets there money.
Most of the property's they sell make less then what they originally tell there sellers.

I have been to a few. There is a lot of atmosphere, and sometimes they do get a little crowded. Some people attend for market research rather than to do any bidding.

For some buyers, they may be interested in more than one property. If they miss out on one, they can bid in the next one. I have bought one that way.

You might get more bidders than at a standalone on site auction, where people have to race between different sites. If they arent too interested, then may may not attend the next site.