The complete auction process includes various steps. It starts from the auction appraisal and moves down to the completion of the sale process. Nowadays, property buyers are participating in an auction to buy residential property or commercial property. If you want to sell residential property in the auction, then you must read the following points.
The following tips will help you to attain your goal.
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Auction appraisal
If you have decided to sell your residential property via auction, then you have to decide which auction is perfect for selling your property. Therefore, the whole process starts with deep research.
You should find out the various residential property auctions in your area. Finding the right auction for your property will make sure that your property will be seen by the right kind of property buyers.
After that, you need to have an appraisal for your commercial residential property. It is usually done by the auction you have picked up. This process requires an approved auction valuer who will assess your residential property.
These auction valuer will tell the various benefits of selling your residential property at auction. They will also tell you how much you can expect after selling your house in an auction.
You should leverage this good opportunity and clear your doubts. You can also ask for good advice.
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Signing Agreement
To participate in an auction, you have to sign an agreement. In this agreement, some terms and conditions will be mentioned. After that, you have to show all the required documents and certificates that are mandatory for the house selling process. The auction handle will prepare a draft description of your home and send it to you for approval.
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Appoint A Solicitor
After signing an agreement, you should appoint a solicitor for preparing legal documents. These documents will include title deeps, condition of sale, and other required documents.
They will also tell you some rules that you have to follow to do a successful sale. The solicitor will also help you to hand over the property right to the property buyer or we can say that highest bidder.
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Marketing Your House
If your legal advisor has prepared all the instruction and legal documents, then the auction handler will start your house marketing. They do this marketing to generate the interest of people and encourage more people for bid.
Nowadays, auction handlers also take the help of social media, website and other online platforms for home marketing. They will also keep you in touch.
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Set the Reserve Price
After auction appraisal and hype created by marketing will give you an idea to set the reserve price for your house. The reserve price should be set on the basis of appraisal advice plus the interested buyers after marketing your property.
You should make sure that the reserve price should be reasonable. It should not be very high or very low. The reserve price is the essential price of starting the bidding process.
It is very important to find the optimum reserve price for your house. Keep in mind that you have to pay an auction fee, even if no one bid for your house.
Therefore, you should never set the reserve price very high. But, make sure it should not be less than its actual worth. You set the right prices so that potential buyers start bidding and drive up the sale.
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Final Day Of Auction
When the auction day will arrive, various interested buyers will register themselves for this auction. They will be carrying the Identification proof and legal documents along with them.
All bidders will start bidding on your residential property. This auction will also be participated by those bidders who want to buy commercial property. They will use your house for rent purposes and use it as commercial property. This bid will start from the reserve price set by you.
If someone bid for the highest price, then the selling process will start immediately. The bidder has to pay the initial amount and that is usually 10% of the highest bidding price. After that, the potential buyer will have one month to pay the whole amount to take possession of this property.
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Completion Of Sale
For the completion of the entire process, you have to wait for one month. On the auction day, it was just an exchange of contracts and paying the initial amount. The rest of the work will start after the auction day.
On the auction day, you and solicitor will confirm the final day of the sale completion process. It includes handing over the entire control to the property buyer.
Final words
If you want to sell residential property, then participating in an auction is a good idea. It will help you to get more potential buyers in one place. Also, you will immediately sell your house to the highest bidder. This way you can sell your property quickly and at a good price.
