Seller’s Guide to Residential Property Auctions

Do you want to sell a property without the hassle of lengthy negotiations, months of property viewings, and offers to purchase falling through at the last minute?

If you’re looking to sell your property quickly and at true market value, then listing for auction is the perfect solution.

One of the biggest myths surrounding residential property auctions is that the sellers are in financial distress, however, there are many other reasons, such as ease, convenience, and the guaranteed date of sale which make real estate auctions an appealing option for sellers.

In addition, certain types of property do lend themselves more readily towards auction rather than traditional sale methods. These can include properties in need of major renovation. It can also include properties that are in high demand, as intense competition among bidders is likely to result in a higher sale price being achieved.

Before listing your property for sale at auction, you’ll need to decide on your reserve price. This is the minimum amount that the property will sell for. This amount remains undisclosed to bidders and if the reserve is not met by the end of the auction, the seller has the option to either accept a lower bid or no bids are accepted, and the seller retains their property. In the event of the latter, they can either schedule another auction or list the property for sale via traditional means.

Once the auction is concluded and a bid has been accepted, the buyer must then pay a deposit of usually between 5 and 10 %, as well as the auctioneer’s fee, and then has a month to pay the balance of the sale amount. This allows you as a seller to be able to plan accordingly, knowing the exact date on which the funds from the sale will be in your account.

If you’re considering selling your property via auction, contact Home and Hectare Real Estate on 041 581 1744 or email info@homeandhectare.com, and one of our Property Specialists will assist you in your sale.