The auction market is bracing itself for a busy 2022 as more buyers and sellers engage the auction process to transact properties. While there is still a widespread misconception that the auction market are usually distressed sales, nowadays we are seeing different types of property sales at the auctions. These include owners’ sales, sheriff’s sales, developer sales and even MCST (Management Corporation Strata Title) sales.
Selling your property can be an enormous task in itself, but owners looking to auction it off to the highest bidder can become something of an event. Putting up a sign or having a sign specialist do that for you, finding the perfect auctioneer to sign a contract with, and just preparing for the big day itself are just some things you may have to take care of. Whilst auctioning can be an emotional roller coaster, it is very exciting and as a result, auctioning has gained much popularity.
We have provided some tips to help you understand everything and make the auctioning process easy. This will ensure that your properties can sell for the maximum price. We recommend that you integrate them into your selling process.
Auctioning is when you want to sell a house quickly in a short, limited period. Part of the appeal of auditioning is there’s a time limit given to selling negotiations which can significantly drive up the price of your home. Creating urgency among buyers, especially for a property in high demand, is one of the main advantages of auctioning. By doing so, the seller can get a price driven up by the competition.
However, there are downsides. If the house is not getting much traction and the bidding and interest is low, you might not get the price rise you were hoping for. So, working with a good auctioneer and doing your homework to get the best possible outcome for your sale is essential. Keep reading to find out how to make the most of the auctioning experience and bring in a good deal for your home.
Talk to an auctioneer
First and foremost, you’ll want to discuss what an experienced professional auctioneer has to say about your property and to find out the possible price range your property can go for. Look into an auctioneer’s recently sold properties, their track record, and the price range they’ve sold for previously. It’s good to look out for any properties they’ve auctioned out similar to the property you’re trying to sell. It can give you a better idea of how much you can expect.
Once you find an auctioneer capable of handling your home sale, ask for an evaluation of your property. You can do this by emailing or calling them and supplying a description and address. The auctioneer will then put together a ‘no obligation’ evaluation which will tell you whether or not the property is suitable to be sold off in an auction.
Looking at the costs
Now that you have an idea of what your property might be able to sell for, it’s time to decide if you want to go for the auctioning option by considering the price. Auction fees can vary, but you’ll have to pay for entry fees and commission. You’ll also have to pay for legal fees, which may vary. Even with slightly heightened expenditures, you can rest assured that your property will not go any lower than the agreed-upon price during an auction.
The reserve price and security
Keep an eye on property prices around your area by going to open houses, looking at previous auction results, and comparing transacted prices. As the seller, you must set a reserve price that you’ll get regardless of circumstances. Do not disclose the reserve price to anyone besides the auctioneer or your agent. This is a form of security for a seller, meaning you will not receive less than the reasonable amount you have agreed upon. Once a sale is finalized, you will be able to receive the amount in just a few weeks.
Develop a marketing strategy
A good marketing or advertising strategy should be looking out for private buyers and targeting a wide range of professionals to receive the highest rates for your sale. After your house has been inspected, auctioneers will take care of the information distribution process. They will do this by publishing an auction catalog and posting the information on their websites . This will then be distributed by email and postal services. Auctioneers and agents usually have a comprehensive buyer database that they may also reach out to distribute and advertise your property.
Good presentation is everything when deciding to sell. Presentation of your property can also determine whether you get your home for its total value. Make sure your property looks well maintained before putting it on the market.
We hope this article proves helpful and enables you to auction your properties more easily.
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