Buying by Auction

Should You Buy By Auction
Buying by auction means that you and other prospective buyers bid against one another to purchase a particular property on offer. Most auctions used to be performed on site at the property for sale, but nowadays many are conducted in an auctioneers room. While conducting auctions in the auctioneers rooms is convenient, often this is not the best method because the buyer cannot see the property they are bidding for.

The advantage of auctions is that a firm price is not set. This means that for the seller, the opportunity for the price to exceed their expectations is there, and for the buyer, the opportunity to buy a property for less than expected is also present. Be aware that there are two ways property is sold:

  1. By private treaty. This is when a price is set and marketed to the public. Many buyers like the fact that a price has been defined and prefer to buy through private treaty.

  2. By auction. This is where a firm price has not been set and it becomes a matter of the seller and the buyer arriving at a price where ...

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