Most people prefer to sell their house with the help of an estate agent, usually because they believe that they will receive the best price for their home. However, it might be a good idea to consider selling your house on auction – the preconceived idea that selling a house on auction is a desperate attempt to keep the bank manager from the door is slowly but surely changing.
There are quite a few benefits of selling your house on auction . Auctions are often the best way of selling your property when you are in a hurry. While selling your house with the help of an estate agent or privately can easily take months, selling your home on auction can take as little as 4 weeks. Auctions also have the benefit of attracting serious buyers – bidders need to register before the auction starts and usually have to pay a deposit upfront even if they do not buy the property in the end. Because the bidding happens quickly, potential buyers are required to make their bids in the heat of the moment – a fact that leave them little time to think about their decision. This is often the reason people pay more for a property on auction.
Probably the most important part of selling your house on auction is choosing a reputable auctioneer or auction house to assist you in this process. Take a look at advertisements in newspapers, ask around and do a few internet searches. A reputable auctioneer would be registered at the South African Institute of Auctioneers. When you are satisfied that you found a suitable candidate, explain to the auctioneer what your expectations are. He or she should explain the process and costs involved to you and keep you up to speed with developments. You will also be required to set a reserve price for your house. This is the lowest price that you would be willing to except from a bidder. It might also be a good idea to request the help of an independent valuator to determine what your house is worth before setting a reserve price. If the reserve price is too high, potential buyers might lose interest. You will also need to sign a contract stating the terms and conditions of the auction.
The auctioneer will usually take care of the marketing of the property on your behalf. This will include listing the property in its auction catalogue and on its website. It will give potential buyers the opportunity to take a look at photographs of the property beforehand and get information about the date and place of the actual auction. It will also explain the terms and conditions of the sale. Interested parties might want to take a look at the actual property before the auction. Make sure the house is clean and tidy for those unexpected visits!
While auctions can be a great way of selling your property, it is important to understand that selling your house on auction does not mean the sale is guaranteed. Bidders might not want to offer you the minimum price. On the other hand, there is no maximum price and you might get a better price for your property if there is more than one interested party.
The easiest way of ensuring that you are comfortable with selling your property on auction is to educate yourself. The auctions link on your favorite property website is a good place to start this process.