Auctions have become an increasingly popular way to buy or sell property, and in particular residential property. However, before deciding to go down that path you should familiarise yourself with the process, and what it involves. To sell through the auction process, the amount you want is generally not revealed to potential buyers who are encouraged to attend the auction, and bid for the property against other potential buyers.

The Reserve Price is the lowest amount you are prepared to accept for your property. Before the auction commences advise your Selling Agent, who will inform YOUR AUCTIONEER, what price you nominate as the Reserve Price. If the highest bid is below the Reserve Price the property will be "passed in". You will then have the opportunity to attempt to negotiate a price with interested bidders or put the property back on the market. If the bidding continues beyond the Reserve Price the property will be sold at the fall of YOUR AUCTIONEER's hammer.

The successful bidder must sign the sale contract, and pay a deposit of 10.00 per cent, unless otherwise agreed, of the sale price immediately after the conclusion of the auction. There is no cooling-off period for anyone who buys a property at auction. Furthermore, if the property is passed-in at auction but contracts are exchanged on the same day, after successful negotiations, the cooling-off period still does not apply.

Further details on the auction process can be obtained from the Bidders Guide.