An auction is a competition for the best buyer for your property. Typically, we use ‘blind’ or ‘sealed-bid’ auctions. Some people believe that auctions leave the owner with no voice in the sale. However, there is a fundamental legal difference between a legally-defined auction and the auctions which RE/MAX Alfa conducts. Find out the differences in the article: What is the difference between a true real estate auction and a blind auction?
Property auctions are a fair and transparent way of selling by a set date or when there is a large number of interested parties.
Benefits of the auction for the seller
The seller is assured that his property will be sold to the highest bidder.
The best offer does not automatically mean the highest price, but the overall terms and conditions that the prospective buyer will offer. In addition to the price, also the terms of completion offered, payment terms, requirements for handing over the property, and possibly other offers made by the interested party.
The seller, to whom all offers are submitted for decision, is the sole judge of which offer is the best.
The benefits of an auction for the buyer
For buyers, the auction ensures a level playing field when buying a property in the event of multiple bidders. It is not the fact that a bidder is the first to come to view the property that determines the outcome, but the quality of their bid. In the event of multiple bidders for a property, the prospective purchasers are not pushed to make an immediate decision in competition with other bidders but are invited to submit bids by a set deadline, which gives the bidders sufficient time to make a mature purchase decision.
How does the sale of a property by auction take place?
- We will prepare for you the complete conditions of the competition for your property. You can read the rules for selling your property at auction in the section Rules for selling property at auction
- We will provide a hard-hitting promotion to attract more people to view your property.
- We will let interested buyers submit offers, how much they are willing to buy your property for, and possibly if they have any other conditions.
- You, as the seller, choose the interested buyers and the terms that best suit your needs.
- We will then contact the winner of the auction and complete the transaction. This means that we will work out the terms of financing, collateral, and how the purchase price will be paid into your account, and we will enshrine these terms in the booking contract. Once the three-party reservation contract is concluded, involving you as the seller, the buyer, and our real estate agency, we will help the buyer secure financing from the bank and our lawyer will prepare a draft purchase contract. Once the buyer has secured financing, we will conclude the purchase contract and file it with the Land Registry. Once the title deed is registered in favor of the buyer, the custodian (bank, lawyer, or notary, whichever you prefer) will pay the money into your account and we will also arrange for the physical delivery of the property. This will complete the entire auction sale.
More articles on auctions
Further articles on real estate auctions can be found in the section Property auctions.
I want to know more about real estate auctions
Clients who auctioned properties
We asked the selling clients for whom we organized the auction how satisfied they were with the outcome of the sale. For more references, see references.