| AUCTIONS | | | | buyer could also be "out of pocket' with nothing to |
| BASIC TIPS FOR BUYING OR SELLING PROPERTY | | | | show for it. The property has been sold for more than |
| AT AUCTION | | | | the agent told you it could possibly get and you have |
| Auctions are one of many methods used to buy and | | | | now wasted your money spent on advice and building |
| sell property. It is also the worst method, especially if | | | | inspections. If possible try to converse with the owners |
| you are the seller. Ask yourself the question, "who | | | | prior to auction and compare quotes given to you both |
| really wins at an auction, the buyer, the seller or the | | | | by the agent |
| agent? Once you have done your research you will | | | | A common practice at property auctions is the |
| see it is almost always the real estate agent. | | | | Dummy Bidder. The dummy bidder is placed amongst |
| SELLING AT AUCTION | | | | the crowd and bids like a genuine buyer. This is to |
| Should you sell your property using the auction | | | | drive up the price of the property. Could you imagine |
| method? No, because you very rarelyreceive the price | | | | bidding against a dummy bidder only to find out you |
| you were hoping for or the price the agent has | | | | won the purchase but it cost you thirty thousand |
| promised you. If you decide to sell at auction you will | | | | dollars more than you could actually have paid. |
| be asked 'what is your reserve price?' Your reserve | | | | ESSENTIAL TIPS |
| price is the lowest amount you would be prepared to | | | | There are many tips advising you against buying and |
| take for the sale of your property. Now why would | | | | selling at Auction. For instance, there is the possibility |
| you want your lowest price out there when you are | | | | the auction could only attract spectators and not |
| trying to get the highest price possible? | | | | genuine buyers, the closer the auction gets the agent |
| There is also the possibility that your property may be | | | | will start conditioning you to accept a lower price than |
| 'passed in'. This means your property did not meet the | | | | you wanted and you will also be told how many |
| reserve you set, therefore did not sell. If this is the | | | | houses they have successfully sold by auction, when |
| case, how much has it cost you to not sell your | | | | in reality these houses would have sold anyway even |
| house? The cost of advertising your property and | | | | if not at auction. |
| auctioneers fees can run into thousands. Do not pay | | | | Always investigate other methods of buying and selling |
| your agent any money until your house is sold and you | | | | your property before deciding on the auction method. |
| walk away feeling satisfied your agent has done the | | | | Whether you are a buyer or a seller it is your financial |
| best for you. | | | | future and security at stake here. By not doing your |
| BUYING AT AUCTION | | | | research you could lose thousand of dollars and be |
| All sellers are over-quoted by the agent and all buyers | | | | caused a lot of stress and heartache. Its YOUR hard |
| are under-quoted by the agent. Because of this, the | | | | earned money so make it work for you. |