Property auction is taking place for more than 160 years. It not only benefits the seller but to the buyer also because it is simple, open and efficient method of purchase. In England and Wales around 2.5% of properties are sold through auction. Speed If a person wants to sell the house quickly, property auction is considered best. The timeframe is much shorter compared to real estate agent. Price In property auction the seller may get a much better price through competitive bidding. The bidders may increase the price of the property. Integrity Through this method the final price will be decided and there would be no chance of negotiation. Marketing exposure The property will be marketed in local and national newspaper. With the help of internet the interested buyers will know about it. Chance of success The property auction zone is able to sell about 90% of the lots offered. If the seller wants a particular sale value then he should go to the auctioneer. Competitive bidding Competitive bidding is done so that the prospective buyers can bid against each other. Through competitive bidding, the seller can get the best price. No fall-through Once the hammer has been hit the buyer is legally bound to buy the property and cannot change his mind. No re-negotiation Re-negotiation cannot be done once the property has been sold. The buyer should have seen the property before taking part in the auction. Continuing tenancy income In investment properties, the vendor will be receiving rent till the auction date and after that the purchaser will be receiving income. Open house viewing days The auction team sets a day when the prospective buyers can have a look at the property and their questions can be answered. The auction team will know who are the prospective buyers and it will be helpful in setting up a reserve price. If this process is followed then the property can be sold very quickly; first the auctioneer is called who will help the seller in knowing the process of selling. The auctioneer will tell him about the necessary paper work that is needed, like the tenancy rights, architectural plans etc. Then the auctioneer will make a marketing material and show it to the seller so that he can approve it. The material can be viewed on the website or in local newspapers and national newspapers. The open days are kept when the prospective buyers can come and have a look and ask any queries related to that property. On the auction day the time is allocated for the event to take place. The bidding takes place between prospective buyers and who does the highest bidding; the property would be sold to him. The sale document is signed and a 10% amount is deposited. The selling process is completed. In today’s world, online auction is the easiest method. The prospective buyers do not have to visit places; they can know where the auction is taking place through internet.
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