Everything you need to know about selling your property by auction
Selling a property by auction can be an effective way to achieve a quick sale and a great price for your property. It’s a popular method of sale in Australia, particularly in major cities such as Sydney and Melbourne where there are dozens of auctions every week.
Here is everything you need to know about the auction process and how to prepare your property for sale.
Choosing an auctioneer
The first step in selling your property through auction is to choose an experienced auctioneer. Their job is to guide you through the auction process and help you achieve the best possible outcome. Look for a licensed auctioneer who has a strong track record of successful auctions.
The best auctioneers are very good at creating an atmosphere of anticipation and excitement without building unnecessary tension at what is, essentially, a very serious and often stressful event.
If you can, go along to a couple of auctions to see them in action. You’ll quickly get a feel for their practice and will feel more confident knowing that you are in capable hands.
Setting a reserve price
The reserve price is the minimum price you are willing to accept for your property. It is set before the auction and is kept confidential between you and the auctioneer. Usually set in consultation with your real estate agent, the reserve price should be realistic and based on market conditions and the value of your property.
Marketing your property
To attract potential buyers to your auction, your real estate agent will set up a campaign to market your property effectively. This will usually include taking high-quality photos and videos, creating a comprehensive property description, and promoting the auction through various channels such as social media, email marketing, and print media.
Preparing your property
To ensure your property looks its best for inspections and on auction day, you need to prepare it thoroughly. This includes decluttering, cleaning, and making any necessary repairs or renovations. You may also want to consider staging your property to create an attractive and welcoming atmosphere.
Conducting inspections
Prospective buyers will want to inspect your property before the auction. The more people that see your home, the more competition there is likely to be on auction day. It is important to make these inspections as convenient as possible by offering flexible viewing times, which will help to generate interest in your property and increase the likelihood of a successful auction.
Auction day
On auction day, your auctioneer will conduct the auction and manage the bidding process in an orderly, professional manner. Potential buyers will register their interest and make bids on your property and all bids will be recorded to avoid any disputes or misunderstandings.
At some point before the reserve price is met, your auctioneer may place what’s called a “vendor’s bid” to encourage further bidding from prospective buyers. A vendor’s bid can only be made if it’s been announced as a possibility before the auction begins and must be below the reserve price.
As bidding continues, in increments usually dictated by the auctioneer and once the reserve price has been reached, the property is effectively on the market. From that point, the highest bidder will then purchase the property at the fall of the hammer.
There is no cooling-off period at auctions, with contracts exchanged and the deposit paid in full on the same day as the bidding.
Post-auction negotiations
If your reserve price is not met, the property will “pass in”, meaning it remains unsold. If this happens, you may choose to negotiate with the highest bidder or other interested parties after the auction, which could involve adjusting the reserve price or negotiating the terms of the sale.
In conclusion
In summary, selling a property through auction can be a fast and effective way to achieve a great price for your property.
By choosing an experienced auctioneer, setting a realistic reserve price, marketing your property effectively, and preparing it thoroughly, you can increase the likelihood of a successful auction.
If you are considering selling your property through auction, contact DiJones today to speak with one of our experienced agents and auctioneers.
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