Sense
of Urgency
The pre-arranged date for auction creates a sense of urgency
and buyers recognise the necessity to arrange all purchase
matters well in advance given that the successful bidder will
be required to pay an immediate 10% deposit and be able to
settle in 30 days.
True Market Value
The property is offered without a price. Provided an effective pre–auction
marketing program has been carried out to attract prospective purchasers,
an open and competitive bidding environment will establish the most
accurate and current value.
Certainty
The auction process eliminates the time and stress often associated
with drawn out negotiation processes typically encountered with other
methods of sales. Unless the vendor has agreed to vary conditions
of sale prior to the auction, the property is unconditionally sold
at the fall of the hammer.
Early Settlement
Typically, sales are settled in full within 30 days of the auction.
Price Protection
As the seller, you control the reserve price that will be the minimum
price you will accept for the property. The auctioneer cannot complete
the sale until the pre-established reserve has been reached therefore,
the vendor can be confident the property cannot be sold at a price
below that which is acceptable to the seller.
Flexibility
During the time leading up to the
auction, variations to the conditions of sale and /or
settlement may be granted by the vendor. These may be as a
result of comment arising from interested buyers and such
variations may increase competition for the property. In the
event the highest bid does not reach the seller’s reserve
price, the property is “passed in” by the auctioneer however
negotiations to purchase may continue with the highest bidder
following the
auction. |
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