What is auction?

An auction is a unique method for transacting, when buying or selling items. It's effectives, quick and dependable. An item that is to be sold is launched at a low price, and others will offer sums of money for it. The offers progressively get larger, and the person who offers (bids) the highest amount, when others decide to stop bidding, will get it at the price that was bidded upon.

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Who is Auctioneers?

Auctioneers, like other real estate brokers, charge a commission as a percentage of the sale price. The commission is negotiable. . In addition, the out-of-pocket expenses relating to the marketing and promotion as well as the conduct of the auction are paid by the seller.

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What is the qualification and for a bidder?

1. You will need to be above 18 years of age to register and become eligible to bid at an auction. 
2. Complete and return to the auctioneer the Auction Registration Form together with a cashier's Order or Bank Draft equivalent to 10% or 25% of the reserve price of the property that you intend to bid, prior to the Auction Sale.
3. In the interest of all parties concerned, the Cashier's Order or Bank Draft shall be made payable in accordance with the Terms and Conditions of Sale.

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What are the benefits of real estate auctions?

The Real Estate Auction is definitely a Double win situation for everyone involved. The seller disposes of properties quickly and efficiently, thereby saving long term holding costs such as interest and maintenance. For the buyer this can mean a smart investment, since properties are usually purchased at fair market value through competitive bidding, because the auction sale is conducted in an open forum, both motivated buyers and sellers have assurance of watching the property's true market value emerge as the bidding process progresses. For buyer and seller, fair market value for the property prevails. 

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What type of property can I put into auctions case?

Basically most of the property are suitable, but certainly not all, are saleable by auction. Residential property (including single and double story houses, bungalow, town house, country homes and condominiums), commercial property, vacant land can be sold at auctions. The majority of sound developments that can be marketed effectively do extremely well at an auction.

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I heard someone say real estate auctions will depress my property value, is it real?

Absolutely wrong on the statement. Real estates auctions only reveal the true market value of the property because because auctions are conducted in an open forum where all bids are known, and participants are given immediate feedback on the property value. At an auction, the open market value settles at the level the market can bear, neither elevated nor deflated.

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How can I ensure that the auction case will be success?

• The desirability of the property being sold including the location, condition and surrounding properties.
• An aggressive marketing and advertising plan which is realistically expect on the part of the seller.
• Conducting the auction in a professional manner. Undertaking due diligence beforehand so buyers are knowledgeable. The only issue that remains is price.

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What terms does a property sell at auction? Who sets the terms?

Normally the terms are sets by the sellers through the advisory services by a auctions company. Usually this terms are pressing on the successful bidder deposits earnest money (either a percentage of the purchase price or a stated set amount) and enters into a purchase contract immediately following the auction. The balance of the purchase price shall be paid within 90 days from the date of Auction Sale. Properties are generally sold on an "as is where is" basis with no warranties expressed or implied.

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What happens to Ernest money if a buyer decides at a later date not to buy the property?

The earnest money deposit is forfeited if the highest bidder is unable to complete the sale regardless of the reasons. If the seller fails to close because of defective title, etc. the buyer's deposit will be fully refunded immediately.

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