Real estate can be fun and exciting. It has become one of the most popular methods of selling or buying any real estate property. 

For first-timers, selling or buying at a real estate auction can be fun and exciting, but for many, it can be nerve-wracking. 

Regardless, there are many advantages when acquiring properties through auctions, especially when you know the ins and outs of it.

How sellers can benefit

Sellers can benefit from great opportunities in the market with a greater chance of a quick turnover, along with other advantages that make auctions more popular in the real estate industry such as;

* Selling at the market without a fixed price gives buyers who have available and extra money to spare to consider and assess your property.

* Buyers auctions always set their expectations to bid on a maximum price rather than a low amount to negotiate for a sale price.

* Allows buyers to determine and assess the value of the property rather than on a valuer or sales consultant, which could result in a buyer agreeing on a lower sale price or too high that it stays longer in the market until it takes the fancy of some buyers.

* It attracts buyers with cash and is ready to make a deal within the day without the need to impose conditions with the seller against a conditional contract that can cause a buyer to withdraw from a sale.

* Conditional buyers can join an auction and when a seller does not get a suitable bid, the seller will have a window to negotiate with conditional buyers at the end of the auction activity.

Expectations for sellers

To make the most out of auctions, sellers may engage a real estate agent or sales consultant to provide them with guidance through the pre-auction and actual process such as;

* Provide sellers with information regarding the current market statistics, specifically around the property area and similar properties that are being considered.

* Helps take sellers through the various aspects of the marketing plan such as securing the necessary images and all relevant advertising content materials.

* Helps sellers schedule open homes and inspections.

* Keeps sellers informed of updates, meetings, and negotiations with potential buyers.

* Provides sellers with detailed marketing campaign reports and buying plans of potential buyers.

* Helps educate and set a realistic reserve and sale price for the property.

Always remember that sellers and owners of the property have the final say and should the bid price do not meet the expected reserve they can always decide to negotiate with the buyers.

Planning to buy at an auction

Auctions are not just good for sellers, but it is equally beneficial for buyers as well. For instance, buyers get to know their competition and can use negotiations as leverage to agree with the seller.

As a buyer, a successful bid for a property immediately initiates the signing of a contract and the property changes hands without too many complications and technicalities.

For buyers to make the most out of the auction process, it is critical to observe due diligence and do research. 

Below are some practical but critical tips to help buyers plan for an auction;

* Ensure that finances are in order before the auction day, so buyers are better prepared for how much they can bid for their maximum amount. If they make a successful bid, both parties can immediately sign the contract or sales agreement or make the required deposit which is usually set at 10% of the sale price.

* Buyers must arrange for a property or building inspection of the desired property to bid on, as well as having a solicitor review the property titles and evaluate legal matters about the planned bid.

* Review the documents, processes, and regulations before bidding so buyers can avoid missing out on restrictions and guidelines relevant to the auction process.

* Buyers need to research the local market to ensure having an accurate assessment of the property’s market value. Engaging an independent property valuator can be an option if a buyer does not have enough time to do it.

* Attending and observing a few auctions before the big day can be helpful for buyers especially when they want to get a feel of the auction processes. 

As a seller or buyer, it is important to take time to research, observe due diligence, and prepare for auctions, it makes them feel more confident and assured of their prospects, strategies, and benefits on auction day.