How does a property auction work? Auctions are a great way to sell your property. But that can be intimidating if you’re not familiar with the process. Understanding how the auction process works for the seller, is essential for peace of mind. In this blog post, we’ll explain the basics of how an auction works. This will help so you can confidently use an auctioneering company to sell your property fast.
What Is a Property Auction?
A property auction is a process of buying a property by offering them up for bid. Also, taking bids, and selling the property to the highest bidder. Auctions are used to sell real estate fast. The convenience of the seller is important. The auctioneer is responsible for running the auction and ensuring that all bids are fair.
Types of Property Auctions
There are several different types of auctions that can be used. The most common types of auctions include:
• Onsite auctions – Onsite auctions allow bidders to be at the premises on the day. They view the property before the auction, and then do the bidding. We recommend this method because people that buys property in South Africa would want to see the property before buying it. This is also convenient for the seller. People don’t view the property before the time, at inconvenient times for the seller.
• Online auctions – Online auctions allow bidders from around the world to participate in real-time bidding over the internet. We can also do online auctions, or combine this and the above method.
How Does Bidding Work?
Bidding starts with an opening amount set by the auctioneer (known as an “opening bid”). Bidders then raise their hands or call out their bids in increments. This is determined by the auctioneer until no one else is willing to bid higher than them. At this point, the highest bidder must pay a percentage as agreed immediately after winning. The seller is allowed to put down a reserve amount, which is not made public. This is just to protect the seller so the auctioneer doesn’t sell the property for any amount. To see more, click here.
What Happens After Winning a Property Auction?
Once you have won an auction, you will need to pay the percentage as agreed immediately. Payment methods vary depending on where you are buying from. Usually, only EFT or credit card payments will be accepted. Once payment has been made and the seller accepts the offer, the percentage deposit paid will become non-refundable. Then the normal transferring process will start.
Conclusion
Auctioning can be both exciting and intimidating but understanding how it works will help you to know what to expect on the day. So now you know how a property auctions work.
For more information go to www.apolloauctions.co.za