Selling a property at auction

by Jonathan Adams

Selling a property at auction has numerous benefits which includes a better price, especially if the property requires renovation. Selling your property through auction is quicker and useful for a property which is difficult to value. For selling a property at auction, certain steps should be followed:

Find if the property is suitable for sale at auction

Almost all properties can be auctioned, depending on a realistic reserve price being agreed. Some properties can be better suited for auction compared with others. You have a better chance at selling a property at auction than selling the property through private deal. As auctions are attended by builders, developers and real estate professionals, you have a chance for a higher price because of the competitive bidding. The competitive bidding helps your property reach the market value through the bidding steps.

Get advice

It begins with supplying the address and description of the property to be sold, along with other important details about the property which you may feel necessary. Once the auctioneers have the information, they will put together a ‘no obligation’ appraisal for determining if the property is suitable for auction. The auctioneers arrange inspection of the property after finding out the suitability of the property and agreement on the reserve price.

The key to success – Marketing

Marketing is the secret for selling a property at auction. The maximum value for your property is possible when you are not limited by any criteria and target the widest range of buyers – professionals and private. Good auction houses will inspect your property and prepare detailed description, publish it on their websites, auction catalogues and advertise it through emails and posts. Auctioneers publishing regularly in local and professional magazines and newspapers are a good choice.

The auction

Remember, contract comes into effect at the time when the hammer falls, and a binding contract is initiated. There can be no change or negotiation after that and the buyer will be asked to produce identification and a deposit of 10% of the purchase price. The buyer has 20 working days to pay the remaining amount of money; else the buyer loses the 10% deposit.

This article is for information purposes only.
Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

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