Property auctions are sales conducted by an auctioneer, usually a real estate agent, in a public place open for attendance by any interested buyers. Sometimes the auction is conducted at the property for sale and sometime in auction rooms.
The auction is advertised for a specific place, time and date. Anyone interested in bidding must register with the selling agent as a bidder and usually gets a copy of the contract and all associated paperwork, including the auction rules.
The Vendor’s agent will conduct an advertising campaign with open house inspections for several weeks leading up to the auction. In the lead-up, the agent may contact you to gauge your level of interest. On the day of the auction, the property may be open for inspection before the bidding starts so that you can have a final look at it.
When the auctioneer calls the property for sale he usually describes the property and the significant contract terms including the required deposit and any special conditions.
The vendor will have given the vendor his bottom price, called the ’reserve price’, but the auctioneer doesn’t disclose this.
Once bidding starts, and if the property bids reach the reserve price, the auctioneer will declare the property to be on the market for sale. If further bids continue, then the property is sold to the highest bidder.
We at First National Browns Plains are expert in all aspects of real estate, especially auctions.