the traditional open market. • Individuals who have inherited an unusual or rundown property who would struggle to sell on the open market may sell through auction. Auction houses attract many buyers looking for their next project, so chances of achieving a successful sale increase. • Multiple buyers in one room can create a “bidding war” and rapidly drive up the sale price.
STEPS INVOLVED IN AUCTIONING A HOUSE
• Select an auction firm. There may be several in your area. Research each carefully to decide who you’d like to have auction your property. Study their brochures, online presence and reputation (i.e., look for online references or reviews), and websites. Ask how their auctions are advertised to buyers to assess who you feel would do the best job attracting potential buyers for your property. • Obtain property appraisals. Request appraisals from a few different auctioneers. Do this while you are researching auction houses. Each auction house should provide what they deem to be a good reserve price and details of what fees are payable. • Instruct your chosen auction firm. Once you have chosen your preferred auctioneer, you will need to officially instruct the company to sell your property and sign any relevant contracts (this is similar to instructing an estate agent to sell a house). At this point, you will be expected to pay admin and marketing fees. • Consult your real estate attorney. You will need to engage a lawyer to assemble the legal documents for the property
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