advertising and any associated costs well prior to this point. • Day of the property auction. You may be present when the auction takes place, but this is not required and the auction firm will provide you with an update of the sale’s outcome once it is complete. According to Quick Move Now, one of the largest cash house buyers, a tactic auctioneers commonly employ is to commence with a bid lower than the reserve price, allowing potential buyers to start a bidding war. As well as bidders who are physically present, the auctioneer can also take commission bids from buyers unable to attend. In these instances, the auctioneer will bid on behalf of the absentee up to their maximum bid. If your property receives a bid above the reserve price, the sale will then become legally binding. If the reserve price has been met and the hammer goes down, the house’s sale is now legally binding. In addition to marketing and listing fees the seller has already paid, the auctioneer will typically take a commission of 2.5% of the sale price. Winning bidders must provide proof that they have cash funds available, or a mortgage in place at the point of auction. If the sale is successful, the purchaser will have to pay a 10% deposit on the day with the remaining 90% payable within 28 days of the auction. Timing varies, but generally the time taken from auction to completion is approximately 28 days. You’ll also need to factor in marketing time in the lead up to the auction. You’ll need enough time to generate interest in the property to maximize your chances of achieving a fair price. All in all, you are probably looking at 2-3 months from the point of deciding to sell at auction to completion.
59
Powered by FlippingBook