Real Estate Auctioneers

A real estate auctioneer does have an interesting role.

As the auctioneer he or she has to control an environment where there can be a lot of pressure on both the seller and the buyers.

Real estate auctions have been compared to a circus event so that would make the real estate auctioneer comparable to a ring master.

If you are selling by auction you will probably find that the real estate auctioneer will be a different person to your real estate agent you employ.

Most real estate agencies have a specific employee or it could be a independent consultant who conducts the business's auctions.

Your real estate agent will handle buyer inquires for your property but in most instances the auctioneer will be a different person.

Conducting an auction is a specialized area of training some agents train to be auctioneers but most don't.

So expect that the auctioneer will be different person to your agent.

If this is not the case and the real estate agent is also the auctioneer, this will be explained to you.

This is a good question to ask when you are first interviewing the agents and comparing their services to ask about who conducts the agencies auctions.

How to find a good real estate auctioneer.

A common sense approach if you are considering finding a real estate auctioneer maybe to attend a couple of local auctions and compare the different auctioneers styles.

Find the Best Real Estate Agent to Use if You Are Considering Selling By Real Estate Auction

When talking to your real estate agent about the auctioneer they are recommending ask about some of the recent sales that the auctioneer has conducted.

Then it may be beneficial to talk to the other consumers who have just sold with this auctioneer.

Ask about the auctioneers experience, particularly in selling properties in your area that maybe comparable to your own property.

The advantage of attending other auctions and viewing the auctioneer in action is this will be better prepare yourself for your own sale.

Ask the agent to give information about the auctioneers strong points and particular skills.

View some recent marketing campaigns and sample advertisements run by the real estate agent and ask about results that were achieved by the auctioneer.

Buyers and the real estate auctioneer

When you attend a auction if you want to bid you will have to register your interest with the agency conducting the sale.

Before the auction starts the auctioneer will read out the general conditions of sale as set out in the Auction Particulars and Conditions of Sale of Freehold Property.

If you have any questions about the property that you have not yet resolved, you should ask them before the auction commences.

In a sale by private treaty, you can write special conditions into your offer to protect yourself these special conditions may include repairs to the property, building inspections or termite inspections.

However, in an auction you will not have this option, ie you cannot make your offer subject to any conditions and pre-finance approval.

If you have decided you wish to bid at an auction, it is recommended that you have pre-finance approval and have developed a good understanding of what the property is worth.

Auction sales are generally not subject to finance. You will also need the amount of the deposit (usually 10 per cent of the purchase price) as this is paid at the close of the auction when the offer and acceptance is executed.

The primary duty of the real estate agent and the auctioneer is to look after the seller’s interests.

It is therefore wise to ask the real estate agent questions about the property, inspect the property carefully, and do your own checks on the property through the local council and other relevant authorities prior to attending the auction.

Special rules apply to strata title lots such as units and duplexes, and may require additional ongoing costs.

Bidding with a real estate auctioneer

It is important to have formed your own view about the value of the property.

You will not be able to rely on the actions of other bidders to give you an idea of the property’s value because some people may be bidding for the seller. The sellers may make their own bids up to the reserve price.

The seller’s real estate agent, the auctioneer or other people may also make bids on behalf of the seller up to the reserve price.

It is recommended that you check if the seller intends to bid by reading the Auction Particulars and Conditions of Sale of Freehold Property contract prior to the auction.

The seller is required by law to show in the contract if they intend to bid and how many bids will be made. The seller often reserves the bid.

There are now some properties being sold online through real auctions.

Essentially the web sites that are offering the service of a real estate auction are trying to create a system where people can participate in a real estate auction from there own personal computer.

Read more with a guide to online real estate auctions here...