The most important thing firsts, having an auctioneer is a must. A good auctioneer is essential to achieving a good sale because they can spark interests among the bidder and increase the amount they are willing to offer for the property. When selecting an auctioneer, it is very vital to note that the more established companies definitely have a wide array of prospective buyers and more people will check them to see the details of your property and this translates to bigger chance of getting sold on auction day.
Once you’ve got an auctioneer, you must both decide about the reserve price for the property. It refers to the lowest price you are willing to take for the property.
One more price that needs to be specified is the guide price. It may vary from the reserve price but will guide potential buyers about the property’s market value. The secret to sell your house at auction is keep this minimal to catch people’s attention to the auction, but make it realistic at the same time so as not to disappoint bidders when the price goes farther during the actual bidding.
Weeks prior to the auction, you have to polish your advertising and marketing strategies. A catalogue with full details about the property along with information about viewing arrangements must be prepared. Prospective buyers will also ask to view the property before the auction which is done in a block basis before the auction. This is more convenient to set up and has an advantage in inducing competition just before the auction. Be ready that some people may want to bring an architect with them while surveying the property.
Viewing the property may be done with the auctioneer’s staff or just you alone. You may set an agreement with the tenants first if you have them so as not to interfere with viewing schedule. Good thing is that there are sellers who keep the property vacant before the auction. Be reminded that not agreeing with the viewing of property may lower your chance of selling the property.
Auction buyers can place their offers to your property before the auction day. You have to decide whether to accept any of these offers especially if it is urgent to sell your house quick to meet some demands. This may be the determining factor of how well your property will go during the auction. You will be informed about other offers through your auctioneer together with some advise if the price is near the guide price. While waiting for the auction day, you improve the chance of higher bids which means an increase in sale amount. Carefully check your options before deciding according to the situation.
Auctions usually take place in a hall or big function room and many people are interested to take part. You may be amazed to participate especially when your property is up for bidding though it is not a requirement to attend there.
If your lot is already up for sale, an image may be first shown to entice bidder’s appetite depending on the auctioneer’s decision. If your property is bought on the day, the buyer must pay you 10% deposit at that moment. This ensure that the buyer will not back off and definitely makes selling a lot more certain than the usual approach.
When your property does not meet its reserve price and was not bought during the auction, you can still negotiation a deal with a buyer at the time that the lot has finished at a lower price than the reserve. You can still proceed with the deal and the auction terms and conditions still apply.
The buyer will either be given the legal pack or sent to the buyer’s solicitor right away to be the one to assist your solicitor. The buyer will be asked to give the balance within 28 days for sale completion. If the buyer cannot meet this expectation, they will lose their deposit and may need to pay you for losses made due to unsuccessful sale. This is why auction sales get completed easily compared to those made at the open market.