If you are considering selling your house at auction, you may have a few questions if you haven’t sold property in this way before. Going to your first auction can be a little bit confusing if you are unprepared. Here are some of the questions that are commonly asked by sellers who are unfamiliar with the auction process.

Q1. Is selling my property at auction the best option?

Auctions have the benefit of being able to create a sense of urgency, which can help drive up the sale price. How well a property peforms at auction depends on the property market at that time; in particular the number of comparable properties listed and the number of active buyers. Currently the demand for houses is greater than the number for sale, which makes selling by auction an option worth considering. 

Read more: 9 good reasons to sell your house at auction

Q2. Am I able to sell my property before the auction begins?

Yes, you will be able to do this, but make sure that your agent advertises that you will be considering offers prior to the auction. 

Q3. Can I use more than one agent when selling by auction?

No, if you are planning on selling your house at auction, then you can only use a single agent. You will need to sign an agreement with that particular agent and work on a marketing plan together. Using multiple agents will violate any agent agreement you have signed.

Q4. How does the auction work?

Your property will be sold to the highest bidder only when the bidding goes beyond the reserve price. This is the end of the negotiation and the sale will be considered complete. This is why it is so important to make sure that you determine your reserve price correctly. Don’t set the reserve price too high, so that the bidding doesn’t come near it. If the bidding doesn’t reach the specified reserve price, your auctioneer will then pause the auction and your agent will then consult you about what you would like to do.

Q5. What happens if the reserve price is not met? 

If this happens, you have a few options:

• You can choose to put the property on the market, which means that you no longer have a reserve price and you accept the highest bid when the auctioneer starts up the auction again. You may have to accept a low bid, but this approach might bring you an immediate sale.
  
  
• You can let the auctioneer know that you want the property to be passed on. This will mean that the auctioneer will inform bidders that the auction is over because the reserve price has not yet been reached. At this point your auctioneer may make one last attempt to generate bids before they officially close the option.
  
  
• You can choose to negotiate with whomever has made the highest bid. You can continue the negotiations through your agent after the auction closes. However, you may want to consider the fact that their offer may not be unconditional. Also, you are not under any obligation to accept any offer that is made after the auction is closed. If, via this avenue, you are not able to negotiate a price that works for you, you can always return to the other options for selling your property.

These are just a few of the questions that many people ask when they sell property at auction for the first time. If you are thinking of selling, then download our handy guide to help prepare your home for sale.