Auction

An auction is a sale method involving potential buyers bidding on properties in real-time, with the highest bidder winning the sale.

What is an auction?

An auction is a sale method involving potential buyers bidding on properties in real-time, with the highest bidder winning the sale. It gives bidders an exact figure to beat in order to become the new owner of the property. 

What are the rules of property auctions? 

Property auctions typically follow certain rules and procedures to ensure a fair and transparent process. Here are some common rules below: 

  • Reserve price: the property may have a reserve price, which is the minimum amount the seller is willing to accept. If bidding does not reach this level, the property may not be sold.
  • Bidding increments: auctioneers set specific bidding increments, dictating how much each bid should increase.
  • Registration: bidders often need to register before participating in an auction.
  • Deposit: Winning bidders may be required to pay a deposit immediately or within a specified time frame after the auction.
  • Committing to your bid: if you emerge as the highest bidder you are obligated to proceed with the purchase. Failure to do so can result in legal action.

How much does it cost to hold an auction? 

The main cost associated with holding an auction will be the fee paid to the auctioneer. This cost can range anywhere from $400 to $1000, depending on the auctioneer used for the job.

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