Auckland-based auctioneer Robert Tulp.
Selling a home at auction can be both exciting and scary, but it’s a process that is often misunderstood.
That’s according to Auckland-based auctioneer Robert Tulp, who says auctions are one of the simplest processes available to make a sale, including a property.
“Unfortunately, a lot of people are stressed out, avoid it or complicate it due to a lack of knowledge or experience with the auction process,” he says.
Auctions are a quick way to sell a property, and as easy as these few steps:
- Advertise a property for sale, which is usually advertised up to a month before auction day
- Set up a timeframe for owners to deal with hardcore buyers (before moving on to conditional buyers if applicable)
- Buyers are interested in advance and attend the day of the auction to bid on the property which may be on site or in the auction house of the real estate company. Absent bidders use their own agents to represent them using auction apps or over the phone
- Ask a qualified auctioneer to ‘work his magic’ and give all bidders a chance to compete for ownership
- If the auction reaches the owners reserve or the acceptable price (which only the owner, agent and auctioneer know), then the property can be processed unconditionally and the sale is legally binding. Otherwise, the listing agent will simply proceed to the next step in the process.
- Besides the commission and real estate costs and marketing costs, there is also the auctioneer’s fees.
“An auction gives sellers certainty – once it’s sold, it’s sold!” said Robert.
And during periods of restrictions due to Covid-19, properties are still sold through online auctions.
In fact, figures from the Real Estate Institute show the auction is growing in popularity – more than a quarter (26.9%) of properties were auctioned off in June, the highest percentage of auctions for a year. month of June since the records began in September 2005.
“With most areas experiencing a shortage of real estate coupled with low interest rates, the auction process is proving increasingly popular,” says Robert.
An auctioneer in New Zealand and Australia for over 20 years, Robert has many success stories to tell.
He gives the example of an elderly couple: he was 94 years old and his wife 101.
“They were unfamiliar with the auction process and often the process can be seen as ‘too stressful’ for some of their age.
“They trusted the agents and we conducted the auction. They were able to watch the auction through our live streaming service (from the comfort of their new retirement home) with the support of their family members. . “
“We had three active bidders in our auction room and sold the property unconditionally and above their ‘happy’ reserve price.”
This is one of the main advantages of auctions: homeowners can know what a buyer will pay before they tell the market what they are willing to accept.
“In a moving market, as it is now, you go through a process that doesn’t ‘cap’ what the market will pay for a property,” says Robert.
“Valuations tend to be based on past price performance, while savvy buyers will pay future or higher prices and the auction process allows buyers to bid and compete at a level that may be higher than price. previous affected. “
For buyers, auctions are also beneficial – they are on a level playing field, they can bid in a transparent environment, and they will never miss an auction unless they choose to stop bidding.
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