| Tips to make auction day a success
Preparing for an auction is a significant undertaking, involving a lot of hard work and money to present your home to potential buyers and achieve a great result on the day. You will have undertaken numerous tasks, such as setting a date, researching and setting a reserve price, running a marketing program, holding open houses, liaising with potential buyers, providing contracts, and generally putting in a lot of time, effort, and money into getting ready for the big day.
After all this hard work, you want auction day to go as well as possible with a great sale result. Here are some helpful tips for auction day itself:
Note: Each state has its own set of regulations around how auctions are run. It is essential to be aware of your state’s individual rules and regulations.
Final Public Showing
Just before the auction, there will usually be a final public showing, which is one last chance for potential buyers to inspect the property. At this showing, the agent will display legal documentation regarding the property and the auction.
In most states, potential buyers must register before the auction starts to receive a bidder’s number. There are substantial fines for any illegal auction conduct, and there are many laws surrounding the auction process. It is illegal to intentionally disrupt an auction, disrupt another bidder, make a false bid, or bid as a non-genuine buyer.
When the Auction Starts
Your auctioneer will invite registered bidders to start with an opening bid. The auctioneer may suggest where to start bidding, although it is entirely up to the bidders what bid they would like to submit.
Most properties have a reserve price that needs to be reached for the house to be sold. Once this reserve price has been reached, the property is then considered to be “on the market” and is sold to the highest bidder.
Auctions normally require the highest bidder to immediately supply a 10% deposit, with the balance due on settlement. There is also normally no cooling-off period when a property is sold by auction.
If the bidding does not reach the reserve price that you have set, it will then be “passed in”. The highest bidder then has the opportunity to negotiate with you to see if you can come to a mutually agreeable deal. Many times, a property that gets passed in will sell by negotiation on the day or within days after the auction. (Please see our separate post regarding what to do if your house is passed in at auction).
What Not to Do
To ensure a smooth and successful auction, here are some things you should avoid doing:
• Don’t get too emotional about the process or too stressed on the day.
• Don’t interfere with interested buyers.
• Don’t arrange for your friends to bid to get the price up.
• Don’t disclose or talk about your reserve price to anyone.
• Don’t be unrealistic with your reserve price.
• Don’t fold under pressure. Set your boundaries and limits for the lowest offer you’ll accept.
In conclusion, auctions require a significant amount of preparation and effort but can result in a great sale result if done correctly. By following these tips and being aware of your state’s rules and regulations, you can ensure a smooth and successful auction day.
Disclaimer: Although all care is taken. We do not give any warranty whatsoever to the accuracy of any content This is not meant to be financial or professional advice and is only of general nature. You must seek professional advice before taking any actions. The above information comes with no warranties whatsoever. We take no responsibility for any actions you may or may not take. All content is of general nature only and is NOT to be taken as advice whatsoever