Why are Properties always going to Auction?admin
Going once… Going twice… Going three times… make no mistake ladies and gentleman, this is on the market and will be sold, no final offers? SOLD! We know the words well but in actual fact an auction sale is quite different to a normal private treaty sale in that it is a ‘cash’ purchase and you are generally entering an Unconditional Contract once the hammer falls. This is extremely important to understand. It means your finance and any due diligence, including building and pest inspections (if you require them) need to be done prior the auction date. Further than that, a deposit of what is normally around 10% of the auction price is generally payable on the day, or at the least the next day.
Real estate agents love taking a property through an auction process. It creates atmosphere, drama, emotion and it pushes people to commit on the day.
Auctions really come into fashion during a sellers’ market. They play on your senses and emotions and do so within a compact manner. Vendors sit and wait, often inside the house with baited breath hoping that competition amongst bidders will play on their emotions and push up the end price and receive a contract, even better than that, an unconditional contract.
More to come next week…..