What You Need To Know About Auctions
- Auctions are a method of selling real estate.
- Auctions have an end date, ie. Auction day by when a sale will more than likely occur provided the correct marketing and price guide was adhered too.
- Prospective buyers have a preconceived idea that sellers who take their property to auction are more serious about selling than those properties that are offered for sale via Private Treaty.
- Auctions create an environment of competition amongst buyers – this more often results in competitive bidding and the seller achieving a premium price, sometimes 10-20% above the reserve price.
- Auction day is when the property is up for sale and the successful buyer once his/her bid is successful, the buyer will sign contracts and the contract becomes binding with no cooling off period.
- Another advantage of auctions is that buyers can buy the property before auction if the owner receives an acceptable offer before auction day.