One of the most common ways of selling properties is by auction. They are considered one of the fastest ways of selling any property at a profitable rate. But is it worth it to sell a house or any real estate through auction?
The thing with auctions is that when several buyers indulge in a price war for a property, the heated competition pushes up the prices of the property very quickly. Buyers are in the mode of competition and are often desperate to get their hands on the property. In case you want to sell your house very quickly, the auction is without any doubt one of the best ways. However, the process of auction could be a headache and is surely not everyone’s cup of tea! If you are also looking forward to organizing a vintage auction and are looking for professionals to handle the work for you, you can find here.
In case you want to sell your property through auction then this guide is perfect for you! Here, you will learn about some do’s and don’ts of selling your house through an auction.
Do’s of selling a house by auction
Here are some things that you should take care of before the auction day. These actions will make the process smoother and would help you in selling the house at the best possible prices:
1. Find an auctioneer
You will find so many auctioneers around you that it might be a little overwhelming for you. You will find auction houses as well as auction departments that will have estate agents. So which one of them should you choose? Take a look at how many properties they have sold and at how much. You will get an idea of who is doing better.
2. Reserve prices
The very first thing that you will have to do is to set a decent reserve price. Sit down with your auctioneer and decide the reserve prices. This would be the lowest price that you would sell your house at on the auction day. In case the bidding is below the reserve price you would simply not sell the house. In that case, the auctioneer would have to withdraw your property. Thus deciding the reserve price is a very crucial step.
3. Guide prices
After you have decided on the reserve prices, the next thing that you should do is decide upon the guide price. A guide price will give an idea to the potential buyers of how much their property would sell for. The auctioneer could decide on a guide price that is lucrative for the market. Remember that, your guide prices could be less than the reserve price but don’t have to necessarily sell at this guide price.
4. Make the contract beforehand
A lawyer has to make a legal contract that will contain all the terms and conditions regarding selling the house. Auctioneer’s brochure should be handed over before the auction day. Auctioneer’s brochure will have a copy of the contract as well.
5. Opening property for potential buyers
Before the auction day, you will have to open the property for the potential buyers. Once your house would be listed in the catalog of the auctioneer you should be ready to open your property. Buyers would want to see the property for themselves before bidding. Therefore you should have prepared your property even before the auction. Make sure your house is always looking at its best.
6. Before the auction offers
There is absolutely no problem in getting offers before the auction. In the end, it is your decision if you want to say yes to the offer or wait for the auction day. Although, it is quite risky to say yes to the offer before the auction because during the auction the prices can get very competitive easily.
7. Auction day
Finally, you will have to wait for the auction day and hope that everything turns in your favor. You don’t have to be there at the auction if you don’t like it. Some people find auction day to be overwhelming because of all the rush.
Don’ts of selling a house by auction
Here are some things that you should not do while selling your house through an auction.
1. Refurbishments works
Avoid any refurbishment works once you have listed your property with the auctioneer. Sometimes properties that require some renovations and improvements sell better. This happens because buyers often want to renovate and improve the house according to their liking and thus they prefer houses where there is some room for renovations or improvements.
2. Never say no to viewings
As already mentioned earlier before the option is taken some of the buyers will come to give your property. Never say no to them. Do not worry about these viewings as they might attract more buyers and therefore will make the competition more intense and profitable for you on the auction day. Besides that, buyers will not invest their time in bidding on a property they haven’t seen. Allow the potential buyers to see your house in its present condition so that they can know what they are bidding for.
3. Don’t worry about the cost of selling a house
Do not worry about the cost of selling the house. In fact, selling the house through an auction is one of the cheapest as well as quickest ways to sell any property. Additionally, you will cover all the costs involved once your property is sold at a good price in the auction.
4. Don’t worry about the selling price
Be optimistic, do not worry about the selling price you will receive. And since you have set up a reserve price, in case offers at the auction are less than the reserve price your property won’t sell. You can later look for other options to sell your property. Therefore you should not worry about the selling price at all.
These were some of the do’s and don’ts of selling the house through an auction. Auction is one of the best ways to quickly sell any property at a profitable rate. The process of auction is pretty secure, so you do not have to worry about any legal procedures at all.