What is a Real Estate Auction?
A real estate auction is an innovative and effective method of selling real estate. It is an intense, accelerated real estate marketing process that involves the public sale of any property.
How will auction benefit me?
The real estate auction is a win-win proposition for everyone involved.
BENEFITS TO THE SELLER:
Buyers come prepared to buy
Assurance that property will be sold at true market value
Exposes the property to a large number of pre-qualified prospects
Accelerates the sale
Creates competition among buyers—auction price can exceed the price of a negotiated sale
Requires potential buyers to pre-qualify for financing
The seller knows exactly when the property will sell
Eliminates numerous and unscheduled showings
Takes the seller out of the negotiation process
Ensures an aggressive marketing program that increases interest and visibility
BENEFITS TO THE BUYER:
Smart investments are made as properties are usually purchased at fair market value through competitive bidding
The buyer knows the seller is committed to sell
Buyers determine the purchase price
Auctions eliminate long negotiation periods
Auctions reduce time to purchase property
Purchasing and closing dates are known
Buyers know they are competing fairly and on the same terms as all other buyers
With our many years of experience in this marketing method our aim is to facilitate an unconditional sale at a price you consider acceptable within a specific time frame.
With a proven record of success in Auction we will do everything we can to assist you.
THE MARKETING CAMPAIGN
Marketing your home is essential when Auctioning.
Our experience has been that often the stronger, larger the campaign the more likely you are to attract the attention of prospective purchasers.
Your consultant will assist you with selecting a campaign that fits your needs and your budget whilst ensuring your property is highly visible in the marketplace.
Your Property Consultant will organise Open Homes for 3 weeks prior to the Auction day. These Open Homes will run for half an hour.
It is essential during the Auction campaign that you receive as much feedback as possible. Your Property Consultant will contact all viewers and prospective parties during your auction campaign. We do this to ensure you are fully equipped with the current market’s feedback in order to prepare you for your decision making, come Auction Day.
WHAT HAPPENS IF A BUYER WANTS TO SUBMIT A PRE-AUCTION OFFER?
The offer must be unconditional and presented with 10% deposit attached.
Your Property Consultant will set an Auction Reserve Meeting and will bring the reserve documentation with them. The reserve is confidential to the parties present.
Our Auctions are held out the front on the property. We will have an open home prior to the Auction and extra staff will be on hand to register all bidders on the day.
The reserve price is set at your reserve meeting prior to the Auction. The figure is confidential between you, the agent and the auctioneer. A good reserve should be an acceptable walk-away price for you and appear achievable based on market feedback.
As the vendor, you must consider your position carefully because just as easily, the bidding could finish there and then and you’ll have to sell at that price. If you decide not to lower your reserve, the agent will usually ask the highest bidder if they want to raise their bid. If the property meets the owners reserve, the highest bidder will be the purchaser at the fall of the hammer.
Your final option is to pass the property in. The highest bidder usually has the right to negotiate with you first, and will often buy the property straight after the auction. If the auction has been properly conducted and the property was priced correctly, there is usually not a huge gap between the highest bid and the reserve.
Auctions can be stressful and emotionally-charged events for both buyers and sellers. Important decisions such as the reserve price for the seller, and the highest price you’re willing or able to bid as a buyer, should always be made before the day of the auction. This way you’ll make a decision based on logic.
What is a Vendor Bid?
It is a bid made on behalf of a vendor (owner) not a buyer.
Who can make a vendor bid?
Only the auctioneer.
Does the auctioneer have to declare a vendor bid when it is used?
How many bids can a vendor make?
What is a reserve price?
The price below which a vendor will not sell. This price may vary.
What does 'passed in' in mean?
The bidding has not reached the vendor's reserve price and the property is not sold.
If the property is 'passed in' on a 'vendor bid', what happens then?
The vendor, via the vendor's agent, is at liberty to negotiate with any genuine buyer.
Do I have to register prior to bidding at an auction?
Yes. If you intend to bid you must register. The auctioneer will not accept any bids from an unregistered bidder.
Do I need to pay a 10% deposit if i buy today?
Yes. Unless prior arrangements are made to pay a lesser amount.
Must I sign the contract on the day of the auction if I buy?
Yes. To buy on the day you must sign a contract and pay a deposit.
Can I 'cool off' if I buy under auction conditions?
No. The law does not allow you to cool off if you buy under auction conditions.