There are many advantages to selling your home by auction. This form of selling a property can contribute to achieving a higher final sale price by increasing the competition of the potential purchasers who are bidding on auction day.
When setting your price prior to an auction you have the choice not to sell under the reserve, which is a price limit that you set based on the ideal price that you would like to achieve. If the bids on auction day do not meet the reserve figure set, your agent can negotiate with potential buyers on your behalf after the conclusion of the auction.
An auction contract is also unconditional and the terms and conditions that you set at auction will be bound in the sale and contract.
In advance of the auction, your agent will likely recommend an auctioneer and work with you on appointing this auctioneer. While your agent will be working to market your property in the lead-up to auction day, on an actual day, it will be up to the auctioneer to get the crowd moving and, on the road, to achieve your ideal sale price.
Your agent will work with the registered bidders who can register prior to or on the day of the auction and bid either face to face, over the phone or online. While your agent can’t provide you with the list of names of those registered, they can give you the level of interest in the property.
It is important to discuss the minimum price that you would be willing to sell the property for with your agent in advanced of the auction. They will then use this figure to set your reserve price. Once the bids reach the reserve price on the day of the auction, then the auctioneer will announce the property as ‘on the market’, meaning that the property will sell for the highest bid above this figure.
If the property does not meet to reserve price that you have set, then you are free to not sell the property on the day of auction and the agent will work with potential buyers to negotiate a possible sale after the auction.
Auctions can heighten stress levels in the lead up to and on the day. It is important that you are informed and have a support network no matter the outcome. They also have the potential to gain a final figure that is higher than your ideal sale price.
Discussing all your options with your agent during the initial campaign will help you make a decision that is right for you.