An auction is a specific system and set of rules used to buy and sell goods or services by offering them up for bidding. This allows people to bid on things that are then sold off to the highest bidders. The bidders, during the auction, will compete against each other in order to win.
Once an item has been placed up for sale, the auctioneer will usually start at a low price in an attempt to attract a larger number of bidders. From there, the price will increase with every single bid until nobody wants to offer more than the previous bidder. Then, the highest bidder wins the item.
An auction is then considered complete when the vendor has accepted the highest bid, and the buyer has paid for the goods or services and then takes possession of them. When you are able to find a good buyer’s agent in Geelong, the auction process is far easier.
Let’s take a deeper look at property auctions and how they work.
What You Need to Know about the Auction Process
Before an auction begins, potential buyers are usually allowed something known as a ‘preview period’. During this period, you can check out the item or items on sale and examine their condition to decide whether or not they are worth bidding on. Once buyers have finished viewing the items and want to place their bids, they will need to register with the auctioneer.
The registration process will need you to fill out details such as your address, phone number, name, and date of birth. You will also need to provide identification, such as a driver’s license number or a passport. Each bidder then receives a bidder card with a number used to identify all participants.
A bell sound is usually used to mark the beginning of an auction. From there, the auctioneer will give a brief description of the item that is for sale and then begin the bidding process.
Are There Any Downsides to Selling at Auctions?
- If your property passes in, meaning that it doesn’t sell, this could put off any potential buyers and even lower the original value of your home.
- An auction can often be intimidating for people who are worried about pressure. They may not even register to bid.
- If bidding is sluggish, it could result in a far lower sale price.
- If you’re in a hurry to sell, there is no guarantee that an auction will result in a sale.
The Bottom Line
When it comes down to it, auctions deliver a sort of certainty for both the vendor and competition between buyers. However, they are still legal processes that take a lot of skill and experience to navigate. It can be hard to find your way around what you’re doing.
Make sure that you truly do your research to guarantee the best outcome possible. Having the right team on your side can make all the difference.
Sources:
https://www.openagent.com.au/blog/how-a-property-auction-works
https://corporatefinanceinstitute.com/resources/knowledge/finance/auction/
