The Auctioneer
The auctioneer is there effectively representing the seller, and the auction house that the auctioneer works for will be responsibly for creating the catalogue for the auction; this usually include some details about the property, and a photograph. Often this also includes a guide price, but it is important to make your own mind up about what a property you are interested in is really worth; this is the whole point of an auction: getting a property that you want at what you consider to be a good price.
Often there will be reserve prices in place, and if the highest bid is under the reserve price then it will not be sold (subject to small discretion and leeway if it is very close to the guide price). If a property doesn't sell then you can always consider having a look at it after the auction and then approaching the auctioneer directly after the auction.
Sometimes a property you are interested in won't be on offer on the day of the auction. There are many possible reasons why this could be the case, but one possibility is that the property was sold before the auction (as the agent acting on behalf of the seller the auctioneer may receive offers prior to the auction that the seller can accept prior to the auction).
Most auction experts suggest that one of the most important parts (other than doing thorough research of course before the auction) is to be disciplined enough to set yourself a price ceiling before bidding on a property. With someone else bidding for a property you really want and the adrenaline of the auction, and sometimes persuasive auctioneers, it can be all too easy to go above your budget and end up paying above what a property is worth, and perhaps even above the budget you can easily afford. Therefore be disciplined enough to stop this happening by setting yourself a ceiling and sticking to it.
More property related articles:
- Self Certified Mortgage
- Buying in a Village Might be a Good Investment
- Property Surveyors
- Property Development Mortgages
- Letting Agents
