Richardson and Wrench

11 5.2 Public Auction To sell through a public auction process, the amount you want for the property is usually not revealed to potential buyers who are encouraged to attend the auction and bid against other potential buyers. The auction sale process has become an increasingly popular way to sell a residential property, in particular during times where there is higher demand than supply of listings. Before you decide to list at auction do your homework and assess the current supply and demand factors, current market conditions and familiarise yourself with the process . Setting a Reserve Price The reserve price is the price you are aiming to achieve at the auction. Before bidding commences, advise your agent of your nominated reserve price. The reserve price is not to be disclosed to potential buyers prior to the auction. However, in some circumstances, if you receive a tempting offer from any potential buyer to sell prior to the auction then the price you are aiming for may be used to negotiate. It is always recommended that you consider offers prior to auction, if they are well above what the market is indicating potential buyers will pay for your property at auction. It is best to trust the advice of a professional, experienced local agent. Successful Bids The successful bidder must sign the sales contract and pay you a deposit (usually 10%) on the spot. There is no cooling-off period for anyone who purchases a property at auctions because contracts are exchanged on the day.