Why Auction Your Property Part 1

Yes this is a very good question.....

I have decided to answer this question over a series. I'm goingto breack it down into sections and go through all the advantages of auctioning your property.

So here we go.

The biggest and most important reason to auction your property is this.

Seller Does Not Pay Commission

You're probably going yea right......
Well it is true. But I'll back to that in a minute.

When selling your property you have to make some very important decisions. Decissions like, "do I sell the property privately" or "which estate agency do I use".

For those who choose to sell their property own their own is for one reason most of the time. They don't want to pay commission. I totally agree. Who wants to give away money that can very easily be yours.

Well there is an alternitive.

When you sell your property at auction you do not pay the commission. The commission is paid by the purchaser. It is as simple as that. But please not that the property has to sell under auction conditions. Meaning, The property has to be included in on the day of the auction and Purchasers have to have a chance to bid on the property.

Now there is an alternative to this. Some auction houses such as Dales Bros Allow for what is called pre-auction offers and post auction offers.

Pre-auction offers is an offer to purchase submitted before the auction. There are certain rules that apply to this though. Rules such as the offer will be a private treaty offer to purchase (I'll explain this at a later stage). The purchaser has to have their finances ready. The sale has to be concluded before the auction and there are no suspensive conditions allowed. (I'll explain suspensive condition at a later stage). The most imprtant thing is that the seller will then pay the commission. But Dales Bros works differently with the commission situation. What they do is ensure the offer that is submitted is a strong offer. What I mean by this is that the offer has to cover the commission for the seller. By doing this, in theory, The purchaser is paying the commission.

Post auction offers really work in the same way as a re-auction offer. So I won't bore you with the same story twice.

Well that is it for now. I hope this has helped you to understand property auction a bit better.

As usual, if you have any questions or concerns please drop me a comment and i will get back to you soon.

See you tomorrow for Part 2

Regards

Mornay