An auction day guide for sellers
Auctions are a great way of galvanising interest in a property then selling it within a set timeframe, but for many sellers, auction day comes with its fair share of nerves.
Will the property achieve the price you hope for? Will buyers turn up and bid? What happens if your home is passed in?
With that in mind, here’s an auction day guide for sellers to ensure everything runs smoothly.
The auction day lead-up
The lead-up to auction day involves the marketing campaign along with property inspections or perhaps even virtual tours by prospective buyers.
Based on the level of interest and feedback from buyers, your agent and auctioneer will then sit down with you close to auction day to help you understand the feedback received and set the reserve price for your property.
This reserve is the minimum you hope to achieve for the property, and once bidding reaches this point, the property is officially on the market and set to sell on auction day.
The auction of any property follows a pretty strict process, in accordance with relevant state and territory laws.
Final public viewing
In the case of most auctions, there’s a final public viewing before the property goes to auction.
This usually occurs 30 minutes prior to the scheduled auction time.
It gives prospective buyers the opportunity to register to bid, and might also result in some last minute fresh interest in your property.
Prior to commencing the auction, your auctioneer will address all bidders and assembled members of the public to make them aware of the auction conditions that apply within your state and territory.
With the legal disclosures out of the way, it’s time to commence the bidding.
The auctioneer will call for opening bids and then accept subsequent bids.
The auctioneer can also guide the increments of this bidding, and in most states and territories, can use a vendor’s bid to get the auction moving.
While the auctioneer might guide the bid increments, ultimately it’s up to the bidders when it comes to what increments they are prepared to advance with.
Reserve reached and on the market
Once bidding reaches the reserve price set by the sellers, the property is officially ‘on the market’. That means it will be sold to the highest bidder from that point forward.
Once the property sells under the hammer, the buyer is required to pay an immediate 10 per cent deposit, with the balance to be paid on settlement.
What if the property doesn’t reach reserve?
If the bidding fails to reach reserve price, the auctioneer will consult with the property owner to see if they wish to revise their reserve.
If they don’t, the property will be passed in. At this point the highest bidder is often given the chance to negotiate with the seller.
Alternatively, the property might proceed to a private treaty sale or a further auction later down the track.
But it’s important to note, a passed-in result is not necessarily negative. Often a successful sale is negotiated in the days immediately following the auction.
Looking to sell your property
If you’re considering selling your property, why not chat with one of our friendly Eview agents on 1300 438 439 to organise an appraisal and understand the state of play in your area?