ENSURING THE HIGHEST VALUE: At Harcourts Auctions, we are dedicated to ensuring you achieve the highest value possible. Our auction process means potential buyers don't have a list price; all they know is your property is for sale and will be sold on a particular date.
VALUE OVER PRICE: Auctions shift the buyer's focus from price to value. Without knowing the price, potential buyers can focus on what the property itself has to offer. We don't get paid until we sell your property, and we don't sell your property until we reach a figure you like.
YOUR TIMELINE, OUR PROCESS: The auction process allows you to set your own date and a timeline. No waiting around, guessing when your property will sell or not sell.
YOU CALL THE SHOTS: We conduct auctions with a reserve price. We don't believe in underselling, and we believe the sale of your property is your decision. We allow you to accept any offer prior to auction day and let you set a reserve price. In other words, you choose the minimum price. If bidding doesn't reach your minimum, you're under no obligation to sell.
PAPERWORK COMPLETED PRIOR TO AUCTION: An auction sale is always a clean, simple, and non-contingent contract. The buyer must complete all due diligence before auction day. When auction day comes, you know who is bidding and for how much.
ALWAYS IN THE LOOP: When selling your property via traditional means, you are often removed from negotiation and kept in the dark about offers. At auction, you can see everyone interested; they are standing in your yard. No secrets. No surprises. No stress.
LEARN WHAT BUYERS WILL PAY: Sometimes auctions don't result in a sale before auction or on auction day. This doesn't mean your property or the process has failed. Instead, it means you know exactly how much buyers are willing to pay. Your property's reputation remains intact because you haven't advertised your list price. It's a win-win situation. We don't stop working until your property is sold. We're with you every step of the way.
HAVE CONFIDENCE: By taking a property to auction, the seller is putting a date on the sale of the property; therefore, buyers can have complete confidence knowing the seller is committed.
When selling your property, there are quite a few different modes of sale you can opt for. However selling your home through auction has many benefits, such as:
You set the terms and conditions of sale
Target marketing puts a spotlight on your property
Marketing with no price attracts genuine, cash in hand buyers
Auctions create a sense of urgency, bringing buyers to a point of decision
Preparing for an auction
Auctioning your property is about so much more than simply showing up on auction day. There’s a lot that goes into it beforehand to ensure you achieve the best result possible for your property. Marketing your property well is chief among the things we will need to do.
What is your role on auction day?
If possible, the best recommendation is to attend your auction. It’s great to have you there if there are any last minute questions. Your auctioneer will also want to confer with you depending on how the auction is going. If bidding stops below your reserve price for example, your auctioneer will want to discuss next steps with you.
The reserve price
It’s important for you to understand and be clear on what your reserve price is, and how it’s used during the auction.
There are three types of figures to consider before the day:
Your best price – The figure you’d be very happy to accept.
Your ok price – The figure you’d be ok with based on the feedback you’ve received, you don’t see a win but you don’t see a loss.
Your accepted price - This last figure is basically the one you wouldn’t be thrilled with, but given market conditions, you’re prepared to sell at that price.
What type of auction does Harcourts conduct?
Harcourts only conduct live auctions which either take place either at the property or on an off-site location which has been advertised throughout the auction campaign. Our Auctioneer will facilitate and call the auction bidding, just as you would experience at a car or antique auction. We do not conduct auctions via the internet. If a bidder is unable to attend the venue where the auction will take place, we have a number of options available.
What if someone makes an offer prior to auction, can I accept it?
Absolutely, our main objection is to sell your property, should an offer be presented which is an amount and on terms acceptable to you, we are happy and this is our job done. All offers made throughout the campaign prior to auction will be displayed to the seller; however, it remains entirely the seller’s decision whether or not they wish to counter, accept or continue down the auction path towards auction day. A large majority of our properties sell prior to auction, as the seller has had an opportunity to gauge feedback on the marketplace.
How can I be sure that I am getting the best price for my home?
The only genuine measure of value of real estate is what someone else is willing to pay for a property. An appraisal is merely an informed opinion. An appraisal is not an offer to buy. The real measure of value of real estate, at any given time, is what it will bring under competitive bidding from informed and motivated buyers. Selling via auction ensures you are receiving a public offer at fair market price.
If my property doesn’t sell auction day, is it still possible to market it for sale?
Absolutely. The auction marketing method allows us to expose the property to the marketplace. Throughout the auction campaign the seller has the ability to gain feedback about their property from potential buyers. Occasionally, a buyer may be interested in a property; however, may not feel comfortable bidding under auction terms. In this case a buyer will often make an offer after the auction date. Additionally, if the property does not sell auction day, we have the opportunity to price the property competitively.
I heard Real Estate Auctions are only for foreclosure sales and distressed property. Won’t an auction decrease the value of my home?
Certainly not. It is a misconception that auctions are only used to sell bargain and distressed property. Auctions is a predominate method of sale for many luxury products – including Art, Jewelry, Cars and many more. Auctions for real estate in the United States is a relatively new method; however, in other parts of the world it is the preferred way to sell property. Auctions are the preferred way because they have the ability to reveal the true market value of a property through an open forum of competitive and genuine bidding.
