For anyone that is selling property in an auction, it can be stressful. If you have never done it before, there can be a lot of questions that you might have about the process and what to expect. Here you can see we have broken it down to a couple stages.
Before the Auction
Make sure that a day or two before the auction, you meet with your agent. They can help you finalize your details including, but not limited to:
- Reserve price, what happens if price is not met
- How many bidders are expected to attend
- Communicating with the agent during the auction
- Bidding increments
One of the things you will want to have handy is a schedule of the auction day. This can tell you some detailed information on topics like where to be that day, along with whom and what you should have along with you.
You might also notice that before the auction happens, there might be some attempts to attract people to it. Your agent will assist in putting up sign boards to advertise the auction and attempt to draw people in.
Lastly, right before the auction, there will be an inspection for thirty minutes where people can get a look at the home or property, so this is the time will want to make sure your property looks its best.
During the Auction
Once any statements are said (usually required by law) the auctioneer will give some benefits of the property and highlight the positives. Once all introductions and comments have been made, then the auctioneer will start the bidding with the crowd. The auctioneer will control the flow of the bidding.
If your reserve price is met from the auction, then the property is declared to be “on the market.” Once the highest bid has been placed, the auctioneer will drop their hammer, and this signifies that no more bids can be placed.
However, if your reserve price is not met, then there are other options. If the auctioneer passes the property, then it is required you have private negotiations with the highest bidder. If there isn’t a resolution, then the auctioneer might talk to other bidders to negotiate a sale.
After the Auction
What comes next will be entirely dependent on what happened in the auction.
If your property did not sell, then you will need to discuss your options with your agent. They can best direct you on where to go next with the process.
If your property was sold then a contract of sale will be sold and the deposit will be paid. Before you sign the contract, make sure the deposit has been paid. Once all of this is done, the sale is complete.