Why auction?
Take command: The seller takes control of the calendar, they choose their timeline by selecting the date by which they want their property (lot) to sell, and they decide the terms of the sale, whether to offer Instant Sale in advance of the Auction Period and whether the lot is auctioned “With a Reserve Price” or “Without a Reserve Price”.
Speed & liquidity: The entire process, from instruction to completion and exchange of contracts, can be concluded within as little as ten weeks, 2 weeks preparation, 4 weeks marketing and auction period, 4 weeks close. Typically, our clients receive full and final settlement of funds within 20 working days of the close of the sale, that’s within the ten week “Start to Finish” timeline.
Transparency: A property auction sale is totally transparent and provides the seller with the assurance that the best possible deal has been achieved in fair and open competition.
Move on: It is often claimed that the three most stressful events we confront in life are bereavement, divorce and selling a property. At AuctionsGlobal we eliminate the stress relating to selling a property. We enable sellers to get their lives back and focus on what’s important to them, whatever that might be…
Certainty: Selling a property at auction offers the seller an exceptional degree of certainty. A binding legal contract is formed on the fall of the hammer. The buyer is committed, and no further negotiation is allowed. Less than 1% of sales agreed at auction fail to complete.
Best price: When presented and marketed professionally a property auction generates a significant number of bidders. The auction bidding process is competitive and will help the seller achieve the best possible price on the day, frequently surpassing the seller’s price expectations.
Why AuctionsGlobal?
We are unique: We are the only licensed auction house in Dubai focused on the traditional real estate marketplace.
A huge network of buyers: We have a vast database of serious buyers who are all looking for properties.
Maximise your chances of success: We are linked to 7000+ licensed real estate brokers in Dubai, each and every one of whom can earn commission via us for introducing the buyer of your property to us.
Our great friendly and professional team: We appreciate that this may be your auction debut, so we are here to assist you every step of the way.
Pre-Approved Buyers: All buyers are required to place a significant deposit with us prior to being given permission to bid for your specific lot, this ensures that only those with genuine intent participate.
Is my property suitable for sale by auction?
People sell by auction for a whole variety of reasons. Can you answer yes to any of the following questions? If so, then an auction sale may be just what you need:
Speed: You may be relocating or completing a divorce settlement; you may have found the new house of your dreams and do not want to risk losing it to another buyer. Your house may have been on the market for a while but now your circumstances have changed. Whatever your need for speed, we can help you sell in just a few weeks.
Unusual or unique: Is your property desirable or exclusive? You can take advantage of its special qualities by letting bidders compete over it. When two or more bidders independently determine to acquire your property, they can drive up the price.
No chain: Auction sales are chain-free as our buyers must have their finance in place before bidding.
Inheritance: Dealing with a property sale under these circumstances, most probably from a distance, with family disagreements thrown in for good measure is the last thing you need. Selling by auction removes the stress and headache.
Renovation project: No need to delay the sale or incur the costs associated with upgrading the property, many of our buyers are looking for “project” properties just like yours.
Just not selling: Has your property been for sale for a considerable period of time with little interest or no offers? Have you been thinking about switching agents, reducing the price or withdrawing from the market entirely; before you do any of these have a talk with your agent and with us here at AuctionsGlobal about the benefits and certainty of a sale by auction.
Sale fall through: It may feel like it now, but it is not the end of the world. We can have your property up on our website in double quick time. And you will not be in danger of suffering the same disappointment again as the risk of a sale falling through after a sale at auction is less than 1%.
Getting started
Intrigued, interested and want to find out more? Your first step to a successful auction sale is to get in touch with our team. We will have a conversation about your property and your individual circumstances, and help you determine if a sale by auction is right for you.
Pricing, in consultation with you and your broker, we will consider and decide on different pricing strategies for your property – we will look at the reserve price and the guide price.
The reserve price, this is the minimum price that you are willing to accept for your property. It protects you from having to sell for less than you are happy with. If the reserve is not met, the property does not sell. Rather we will continue to market the property as “Available for Offers” after the auction.
The guide price, this is the price we advertise and is just what it says it is; a guide. It gives bidders a realistic idea of how much you are willing to sell for. Don’t be surprised if the advertised guide price value of your lot is lower than the price advertised via a traditional brokerage. The price in both types of sale is just a starting point. On the open market, potential buyers will usually try to negotiate the price down, while in an auction, we aim to drive the price up. We advise against setting a guide price too high as experience tells us this can put people off. The most successful properties have a guide price which generates interest and triggers competitive bidding. An attractive guide price can result in a higher sale price.
Selling options
Instant sale, pre-auction throughout the marketing period it is the price that the seller is willing to accept for the lot today. Should such an offer be received which at least matches this figure then the auction will be cancelled immediately. The sales and purchase agreement will be populated, signed and distributed to all participating parties. The brokers will work towards completion as per the terms stipulated in the conditions of sale. You do not have to set an instants sale price, but if you do, it will be displayed on your lot’s unique lot page on the website.
