The internet is home to millions of articles explaining 5 things to do or 10 things to do for buying property at auctions. In simple words, every article is talking about things to do for purchasing residence at house auctions. There is hardly any article talking about the things sellers should keep in mind during or before selling properties at auctions. This limited approach of agents is making auction events like a one-way road.
Everything for Sellers to Keep In Mind Prior to Selling Residences at Property Auctions:
This is what we are going to discuss in today’s article. Every coin has a flip-side. Without a doubt, auctions are definitely a platform for investors to buy residential properties. But if you look at the other side of house auctions, sellers, or estate agents get a chance to sell properties for making money. But there are certain things they have to learn about. Let’s talk about them below:
Auctions Help Sellers to Sell Properties at Actual Market Price:
Given below are the three big reasons of it:
• All buyers get an equal opportunity to buy residential investment properties for sale.
• Every buyer is given an equal treatment.
• Buyers place their bids in fiercely competitive environment.
What makes auction houses more profitable for sellers is the fact that if buyers keep chipping with their bids, auction continues indefinitely. The winning bid reflecting the highest price is shown only when everyone stops bidding and the clock expires.
The price of the winning bid is what the market will bear and the maximum amount of money that a buyer can pay. Most importantly, property auctions allow sellers to set the reserve price. This is why sellers don’t have to be content with the price they do not want to sell their properties at.
Only Eligible Bidders Bid on Auction Day:
Many auction platforms ask bidders to show proof of funds and fulfill rest of the eligibility criteria to be eligible for bidding at the auctions.
Financial Institutions or Lender Finance Investments:
Even financial institutes and lenders prefer financing investment properties for sale at auctions. As for reason, they have all your income proof, proof of funds, and other important documents already in their hands to secure the money they are lending you to finance your investment.
Transparency and Level Playing Field:
This is another thing sellers should know about prior to visiting auction rooms for selling their investment properties for sale. Meaning, no-secret handshakes and no backdoor deals etc. Auction houses disclose every single Term & Condition upfront to all buyers and sellers. This helps both buyers and sellers feel that they are on the same page and they are not overpaying for anything. Nothing is being hidden from them.
Hopefully, this article helped a seller like you to learn something useful prior to visiting the auction room for selling their properties.