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Buying and Selling at Auction

Buying or Selling at Auction

When deciding whether to sell a property via auction or private treaty, many people don’t understand the crucial role that the auctioneer plays in the sale.

 

Some view the auction process as an unnecessary expense but, in fact, choosing to sell your home via auction with a qualified auctioneer can be incredibly beneficial.

 

So, what is the role of the auctioneer and how will their involvement increases the chances of your property selling?

 

I’m a big believer in the power of auctions and want to stress that there is so much more involved in auctioneering than calling out numbers. The auctioneer plays a vital role with their job being to engage potential buyers, while trying to negotiate the best possible outcome for the sellers. All of this must be done within a short period of time, under high pressure circumstances.

                          

Auctions are a great way to sell property and they attract more potential buyers as price isn’t a hindrance, sellers usually secure a sale either on auction day or shortly after, and the true market value of a property is confirmed during the bidding process.

 

Buyers: Please do not be afraid of auctions.

 

When you find a property that will be offered for auction and you are a qualified buyer, ask yourself the following questions:

What is this property worth to me?

Does it tick my boxes and provide what I’m looking for?

What is the maximum I am prepared to pay?

If you do decide that you will attend the auction and bid, then I suggest the following:

You do need to bid on a cash unconditional basis therefore you will need to speak to your financier  to determine if your finance be pre-approved.

Get a Building and Pest inspection done. Be ready - be informed.

Talk to the agent - they are there to help you, let them know you have interest. Be honest - tell them if you can/cannot be a bidder on the day.

And remember, you can request a change to the standard terms of auction i.e. 30 days settlement can be extended; deposit can be reduced to 5% - if the seller knows and agrees.

 

On the day there are many of tips to assist you as a buyer but the biggest one for me is bid with courage and conviction - let the other bidders know you are here to buy. Often buyers try to nudge up the price in small amounts when often one big bid would unsettle the other bidder and maybe stop them bidding.

 

In closing, we are highly trained auction agents at Harcourts South Coast and we are here to help - talk to us whether you are a buyer or a seller. We can talk you through the possible scenarios, assist you in bidding and work with you to ensure you get what you want out of the day/auction process.

 

- Mark Forde