|How can I sell my property at auction?
Some answers to commonly asked questions about auctions
What is a real estate auction?
What are the benefits of selling by auction?
Your property obtains 'special project' status.
Your property gains prominence through high profile marketing.
More customers see your property.
No price marketing - attracts a wider range of customers.
You receive more regular market feedback.
Deadline auction day - creates urgency and a finite selling time.
An auction creates potential for a premium through customer competition.
You control the selling price with a reserve which ensures that your property is not under sold.
You choose the possession date.
Your title is accepted by the customer - an unconditional sale
What is the reserve price?
The reserve is the minimum figure that the auctioneer is instructed to sell the property for. This figure is generally established as a result of feedback from interested parties during the marketing period and is usually set by the client prior to the auction.
How do people bid at the auction?
The auctioneer will ask for an opening bid and will then nominate the increments by which the bidding can be raised. Interested parties simply attract the attention of the auctioneer by:
Raising a hand
Calling out a bid
Nodding when they catch the auctioneer's eye
The successful bidder will be asked to pay the 10 percent deposit and sign the auction contract.
Can I sell before auction day?
Yes, in most cases you can. This is called a pre-auction offer. A customer may submit an offer on the Auction Particulars and Conditions of Sale Agreement. If this offer is acceptable to you, all other registered customers are given the opportunity to submit their offers if they wish to. You can then decide which offer suits you best.
Can someone bid when they have to get finance?
Because interested parties must be in a position to bid on a cash unconditional basis at the auction, they are advised to organise through their bank or mortgage broker pre-approval to bid up to a price they are prepared to pay.
Can someone bid when they have a property to sell?
There are two options:
If they are in a sound financial position they may arrange bridging finance to cover any delay in settling their property.
They may request a longer settlement date, giving them time to sell and to settle their property.
What if the property doesn't sell?
If the reserve price is not reached, the property is passed in to the highest bidder. The highest bidder is then offered the first right to purchase the property immediately after the auction at the client's reserve price. If a sale is not completed immediately following the auction, the property will be offered for sale to all other interested parties.