The auction method of sale provides sellers with the greatest opportunity to obtain ‘fair market value’ or a premium price for their property. An auction campaign also adds structure to the property listing and sale process and is regarded as the most effective way of marketing property for sale.
Should an auction listing not sell during the auction campaign, the chances to sell the property soon after are dramatically increased due to the increased amount of buyer enquiry that’s generated through marketing for sale by auction.
In addition to the benefits of being an ‘exclusive agency’, auctions have many other advantages, such as:
In this instance, your Harcourts auctioneer will pass the property in and inform any attendees of the next steps to take if they are interested in purchasing the property. In reality, this isn’t something that happens very often. With a robust and well thought-out marketing campaign, any home can attract prospective buyers.
In this event, your Harcourts auctioneer can pause the auction and come and speak to you, the seller. They will go back to the current highest bidder and ask if they’re prepared to increase their offer to a price at which you’re prepared to sell. If the bidder is not prepared to do that, your Harcourts auctioneer will then ask if you’re prepared to adjust your reserve price. That’s why it’s important for you to have a price in mind that whilst you wouldn’t be entirely happy with, you are prepared to sell at. If neither of these scenarios happen, then a sale cannot occur, and your property will be what is referred to as ‘passed in’.
It’s understandable that buyers might be nervous under the excitement and pressure of an auction. This is why it’s not uncommon for an auctioneer to be met with silence when asking for an opening bid. Some buyers will have a strategy and may wait to see what others at the auction might bid. So to get the auction rolling, your Harcourts auctioneer may choose to nominate a starting bid - this is referred to as a ‘vendor bid’. A vendor bid will only be used in order to create momentum during the auction and cannot be used above the seller’s reserve price.
After your Harcourts auctioneer announces the property as ‘sold’, it is then time to focus on the buyer. Your Harcourts sales consultant or auctioneer will then take the buyer aside and begin to process the contract of sale, straight away. The buyer will then make arrangements to pay the deposit. As the seller, you will be required to sign the contract and the sale will be concluded.