Sell your home at auction
Posted On July 19, 2021
If you intend to sell your home at auction, you will need to prepare and register it at least six weeks before the auction date. All your data and searches should also be ready in advance of the auction, well in advance of that date. The auctioneers will give you all the information about when the auction date will be and viewing times, as well as a deadline for the entry of your property. All your searches and details must be entered before these dates. the guidance price should be discussed with the auctioneer. The guide gives prospective buyers the amount they are likely to take for the home. The seller and auctioneer know the reserve price only.
Once the reserve price has been set, an attorney needs to be hired immediately. Auction houses fill out quickly, so your attorney must be ready to act. The attorney also has to prepare property titles and leases, if any. Some auctioneers may request that searches be conducted and some buyers may insist on seeing all of this information on or before the day of the auction. The auctioneer arranges tours and may arrange them in group lots or on certain open house days, especially if the property is empty.
Expect interested parties likely to want to conduct a survey, so make sure the surveyor can access your property. If you successfully sell your property at auction, the auctioneer will sign a contract on your behalf in the sales room and take a deposit from the buyer of 10% of the purchase price. At this stage, the sale is binding and neither party can withdraw without financial penalty. Sometimes the reserve price may not be met. You have the option of selling it at the lowest price to that bidder or reselling it again by another method.
The approximate cost of selling at auction is 2% of the selling price. There may also be an entry fee for putting your home up for auction. This cost covers things like the initial inspection and listing the property. The advantage of auctions may be that your property sells faster.