Selling your home at an auction can be stressful and nerve-wracking, especially for first timers. But remember that this is an exciting new entry point in your life and that you can overcome anxious feelings by ensuring you’re well prepared and knowing what to expect. Here are some tips to help you get ready for the big day.
Before the Auction
A few days before the auction, arrange a meeting with your real estate agent to run through important details such as:
- The reserve price
- Number of anticipated bidders
- How you’ll keep in touch with your agent throughout the day
- The amount each bid will be raised each time the current bid is outdone
- What to do if the reserve isn’t met, and
- How any vendor bids will be handled.
Ask your agent for a schedule of events which will detail the agenda for the day, tell you where to be at what time and answer any other questions or concerns you may have.
Remember to stay positive and realistic. This also means you shouldn’t get too excited and start disclosing details you shouldn’t to friends and families. It’s best to keep your expected selling price and any other important information to yourself. Rumours can spread and hearing vendor expectations can scare away potential buyers.
Make sure the property is looking great for the pre-auction inspection. It’s your final chance to impress prospective buyers, so ensure the place is in tip top condition. This includes the interior as well as the exterior and gardens.
Agents will generally open the property for inspection at least half an hour before the auction begins. This gives bidders a chance to have a final look at the property. Agents also display rules and information related to the auction for bidders to view.
During the Auction
Your auctioneer will begin by introducing themselves, making any mandatory legal announcements and then describing your property to generate excitement. After this, calls for bids will commence. If there are no opening bids, the auctioneer may begin with a vendor bid.
Bidding will lead to two potential outcomes:
- Reserve price is met – The property will be declared as “on the market”. Once the highest bid has been made, the auctioneer will drop their hammer and declare the property sold.
- Reserve price is not met – The property may be “passed in” by the auctioneer. At this point, you are obligated to negotiate privately with the highest bidder. If both parties cannot agree on a sale price, other bidders may be approached to try negotiate a sale. If a property is passed in on a vendor bid, this must be stated in the auction report.
Regardless of the result, remember to keep calm. Your property will not be sold for under the reserve price. If the auction doesn’t go as planned, a good real estate agent will support you and help you plan the next steps.
After the Auction
What happens after the auction depends on the outcome of the bidding process. If the property didn’t sell, your agent will discuss your options with you. This may be to re-advertise and market the property for sale. If the property did sell and your reserve price was met, the purchaser will be invited to sign the contract of sale and pay the deposit.
You should keep out of the way until contracts are signed to avoid delaying the process. Once you counter sign the contract, an unconditional agreement will exist between you and the buyer. Ensure you confirm that the deposit has been paid before this happens. After this point, you may meet with buyer and even put up the “sold” banner together!
If you’re looking for a good real estate agent to help you sell your home in Geelong, Highton, Grovedale or surrounding areas, get in touch with Barnett Real Estate for expert local advice.
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