Why sell your property at auction?

Anyone who has sold their property in Cyprus through the traditional estate agency route will know how difficult and stressful it can be.

Using Harrison Property Auctioneers Ltd [HPA] to sell a property at auction could be a great way of selling it quickly, efficiently and inexpensively.

Auction sale vs. sale by tradtional estate agent

An intensive marketing campaign to hundreds of potential buyers. The property details will be included on HPA's website and its colour catalogues, giving reach across Cyprus, Israel, Greece and the UK. Competitive bidding in the same room puts upwards pressure on prices. Purchasers will have funding in place,and the deposit is paid on the day of auction. Contracts are signed on the day of auction and completion to take possession occurs within 28 days. Low cost 2.5 per cent plus VAT of sale price.

Most estate agents limit their marketing to the local are only, often only displaying the details in their shop window. A single potential buyer wll dictate the sale price. The purchser still has to raise suffcient funds/deposit after agreeing to buy. There is no guarantee that the sale will get this far, the buyer could pull out totally or attempt to renegotiate prior to completion. Thirty per cent off all agreed sales fall through for various reasons. A fee of up to ten per cent is also required.

Aution properties are sold unconditionally, and not sold 'subject to contract', 'subject to finance' or 'subject to survey'. The successful bidder is legally obliged to complete the sale.

How much will it cost to sell your property at auction?

Harrison Property Auctioneers charges an auction entry fee per property to cover the inspection, marketing and catalogue production.

The charge is dependent on the size of the advertisement taken in the catalogue [min 590 Inc VAT]. In addition, if the property is sold there is a net auction fee of 2.5 per cent plus VAT of its sale value.

What is the reserve value?

The reserve value is set by you and is the minimum figure the auctioneer will sell the property for; as such it is imperative that this figure is NOT disclosed to anyone.

What happens on the day?

The auctioneer offers the lot and takes the bidding up to the highest level possible. The fall of the hammer represents the completion to buy and the successful bidder is obliged to pay a ten per cent deposit and sign a contract of sale before leaving the room. The buyer purchases the property 'as seen' for the price they bid. The successful bidder may not re-negotiate and cannot change any of the terms stipulated. The completion to take possession usually occurs no more than 28 days later, when the balance is payable and accounts are settled, the funds are paid to the seller, less the auction fee.

What happens if the property does not sell on the day?

Because of the intensive marketing, a percentage of properties will sell prior to the auction.

However, if a property fails to meet its reserve in the auction there may well be someone who still wants to buy it but just did not offer enough on the day. Then it is whether the seller wishes to accept a post auction offer that is a lower price than the reserve price. HPA will continue to market properties that did not sell on the day by following up any interested parties, including unsuccessful bidders at the auction.