Usually, people sell out their properties thorough an estate agent or privately, but there are situations where selling your property through an auction is the right choice.
Selling a house at auction involves setting the reserve price for the house, which is a usual practice and is not disclosed to the bidders. On the day of the auction, potential buyers gather at your place and start bidding for the house. Once the highest bidder is found, that person automatically becomes the buyer of the house. S/he then signs a contract and pays a deposit, usually 10 percent of the final bid, at the spot. If that person is unable to pay the advance, the auctioneer can consider the second highest bid, or he may re-open the bidding.
Selling the house at auction not only helps you avoid the hassle of negotiating your asking price with potential homebuyers, but also increases the final selling price, since a number of potential buyers come to see it at the same time. So, it can be a good way to get the highest possible price for the house.
Another good thing about selling your property at auction is that it does not close the door for individual offers. If you receive a lucrative offer before the auction itself, you can simply accept it and cancel the auction, or you can reject the offer in the hopes of getting a higher price at the auction.
There are several other advantages of selling through an auction. When selling the house at auction, you naturally set a date for the auction – this creates a sense of urgency which attracts potential homebuyers, and the end result is a quick sale. This also allows you to plan more effectively.
Selling at auctions also saves you the stress of having to set an asking price, though you do have to research a bit to find out how much your house is worth. Since there is no reserved price, buyers make offers based on what they see and go to the top end of the price range they can afford – at the end of the day, you can be sure of getting the best possible price for your house. Another major advantage is that the buyer will already have the money arranged.
It is pertinent to mention that like hiring an estate agent, holding an auction also involves a fee that you will have to pay whether the house sells or not. Do not forget to check with your real estate agent for more details regarding this. Use registered post to make sure all your documents reach the conveyancer safely, and in time. You can also deliver important documents by hand.