To sell house at auction, first of all you have to get an auctioneer. A good auctioneer is important to get a good sale since they have to attract bidders and increase the price they are willing to offer. When looking for an auctioneer, remember that established companies will more likely have a long list of prospective buyers and this means that the more people can see the details of your property, the higher chance of selling during auctions.
After getting an auctioneer, you will decide together for your property’s reserve price which is also known as the minimum price you are willing to accept for the property. You also have to specify the guide price of the property. This may be different from the reserve price but will provide potential bidders idea of how much the property can be sold. The key is to make this low to make more people interested in the auction but keep it realistic so that bidders can keep up as the prices increase during the auction.
Advertising and marketing of your property will begin weeks before the actual bidding. A catalogue with details of the property will be created which includes information about viewing arrangements. Prior to auction, prospected buyers must view the property, done in a block basis. It is easier to set up and more advantageous in creating competition before the auction. Also, be informed that some people may like to survey first or visit with architects with them.
Viewing can be done with the auctioneer’s staff or all by yourself. You may have to arrange it with tenants if you have them so that the property can still be viewed. Though there are sellers who decide to keep the property vacant before the auction. Take note that if you do not agree with viewing, you will have lesser chance of selling the property.
Offers can be placed by auction buyers on your property the day before the auction. You can definitely accept one of these offers and you can decide right away if you really need to sell your house fast to meet your needs. And this may be the defining factor of how well your property will be during the auction. The auctioneer will inform you about the offers along with some advise to see if the offers are anything near the guide price. As you wait for the auction day, you increase the chances of aggressive bidding which might lead to increase of offers made. Make sure to check your options and then decide what is suitable for your demands.
Most auctions happen in a bigger place or function halls and most people find it an exciting experience. You may find it awesome to be there if you are also participating in the bidding though it is not a requirement to attend the bidding.
When your lot is up for sale you may show it with a photograph together with the description which will tease bidder’s taste depending to the auctioneer. If you were able to sell the property that day, the buyer is mandated to pay the 10% deposit right there. This is practised to lessen the chances of backing off and this way of selling a lot is more definite than the usual approach.
If by any chance, your property was not able to reach its reserve price and no one buys it in the auction, one option is to start a deal with a buyer after the lot ended up with a price less than the reserve. This ensures that a deal will still continue and the auction house’s rules and regulations remain.
The buyer is also given the legal pack or directed to buyer’s solicitor who will coordinate with your solicitor. The buyer is required to complete the balance within 28 days to settle the agreed amount. If the purchaser was not able to do this, they will lose their initial deposit and may be required to pay you for incurred losses due to unsuccessful sale. This is the edge of auction sales than those in the open market.