Apollo Auctions - Myth Busters
Many myths about property auctions, especially private property auctions, aren’t true. We hope this article provides you with more facts and clarity on the subject.
Myth # 1: If you sell a property on auction is a desperate last resort
Private property auctioneers receive instructions from the Seller directly. That is one kind of auction. These auctions are just another way to sell and is not necessarily a distressed sale. Other auctioneers, receiving instructions from banks etc. may be distressed.
Myth # 2: There must be something wrong with the property
Private property auctioneers receive instructions directly from the seller. This type of auction represents just one way to sell property and is not necessarily a distressed sale. In contrast, other auctioneers who receive instructions from banks and similar entities may be dealing with distressed sales.
Myth # 3: If you buy a property on auction, you will be under pressure to go ahead without having viewed it
When you’re interested in a particular property, the auctioneer will invite you to view it before the auction. The auction process remains transparent, and the auctioneer will point out all defects before the auction takes place.
Myth # 4: Sellers must sell on the day, regardless of the best bid
When the property is sold on behalf of the Seller, the Seller sets a reserve price to protect their interests. If the auctioneer receives an offer higher than the reserve price, they can call the property ‘sold.’ If the auctioneer receives a bid below the reserve price, they must seek confirmation from the Seller before proceeding.
Myth # 5: You have to pay in cash at the auction
While some property auctions may require a cash purchase, this isn’t true for all auctions. For residential properties, the buyer must usually pay a percentage of the highest bid (between 5% and 10%) immediately after the auction. The remaining amount can often be financed through a bank.
We hope this article has provided you with more insight and facts about property auctions.