What Happens If My Property Doesn’t Sell At Auction?
Auctions can be an effective way to sell a property, but what happens if your property doesn’t sell at auction? This is a common question that many property owners ask, and it’s important to understand the options available to you in such a situation.
Reserve Price Not Met
The most common reason a property doesn’t sell at auction is that the reserve price, which is the minimum price the seller is willing to accept, is not met. If this happens, the property is ‘passed in’. This means the auctioneer announces that the property is still available for sale.
Negotiations After Auction
If your property is passed in at auction, negotiations often begin immediately with the highest bidder for a post-auction sale. The auctioneer may approach the highest bidder and negotiate on behalf of the seller. If an agreement can’t be reached with the highest bidder, the property is then open to offers from other interested parties.
Buy It Now
If your property doesn’t sell at auction and negotiations don’t result in a sale, you can choose to list your property for ‘buy it now’. This allows you more control over the sale price and terms of the sale, and gives potential buyers more time to consider the purchase.
Re-Listing at a Future Auction
Another option is to re-list the property at a future auction. This might involve adjusting the reserve price or marketing strategy to attract more potential buyers. It’s important to discuss this option with your real estate agent to understand the costs and potential benefits.
Conclusion
While it can be disappointing if your property doesn’t sell at auction, it’s important to remember that there are several options available to you. Whether it’s negotiating with the highest bidder, listing the property for sale as buy it now, or re-listing at a future auction, you can still find a way to sell your property. Always consult with your real estate agent or a property professional to understand the best course of action for your specific situation.
Do you have a property to sell? contact us today for a free auction appraisal.
