Selling a Auction - What to Expect on the Day
Here's a small list of what to expect from an auction property sale.
What to Expect
Auctions are an exhilarating and sometimes nerve-wracking experience - after all, it's your precious home that's going under the hammer.
As a seller, you're probably wondering what auction day has in store for you. Here's a small list of what to expect from an auction property sale.
On auction day, prospective buyers are encouraged to view the property one last time before they bid. This means you should ensure your property is looking spotless and well-presented - especially if you've chosen to host the auction at your property rather than an office or conference room.
Your agent will need to supply documentation of the property at least 30 minutes before the auction.
This is a requirement by law, so make sure this information is well displayed and easily viewable for all interested parties.
A vendor's bid is used to encourage bidding from buyers. This is placed by the auctioneer or another legally permitted person on the vendor's behalf to assist the property reaching its reserve price.
The amount of the bid needs to be below the reserve price, otherwise it could push the bid much higher.
If a vendor bid is going to be made then it needs to be declared before the auction actually begins.
When you list your property for sale by auction, you still have the ability to accept pre-auction offers before the auction day deadline.
However, in order for this to be rewarding, the offer needs to be solid and stand out to catch your attention. Otherwise, you could allow your property to go to auction and see what the market will give you for your home.
The Auctioneer's Job
We’ve all seen the drama of an auction on TV – the auctioneer with their quick fire speech, waving hands, pointing fingers. But what do they actually do?
Essentially their role is to control a public negotiation process where potential buyers are competing to buy a property.
The auctioneer has to make sure the process takes place in an orderly and legal manner and while there is often an element of showmanship in the role, with humours asides and jokes, the auctioneer must always conduct him or herself professionally.
Before the auction commences they will need to announce terms and conditions in accordance with state law and any rules that surround your auction in particular.
They will encourage bidders to go higher but at the end of the day, each bidder decides how much they are prepared to pay and the seller decides whether they’re prepared to sell at that price.
All bids must be acknowledged and recorded, often by assistants so there are no misunderstandings over who has bought the property and for how much.
A good auctioneer can ready body language and create an atmosphere of fun and entertainment to take the pressure off a very serious process.
They know how to prevent disputes and how to handle any problems that can occasionally occur.
Legislation differs in all states and territories in relation to buying at auction so if you have any queries check with your agent and/or legal professional
Selling at Auction – Some Extra Things to Consider
When you sell at auction there is normally no cooling off period – the contracts are signed and the deposit is paid on the day.
A 10% deposit is normally paid by the buyer/s with the balance due on the agreed settlement date
The deposit is held on your behalf in the agency’s trust account for an investment account
Prior to settlement the property remains your responsibility, so it is important to ensure you maintain your home insurance during this period
Once the contract is signed the process of transfer can begin. You may use the services of a solicitor of conveyancing company to handle transfer on your behalf
As part of the transfer process, arrangements will be made for the balance of the purchase prices to be paid as directed by you to your bank account or to any party or account you nominate.
Settlement day is the date when the balance of monies owning less costs are paid, keys are handed over and the property then becomes the responsibility of the purchaser