A seller is never under any obligation or force to sell their property at any point in the auction process, the decision to sell always remains one for the seller. Should the auction not achieve a price the seller is comfortable with, the seller is able to market the property as per normal with a price. Nothing has been lost and your property has not been damaged in the auction process because the campaign has only consisted of a couple of weeks and no price has been put to the market, so no harm has been done.
I am interested in bidding on the property; however I will not be able to make it to the auction. Can I have someone else bid on my behalf?
Yes, provided all required documentation has been completed prior to auction day. If you are interested in bidding on the property and you are unable to attend the auction for any reason, Harcourts provides a number of different options.
You may authorize a person to convey your bids via a telephone conversation.
This process would involve an authorized a friend or agent to attend and participate in the auction whilst speaking to you on the phone and calling out your requested bids to the auctioneer.
You may authorize a person to bid on your behalf.
Should you not wish to participate via telephone or if you do not have phone reception, you may provide your friend or agent who is attending the auction will full authorization to bid and purchase the property on your behalf.
Please note, should you be unable to attend the auction and wish to utilize any of these options, you must ensure all correct documentation has been finalized prior to auction day and given to Harcourts.
I am attending the auction but I have never bid at auction before and don’t feel comfortable participating, can I have someone else bid and negotiate on my behalf?
Yes, provided all required documentation has been completed prior to the auction commencing. If you will be attending the auction but wish to have someone else call out your bids and negotiate, you have the following option:
You may authorize a person to bid on your behalf.
Should you be able to attend the auction; however, feel uncomfortable displaying your bids or being completely involved in the negotiation process, you may authorize a friend or agent who is attending the auction with you, to call bids out on your behalf.
I love the property! Can I purchase it prior to the Auction?
This will differ depending on the property. All offers made throughout the campaign prior to auction will be displayed to the seller; however, it remains entirely the seller’s decision whether or not they wish to counter, accept or continue down the auction path towards auction day. We encourage you to submit an offer if you are interested as majority of properties sell prior to auction.
Do you have any additional information about the property?
All of the information and disclosures regarding the property being auctioned is included in the Auction Information Packet, which can be obtained by contacting the relevant Listing Agent.
Do I need a real estate agent?
No, using a real estate agent is an entirely a matter of personal preference. If you wish to use an agent, please feel free. However; the auction process is a very simple, transparent way of transferring real property between two parties. Whether you decide to use an agent or not, the Auctioneer of Harcourts, is always available to meet with you face to face or over the phone to explain the process and devise any strategies for bidding on the day of auction. Harcourts is committed to ensuring every buyer and/or buyers agent feels 100% comfortable with the process and ensures the buyer feels he or she has been treated fairly, whether or not they are represented.
I want to bid, what do I need to do?
In order to bid at an Auction you will need to register – this must be done prior to Auction Day. Prior to registering you will need to completely understand the terms and conditions relating to the specific property. Additionally, you will need to arrange the deposit.
I want to buy the property, but I am unable to bid under Auction Terms and Conditions?
Just because you are unable to bid under auction terms and conditions does not mean you are unable to purchase an auction property. Anyone is able to make an offer prior to auction day with any terms; however, note these terms need to be very favorable to the sellers in order to them to consider selling prior to auction day.
If the property does not sell before auction day or on Auction Day you may have another opportunity to submit an offer after auction. In such circumstances however, you risk being involved in a multiple offer situation, as there may be several other buyers who are in the same situation as you and have been holding out until after auction day. Therefore, if you are able to get yourself in a position to make an offer prior to auction or bid comfortably under auction terms and conditions to a specific amount, buying at auction is the most transparent and certain way to purchase property.
I made an offer prior to Auction Day but it wasn’t accepted. Should I still register for the Auction or is it a waste of time?
Yes you should still register for the auction. The Auction process is just that. A process. The process involves many facets including most importantly expectations. The auction process is about educating the price expectations of both sellers and also buyers according to the market. If your offer is not accepted prior to auction, it may be that the seller has a price expectation of the property over where it sits on the market, which may become evident on auction day. Or perhaps it may be that your offer is under estimating the value of the property. Regardless, after the seller and the buyers have had the opportunity to see the full marketing campaign over 3-6 weeks and also see the property’s interest on auction day both parties will often reevaluate their expectations.
What does a “Bidding to Start from Price” mean?
A List price or the bidding to start from price indicates the price at which negotiations must be above. The Bidding to start from price does not necessarily represent an amount the seller would sell the property. The best strategy would be to look at properties in the area, inspect all disclosures and reports completed on the property and make an offer you are comfortable with.
Can I have an inspector review the property?
Certainly, Harcourts recommends you have an inspector review the property; however, this is required to be done prior to auction. All properties involved with Harcourts Auctions are available for preview and inspection. Anyone who wishes to undertake their own inspection, should contact the listing agent to arrange a suitable time.