Selling Your Property By Auction
Selling Your Home At Auction Your Property. Our People. SOLD!
At auction buyers bid against each other in a public forum. As the seller, you will have a reserve price prior to the auction. This is the minimum amount you will accept for your home.
Benefits Of An Auction:
- Buyers bidding against each other can maximise your sale price.
- With each emotion on auction day, buyers can become very competitive.
- Auction provides a final day, enticing and encouraging buyers to act quickly.
- Promotes a stronger advertising campaign to reach buyers.
- Allows you to negotiate with the highest bidder if your home is passed in on auction day.
Prior To Auction Day:
Leading up to the auction day, you should have a strong marketing campaign in place. This is normally a 4 week campaign. Some buyers may try and secure your home prior to auction day by submitting an offer, however it is important to discuss with your agent whether they feel the offer is in line with the current market. If you are happy with the offer, contracts can be exchanged prior to the auction but under the auction conditions.
If your home goes to auction, you will need to set a reserve price. This will be the minimum amount that you will accept as the sale price of your home. The reserve price is set prior to the auction and is not disclosed.
On The Day Of The Auction:
On the auction day, your auctioneer will have the right to have one vendor bid on behalf of you, the vendor; the auctioneer will announce that "This is a vendor bid". When the bidding reaches the reserve price, the highest bidder will be committed to purchase your home on the fall of the hammer. If bidding does not reach the reserve price and your home is 'passed in', the highest bidder will then have the right to negotiate with yourself and your agent.
Signing The Contract Of Sale:
The successful bidder must sign the contract of sale and pay the nominated deposit which is normally 10% unless otherwise negotiated prior to the auction. There is no cooling-off period for homes or property sold under auction conditions.