Selling at Auction
- There are many advantages to selling your property by auction, in particular:
- You get three chances to sell: before auction, on the day or in the event the property is passed in, soon after auction.
- You can set the reserve price and settlement date to suit your circumstances.
- The reserve price gives you a chance to test the market.
- A written marketing plan with set appointment times enables you to manage your life during the marketing.
- The auction process creates a sense of urgency and a competitive environment.
- All contracts are unconditional and no cooling-off period applies.
The first step in selecting the right auctioneer is to choose someone with a proven track record and knowledge of the particular area. Jeff Wright is a Licensed Auctioneer with a proven record in the Perth coastal region. Jeff is one of Perth's leading and respected Auctioneers.
Wright Real Estate is experienced in planning and arranging the marketing of your property. The extent of the marketing campaign will depend on the budget and campaign objectives.
You have the right to set a reserve price, below which the auctioneer is not permitted to sell. We will be able to guide and assist you with setting the correct reserve price as we are familiar with the recent sales of similar property in the area. Remember to be realistic when setting the reserve price, bearing in mind supply and demand in the area as well as other general market considerations.
Sale Before Auction
It is not uncommon for interested buyers to make offers on properties prior to the auction day. In such cases, we will discuss the offer with you and a decision is made to either consider the offer, or continue with the auction as planned.
In the event you wish to sell your property prior to auction, we will, on your instruction, invite all potential buyers to also make an offer. The most appropriate offer is than negotiated by the seller, and contracts are signed prior to the auction date.
We specialise in building higher buyer interest levels through multiple offers. This requires the ‘Wright’ training to produce fantastic results and has quickly become our trademark in the industry. Many agents have little understanding of the negotiation of ‘multiple offers’. Wright Real Estate has been a leader in promoting this excellent seller benefit.
There are several possible outcomes at the auction:
- If the highest bidder reaches or excides the reserve price, the property is sold and the auctioneer will conclude a binding contract between the buyer and seller. The Auctioneer may sign the contract on behalf of either or both parties, if instructed to do so.
- if the highest bid has not reached the reserve price, the Auctioneer will usually ask for the seller’s instruction before passing the property in. This means that the seller has the opportunity to accept the last bid, by placing the property “on the market”, so that it may definitely be sold “under the hammer”. This factor often encourages further bidding and a better price.
- If the highest bid does not reach the reserve price and the property is passed in, the highest bidder is generally informed of the reserve price and may be given the initial opportunity to purchase. Failing this, the property is placed on the market for sale by private treaty, at which time anyone may negotiate with the agent.
Some Tips for a Successful Auction
Work out the appropriate advertising budget to ensure your property is widely promoted. Make sure the property is well presented because a potential buyer’s first impressions are crucial to a successful sale. It is important that the contract and the accompanying statutory searches be available well in advance of your market campaign. Speak to us about this. Allow the agent to arrange as many inspections with prospective buyers as possible. Confidentiality is important. We suggest you do not disclose or discuss your reserve price with anyone except your Agent/Auctioneer