Why Auction?
There are two ways to sell a property - with or without a price. A property with a set price is known as selling by Private Treaty. Whereby the Vendor waits to find a purchaser who will pay that price or negotiate and come to a mutually accepted price. The other option is marketing without a ceiling price and encouraging competition for the home - this method is known as Auction. The Vendor has control as to what price is acceptable to them on the day. However, most Auction properties are sold prior to Auction where a mutually acceptable price has been reached.
Just a few advantages of selling by Auction are:
• There is no price restriction on the home
• The home is in a program and runs to a schedule - the Vendor knows in advance what this is and can plan around it
• Advertising exposure is maximised
• A deadline sale date encourages purchasers to make a decision
• Sold under the hammer on the day
• If not sold under the hammer, the Agent then immediately negotiates with the highest bidder for a successful outcome
The Agreement
By law a contract must be signed between the Vendor and the Agent. The Auction Agency Agreement states how much commission you'll pay, the term of the Agreement, the cost of the advertising program and the details of the solicitor appointed by the Vendor.
The Reserve
Is set on the day of the Auction and is given in writing from the Vendor to the Auctioneer. Only the Agent and the Auctioneer need to know your reserve price, it is best not to discuss this price freely.
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