The auction period, our secure online marketplace allows authorised buyers to participate in our auctions digitally real-time from anywhere in the world. Your lot will be offered for sale in its own auction period, the duration of which will be agreed between ourselves in advance and advertised on your property’s lot page.
Without reserve, at the close of the auction period if the lot was offered without reserve, then on the fall of the virtual auctioneer’s hammer a binding contract is created between the seller and the winning bidder, both parties are legally obliged to complete the purchase, no further negotiation is allowed.
With reserve, if the lot was offered with reserve and the reserve was reached then the above-mentioned procedure is followed. If however, a winning bid is logged which falls short of the with reserve figure then your broker will discuss with you whether you wish to accept the low winning bid, re-auction the property or withdraw the property.
How are you protected as a seller?
Setting a reserve price protects you from having to sell your property for less than you are willing to accept.
All bids at auction are binding in law. At the conclusion of the auction the buyer, who has placed a qualifying winning bid, i.e., it has matched or surpassed any reserve price placed by the seller on the lot, or who has placed a bid that the seller has decided to accept; has entered in to a legally enforceable contract with the seller and is obliged to complete the purchase.
Statistically there is virtually no risk of the sale falling through, less than 1%, because there are serious financial consequences for the buyer if they fail to complete the purchase. If they fall short at the first hurdle, namely they fail to pay the 10% deposit to secure the sale, you can take them to court and claim for the deposit due, for damages, for breach of contract and your associated costs. If they pay the deposit but fail to complete the purchase you get to keep the deposit and additionally you are still within your rights to take them to court, claiming both breach of contract and financial loss.
What do you charge for your services?
All of our sellers must be represented by a broker. If you are not currently represented, we would be delighted to introduce you to our sister company HouseUp. For more information contact our office.
We always work in partnership with your appointed broker not in competition with them. When we are successful in selling a lot at auction on your behalf you will remain liable for any success fee due, as previously agreed between yourself and your broker.
The registration process
You will need to provide us with personal information relating to you, about the lot you wish to sell and about the broker who will represent and assist you through the sales process. In addition, you will need to agree to our term and conditions.
But do not worry, a member of our team will get in touch when it is convenient and guide you through the whole procedure.
The preparatory process
Your lot will be showcased on our website via its own unique numbered lot page. Directed by our project sales manager, we, you and your broker will need to work co-operatively to assemble the necessary information, documentation and imagery needed, not only to best display your property, but also to satisfactorily answer any due diligence queries that a prospective buyer and their representatives might have. We typically allow two working weeks to gather, order and prepare for display this material, prior to the formal launch of the marketing of your lot.
The marketing period
Typically lasting four weeks our Project Sales Manager works alongside your broker, on site as and when necessary, educating potential buyers about the auction process and facilitating buyer registration. Both physical and virtual viewings and inspections can be arranged. We undertake e-shots to our network of 7000+ commission motivated brokers. We send notifications to our extensive database and list of registered users and authorised buyers. We communicate with those who have previously expressed an interest in similar properties, as well as adjacent occupiers, local developers and property investment companies.
Keeping you informed
We provide you with a weekly progress update. We log all enquiries of interest, and our project sales manager maintains close contact with those who have expressed serious intent and interest, assisting them with registration to bid and the granting of authorised buyer status. Should, as is often the case, we receive any pre-auction offers we will present these to you for your consideration.
What happens during the auction period?
Our secure online marketplace allows authorised buyers to participate in our auctions real-time from anywhere in the world. Your lot will be offered for sale in its own auction period.
At the close of the auction period if the lot was offered without reserve, then on the fall of the virtual auctioneer’s hammer a binding contract is created between the seller and the winning bidder, both parties are legally obliged to complete the purchase, no further negotiation is allowed.
If the lot was offered with reserve and the reserve was reached, then the above-mentioned procedure is followed. If, however, a winning bid is logged which falls short of the with reserve figure then your project sales manager and broker will discuss with you whether you wish to accept the low winning bid, re-auction the property or withdraw the property.
What happens after the auction?
As per the terms agreed by all the participants we will populate and electronically sign the sales and purchase agreement on behalf of both you as the seller and the buyer. We will distribute copies to you, the buyer and the respective real estate brokers. Please see our FAQ’s for full details.
Remember auctions are fast. So in most cases you will be handing over the keys in just 20 working days.
What happens if the auction does not go to plan?
If your lot does not sell, do not give up. We will continue to advertise your property on our website for one calendar month after the auction period and will inform you of any offers. On reflection you may decide to withdraw the lot or re-offer it at a future auction.
