Selling at Auction

Understanding the Process of Selling at Auctions

Selling at auctions may seem like a fairly simple and uncomplicated process at the onset – you chooses an agent, set up an auction and invite potential buyers, and sell your property to the highest bidder; except that it is not. Selling property at auctions involves an exhaustive set of legal formalities, and it is crucial for a property owner to be thorough with the various steps involved in the process to make sure the auction is completed without any glitches. At Compare Conveyancing Melbourne, our experts take care of the entire process on your behalf to make sure you have a profitable auction. Before you decided on selling at auctions, it is best to brace yourself with an in-depth knowledge of the process.

Working Out a Minimum Price: You can begin the process regarding selling by putting a minimum price on your property in consultation with your real estate agents. At Compare Conveyancing Melbourne, we offer clients several options for doing so. Of these, the most popular are vendor bid and opening quote. Vendor bid is technically a bid made on the behalf of the property owner by the auctioneer. The other alternative is to let the auctioneer make an opening quote to throw the auction open. The purpose of both the options is to let the bidders know that you would not be willing to sell the property below the given amount.

No Cooling off Period: Typically, there is no cooling off period when you sell a property through the auction process. It is, therefore, crucial to figure out the legalities of the contract to the smallest detail beforehand. People buying properties from an auction can use loopholes such as ‘on there signing hereof’ clause to delay payments. Our experts work diligently to comb out any such clauses that can be used against the vendor to help our clients get the best deal from an auction.

Drawing up the Contract: A buyer can ask you for a copy of the contract before the actual day of the auction and add or amend clauses to it. Though such amendments are not binding on the vendor, you may find yourself in a precarious situation if the alterations have been made by the highest bidder offering a lucrative deal on your property. The Compare Conveyancing Melbourne team is trained to make professional negotiations in such a situation and arrive at a common meeting ground.

Your Right to Say No: It is a widely professed myth that it is mandatory to sell your property to the highest bidder. Therefore, we focus on making our clients aware of their rights before proceeding with the auction process. You can say no to the highest bidder if there is a disagreement over the clauses of contract, or if say another bidder offers you a higher price on the property even after the auction has been closed provided the contract has not been signed.

Our in-depth knowledge coupled with years of experience in the real estate business puts us in a position to protect the rights of our clients and make sure they get the best deal on property sale.

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