Why auction property

Make sure you know how much the deposit will be and check which method of payment is required so you can arrange for sufficient funds to be available.

Check the small print Don't forget to check the terms and conditions of the auction house you choose to use, by entering a bid you are agreeing to them. Be punctual It is advisable to arrive at the auction well before the advertised starting time. Any additional information or changes to a property will be available in an Addendum or will be announced by the auctioneer before the auction starts.

Make sure you are aware of any alterations as they could have a bearing on your decision to buy. Understand the difference between guide and reserve price Be aware that each auction property is initially offered at a guide price and is also subject to a reserve price. The guide price is the starting price at which bidding will commence, whereas the reserve price is the minimum amount the seller will accept.

The reserve price is not disclosed to bidders but can be up to ten per cent higher than the guide price so bear that in mind when bidding. Make sure your bids are clear and concise When the time comes, make sure your bids are clear; some auction houses will give you a paddle or something similar so that the auctioneer may easily identify you when you bid. It's easy to get carried away but try to remain calm and within your set budget.

Never mind what typical real estate agents tell you. Never mind what you read in the papers. Auctions are a stressful, financial minefield for consumers. Despite the booms we've had in many areas, there are still thousands of sellers who don't realise, until it's too late, what really happens to them at auction. The reserve price is the lowest price a seller is prepared to accept, after 6 weeks of intense torture and conditioning. And that becomes the central focus of the auction. There are two parties in a sale price negotiation: a seller and a buyer.

The buyer's final price may never be known. There is no procedure at an auction for determining the highest price a buyer will pay. Only the highest price of the losing buyers may be known because they stop bidding once they reach their limit. But the buyer who is the highest bidder often buys at less than their limit. Most buyers at auction buy for less than their limit, which means most sellers at auction under-sell their homes. You can only get the highest price if the focus is on the Buyer's Highest Price.

Everyone knows your lowest price. Not so with the buyers. By then it is too late for the sellers. It seems as if the price goes up at auctions. Auction House. Book your free valuation. Why Sell at Auction? Speed There is no faster way to sell your residential property, mixed use, commercial property or land. Success Auction gives you a better chance of selling your property than by estate agent alone.

Legal and Binding Once the hammer has fallen, you have exchanged contracts with your buyer and they are legally committed to the purchase. Marketing We have developed a targeted database of local, regional and national buyers, so your property can be proactively sent out to these people. Open House To help develop the potential for competitive bidding, we organise Open House viewing days.

Competitive Bidding The aim of an auction is to generate interest from two or more prospective buyers, which will lead them to bid against each other in the auction room, and will help your property to achieve the best price on the day.

Best Price Properties for sale at auction will often achieve a final sale price in excess of the original guide price set, and regularly the result is in the region of what might have been acceptable for sale through an estate agent Private Treaty sale. Set Price With private treaty sales through an estate agent, the offer price agreed is not necessarily the price you will finally receive, with discounting due to any survey findings or last minute gazundering.

Timescale If you are looking to sell your home or property quickly, then auction is probably the best option for you. A month from finding out about properties and putting a deposit down is a fairly short time. This includes arranging a survey of the property, having your lawyer check the legal pack and getting your finances in order.

Once you successfully bid, you buy. A winning bid is a contract to buy the property. If you do back out, then the seller takes your deposit with them. And while some of these people might become friends, others will become enemies.