Why sell at auction?
There are two main advantages to selling by auction. The first is that an auction brings certainty to the selling of a property where there is so much uncertainty when selling by private treaty. The second advantage to the seller is that there is no upper limit on bidding.
What control do I have with selling by auction?
As with every property you own it, it is your money so you decide on the price guide, the reserve and of course, whether or not to sell by auction. If however your expectations are too high we may recommend that you sell the property by private treaty. During the marketing we will advise you of the level of interest and whether or not the price guide needs to be altered but again that is your decision as is the setting of the reserve price which is done in the last week immediately before the auction. We would refer you though to our explanation note on Price Guides & Reserves below as there must be a link between them and rules do apply on the application of that link.
When it comes to the auction event then you the seller have very little control either over who buys or of the final sale price other than of course the property cannot be sold for less than your reserve (again see below).
The guide price is given to assist buyers in deciding whether or not to pursue a purchase. It is usually, but not always, the provisional reserve range agreed between the seller and the auctioneer at the start of marketing. As reserves are not fixed until up to the day of auction, guide prices may be adjusted. Any changes in price guides, for whatever reason, will be posted on our website and in our auction room as an “addendum of sale”. Guide prices can be shown in the form of a minimum and maximum price range within which the reserve will fall or as a single price figure. Where a single price is quoted, the reserve will fall within 10% of the guide. The guide price is not the reserve price and both guide price and reserve price can be subject to change up to and including the day of auction.
The reserve price is the seller’s minimum sale price at auction. It is the figure below which the auctioneer cannot sell. The reserve price is not disclosed and remains confidential between the seller and auctioneer. Both the guide price and reserve price can be subject to change up to and including the day of auction.
What types of property suit auction?
In essence any property can be suitable to be sold by auction but historically properties taken to auction have been vacant properties and have sometimes been known as ‘3D’ sales. What is meant by that is that they are sales due to Death, Divorce or Debt. We prefer the properties to be placed in our auctions to not have been previously marketed by private treaty so that they are fresh. Properties that have failed to sell by private treaty can be made suitable for sale via auction but it depends very much on how realistic sellers are on price guides and reserves.
Auctions are very good ways of selling where there has been a dispute, as properties are sold in a transparent way which may also suit executor sales. It is a very fair way of selling, where everybody has the same opportunity. The only buyers that cannot bid at an auction are those that do not have the cash ready and available or that they have to sell a property to raise the funds. Invariably, for these types of property, those are not the buyers that you may wish to seek anyway.
Properties with problems either structurally or legally are often sold by auction so that sellers are not involved in abortive costs where sales fall through as they do with private treaty.
Advantages of auction
Selling by auction – what happens?
Why Use a John Francis Auction ?
Please call us for more information or attend one of our auctions to see how they work.