Auctioning a property has a number of advantages for
both buyer and seller. The main advantage is that much
of the trauma and delay associated with buying and
selling property is eliminated, as the dates of both the
auction and completion are fixed. Secondly, the
transparency of auction means that a buyer can clearly
see what is happening and can decide whether or not to
bid, with all potential buyers having the same
opportunity to acquire the property. The contract
becomes binding on the fall of the auctioneer's gavel,
with completion taking place normally within 28 days.
From the seller's point of view, if there is likely to
be strong competition between would-be buyers, this
method of sale is an excellent way of achieving a
premium price.
Although the auctioneer acts on behalf of the seller, to
whom he owes duty of care, best advice and
confidentiality, he is also bound to provide accurate
information to the bidders, keeping them informed of any
changes right up to the moment of the auction.
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