Today, selling a property at an auction has increasingly become popular because more homeowners are attracted to how simple, secure and fast this method is.
The apparent increase in the number of sellers who prefer to bring their properties to the market through local property auctions has caught the real estate industry’s attention. What’s great about property selling at an auction is that you can set a reserve price. Doing so allows you to know the amount you can obtain before your property goes under the hammer. You can also achieve a quick sale with the assurance that it won’t fall through at any moment.
Criteria that Determine a Good Property for Auction
Property auctions are the most desirable alternative method when it comes to marketing properties. They are the best if you need a wider geographical marketing scheme or if your property isn’t easy to assess for its value. These are the metrics to consider when selling a property at an auction.
- A property with small-scale comparable sales or other information to evaluate market value correctly
- A property that is distinct based on where it is located or its nature
- A property with high carry costs
- A property where the potential buyer is identified but you want to determine the terms in which the property is sold and confirm the value
- Changeable markets either move up or down fast
- When you want to manage the transaction: from the property’s marketing, advertising, what information is worth sharing to buyers to the moment the property is being sold and closed out
Benefits of Selling a Property at Auction
With an auction, your property can be sold within 7-10 weeks from the time of retention. This saves you a massive amount of money by removing management costs and marketing. Apart from this, the advantages of auctioning your property are the following:
- Offers unparalleled opportunities for you to control the overall process of selling.
- Provides a structured sale, maximising value and reducing any risk.
- If conducted properly, property auctions can increase the likelihood of selling your property by up to 100%.
- The selling program is created to include you in the process and to render comprehensive reporting throughout the entire auction event.
- Your property portfolio can also be sold.
- Your property is shown at its best and on a predetermined schedule adding more convenience on your part.
How Do You Buy a Property at Auction
It can be quite daunting to procure a property at an auction. However, with today’s advanced tools and the right advice from a property buyers agent, it can be an economical way to extend your property portfolio or step into the world of property selling.
So, how do you buy a property at an auction? Here’s how.
- Explore the Property
Oftentimes, auction houses release a catalogue showing various properties being sold during their next auction before the exact auction date. To be in the know if the property is on early sale or withdrawal status, you need to register first.
- Verify the Average Property Cost
You need to know the property’s real cost for you to find a bargain at a property auction, as well as to set a maximum amount for it. To check a property’s average value, many resources are now available online for you to use.
- Proper Documentation
If everything goes well and you are successful with your bid, you need to provide the auction organisation with pieces of documentation and specific information.
- Bidding Process
When it comes to the bidding process, it can be complicated at times. You can follow some good tips through experience, but if you opt to follow the rules then you should obtain results that are in your best interests. Getting a buyers agent will also be helpful as they know the ins and outs of a bidding process.
- Purchase Completion
You will ready the final balance of funds after you’ve signed the contract and showed the auctioned property to your solicitor in time for completion. If you want to have other checks taken out on the property, such as electrical or gas tests, you can do so.
On the day of completion which is stated in the contract, you will complete the purchase of the property. By then, you can get the keys from the auctioneer.
What to Look Out for When Purchasing a Property at an Auction
It’s essential to research on the property as much as possible. It’s common for properties being sold at an auction to remain empty for months or more, that’s why no one’s doing the maintenance or keeping an eye. You can drive by and take a glimpse of what you’re getting yourself into prior to bidding.
Also, get as much information on the neighbourhood as you can. Discover what same-sized properties in the area are valued at, and check what they’ve been selling for. Doing so will give you a better idea of what property to bid. Remember, a great deal is what you’re looking for.
Ari Agency: Your Trusted Property Buying Service
At Ari Agency, we have a team of buyers agents specialising in helping people like you to buy anything from small studios to multimillion-dollar properties. Whether you are a first home buyer looking to upsize, downsize or invest in real estate properties, the services we offer are all about exceeding your expectations. For further details about our services, call us on 0405 428 471.