First, you must have an auctioneer. A good auctioneer is very important to get a good sale because they are experts in stirring up interest among the bidders and make the price they are willing to offer much higher. When selling houses at auction, it is very essential to consider established companies for they are more likely to have the largest list of prospective buyers and the more people can access them to see the information about your property which can lead to a big possibility of selling during auction day.
Once you have chosen an auctioneer, the two of your will then decide for the reserve price of the property. It is the lowest price you are willing to accept for the property.
You also have to specify the guide price of the property which could be different from the reserve price but will provide idea to potential bidders about the amount a property can be sold. The key is to set it to lower amount so as to attract people to the auction but not so low that bidders might be frustrated if the price rises up higher during the actual bidding.
Few weeks before the auction happens, advertising and marketing plans should start. A catalogue indicating property details will be provided to show information about viewing arrangements. Just before the auction, prospective buyers will wish to view the property and this is done on a block basis. This is easier to deal with and more advantageous as well in starting competition even before the auction starts. Take note that some people may wish to have an architect with them while surveying the property.
You or the auctioneer’s staff can conduct the viewing. There might be a need to set up and arrangement with tenants if you have them to make the property accessible. Some sellers just decided to keep their properties vacant prior to the auction. Remember that if you do not allow viewings, there will be lesser chance for you to sell your property. Read some guidelines in conduction auction viewings.
The auction buyers can make offers on your property the day before the actual action. It is up to you if you want to accept one of these offers and the decision is all yours if you must sell the house quickly depending in your current needs. However, this may indicate something about your property auction the next day. The auctioneer will advise you about all offers and might tell you to be patient until offers are almost near your guide price. As you wait for the auction day, you are increasing the chances of competitive bidding which may lead to the price exceeding the first offer made. Again, you must decide if you will accept or not the pre-auction offer. Make sure to consider your options and decide wisely.
Joining an auction can be very exciting and it is done in a hall or large function rooms. Being there can amuse you especially when your property is up for bidding though your attendance is not a requirement.
As your lot comes up for sale, a picture of it can be presented by the auctioneer to entice the bidders. If you were able to sell the property that day, the buyer should pay you 10% deposit right away. It can greatly reduce the chances of buyer pulling out so the sale becomes more certain than the standard way.
If for some reason your property does not reach the reserve price and not sold during the actual bidding, there is still an open option to start a deal with the buyer when the lost finished with the lower price than the reserve. This way, a deal can still happen with the auction’s terms and conditions intact.
The buyer will either receive the legal pack or be directly sent to buyer’s solicitor to liaise with your solicitor. The buyer needs to complete the balance within 28 days to finish the sale. If he or she cannot comply, the deposit will be nullified and they may be required to pay you for incurred losses brought about by unsuccessful deal. This ensures auction sales to be completed than those made in the open market.
