OzFree Online Real Estate

In Australia, real estate auction is one of the most popular ways to sell your real estate property. It is often thought of as the fastest and most successful way to sell property. It doesn’t work the same way as a private treaty sale. A real estate auction requires an auctioneer and marketing of the property for the auction period.

Here are some real estate auction terms you need to know:

Auctioneer – This is the party that will facilitate the auction of your real estate. You need to choose someone with a proven track record of auctions and general knowledge of the area. The auctioneer must also be licensed in the State or Territory where your property is located.

Agency Auction Agreement – this is the document that sets the reserve price of your real estate property, the commissions you need to pay and rights of the agent (ie exclusivity).

Reserve Price – The minimum price at which the auctioneer can is permitted to sell your property. You must consider the supply and demand in the area as well as general market conditions when setting you reserve price. Your reserve price should only be discussed with your auctioneer.

On top of these real estate auction terms, you also need to know that for auctions to be successful, it requires advertising. The auctioneer you choose must have previous experience in planning an auction marketing campaign. He or she must let you know where your money will be spent. Setting the appropriate advertising budget for a real estate auction ensures that your property is well represented.