The main reason for selling by auction is that many sellers have achieved bonus prices for their properties as two or more people battle for their property in an auction room. Many sellers feel that they would not achieve bonus prices such as this in a private treaty sale.
Auctions are a very clean-cut method of sale. Once the gavel falls unconditional binding contracts are exchanged by the seller and purchaser, a deposit is paid and a set completion date is confirmed. The completion date is the day the owners have to vacate the property
What happens if the property does not sell at auction?
The property goes up for sale by private treaty with a quoting price and is handled in the normal manner.
Does the auction result have to appear in the Newspaper?
As auctions are public the results may appear.
What is an auction guide price?
A guide price is merely an indication as to what price level the property is expected to achieve. Unfortunately, in Ireland guides have been completely unreliable, and essentially what has transpired is a situation where agents have been forced into quoting guide prices which, generally speaking are lower than what the reserve prices on the day of auction will be.
The Irish Auctioneers and Valuers Institute and the Institute of Professional Auctioneers and Valuers recommend that agents quote guide prices of approximately 10% below the reserve prices, but all agents do not strictly adhere to this. It is important to bear in mind that not all agents are members of these institutes or any institute.
What is auction reserve price?
This is the minimum level at which a seller is prepared to dispose of their property on the day of an auction.
