Auction hints for sellers

Real Estate auctions have become a most popular method of marketing and selling property in Australia.  The method offers substantial benefits for both buyers and sellers.

Some of the benefits of a real estate auction for sellers are: -

• Unconditional (cash) contract with a 10% deposit.
• No "cooling off" period for purchaser.
• Quick sale.  A time limit is set on negotiations.   The result is decisive.  The property is sold on the "fall of the hammer".  There is usually 3 to 4 weeks of advertising lead up to auction day.
• You obtain the best possible price.  Bidders are in direct competition with other buyers.  Strong competition for the property, may result in achieving a higher price than a sale by private treaty.
• The inspection times, auction and settlement dates can be arranged to suit your requirements.
• You set your own reserve price (minimum price), which is not disclosed to anyone.
• Sellers have 3 opportunities to sell their property - through an acceptable offer before auction, on the day, or through negotiations conducted afterwards, if the reserve is not reached at auction.
• There is equal opportunity for all interested parties to bid.  Executors, Trustees and Attorneys are absolved to a degree from criticism that the highest possible price was not obtained.
• Public auction assesses the market value for properties that are unusual, hard to value, or of special value to a particular buyer.
• The seller may stipulate the conditions of the auction to suit their circumstances and with the assistance of professional agents and auctioneers, the seller is in total control of the sale.

The procedure is simple

At the nominated and advertised time and place, buyers are invited to submit offers in the form of bids.  The seller sets a reserve price (if applicable) and bidders compete to offer the highest price, having reached or exceeded the reserve.  The seller can then be confident the property's true market value has been established.

Select your agent and auctioneer

Be sure they are members of the Society of Auctioneers & Appraisers of South Australia and the Real Estate Institute of South Australia.  Membership gives you protection and an assurance of your representatives' ability and experience.  Members subscribe to a Code of Ethics and a Code of Conduct.

Utilise the experience and knowledge of your auctioneer or agent.  Seek their advice on marketing, presentation, time and place of auction.

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