The Auction Process

  • Stage One - Pre-Auction

    The pre-auction period is the three to four weeks prior to the auction, when sales consultants are sourcing buyers to qualify and prepare to bid at the auction. High profile auction marketing will highlight the property, producing the greatest exposure during the period when enquiries are likely to be at the highest level.

    During this stage the consultant gathers market feedback to help the seller set an educated reserve price. The seller can agree at the outset to accept offers prior to the auction and may choose to sell during this stage.

  • Stage Two - The Day of the Auction

    The auctioneer and consultant will establish the opening bid level - crucial to create active bidding. The auctioneer also declares publicly that he/she reserves the right to bid on behalf of the seller which is simply negotiating on the seller's behalf. The auctioneer will not sell the property below the reserve price set by the seller, but will use his specialised skills to build bidding momentum and emotional competition between buyers to encourage a desire to win, and ultimately the best price possible for the seller, sold under the hammer.

    If the property is passed in, the auctioneer will approach the highest bidder to offer them first option to accept the seller's reserve. Often the final bid and the seller's reserve are not that far apart and a sale is negotiated successfully. The auction conditions of contract still apply - cash sale with 10% deposit paid on the auction day with a 30 day settlement.

  • After the Day

    Some people believe that if the property does not sell on the auction day then the auction system has failed. This is not true. After the auction there is opportunity to negotiate with those who may need to sell another property or arrange finance before they can commit themselves unconditionally. The previous three to four weeks of market research provides the sellers with the confidence and ability to set a fair market value price on their property. Any contract, after the Auction, is drawn up on an "Agreement for Sale and Purchase of Real Estate". It is no longer deemed as sold by Auction if an agreement is entered into one business day after the Auction.