Property Auction

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Published: 08th April 2015
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There are real advantages in auctioning a property over listing a property for sale. A specialist auction agency can outline these for you. I am now retired and have no affiliation with any agency and I specialized in auction sales. Auction puts your property on a pedestal because there is no price tag attached to it. No one knows what a buyer is really prepared to pay for a property for a variety of unknown reasons to the agent and the vendor. That price can be above market opinion and I have seen that happen on many occasions. Mainly only genuine buyers are attracted to properties for sale at auction. These properties can be of every condition and position and type.

It's not just my opinion but almost all auction specialists I know are against advertising the property with a price range. This defeats the whole strategy in selling under the hammer. As previously explained what a buyer is prepared to pay is unknown. If the price is bordered buyers who could have paid more or less excluded themselves based on the price range offered when they may have bid not knowing the price.
Advertising is designed to create interest in the property. The bidding will follow.

The power of the auction program is sunk like putting a hole in a boat if you tell anyone the reserve price. The reserve price when reached is the price that the auctioneer will advise the bidders that the property will be sold. This is probably the most daunting aspect of auction to the vendor. What will I set the reserve price at he wonders? The best tip is to have faith that the home inspections and advertising has brought bidders to the auction floor and the reserve price has to be realistic enough to encourage further bidding when the auctioneer advises that it will be sold. My advise to help vendors in complex cases was to pay for a written valuation by a registered valuer. The market opinion of the real estate agent is also a guide. The big mistake once you have arrived at a reserve price is to tell someone else what it is. NOT EVEN THE AGENT. This way the agent can honestly avoid discussing the price. You should carry some agency cards to avoid direct questions on price. You hand the reserve to the auctioneer at the auction in a sealed envelope.

In the event that the property does not sell under the hammer the agent will negotiate with the highest bidder after the auction down the line usually resulting in a sale. A sale has no cooling off period if sold before (usually not recommended) during or after the auction. There are three possible reasons for the property not selling under the hammer. Firstly the day or time for the auction was not appropriate. Maybe a major event was on the same day or bad weather. Saturday morning and or a mid week evening is a good time when people are not at their employment. Secondly there was bidding but the reserve price was set too high. Be prepared to change it as the auction unfolds. The agent will help with this. Thirdly there was no bidding. Now don't panic all is not lost. In fact the auction program has provided a valuable service. It has provided market research to assist in putting an attractive realistic list price on the property in the event no sale is made on the day which continues for sale on an exclusive agency agreement. A sale usually occurs soon after.see more at

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