When you enter your commercial property into an auction you may not have to wait for the hammer to fall to sell it. The auctioneer’s catalogue is available in advance and, in some cases, bidders may be prepared to make an offer prior to auction day. The auction house will discuss this with you and keep you informed of any interest.
If this happens you will need to consider it carefully. If you have more than one interested party you are in a strong position and you may end up being offered a price you feel you can’t refuse. If this is the case, common auction conditions will still apply but you don’t have to accept any of the bids.
Instead, you could still choose to go to auction and adjust the reserve price to reflect the highest offer. If the bidding does not match this you could always approach one of the earlier bidders with a view to reopening negotiations.
You should also remember that if there is interest in your property prior to auction, this is likely to be an indication that it will attract competitive bidding on auction day itself. However, there are no guarantees, and the choice will be entirely down to you. As a simple guideline, it would perhaps be advisable not to accept an offer lower than the reserve, but any offers that exceed it may be worth considering.
Maximising the Viewing Opportunities for Your Auction Property
Selling Your Commercial Property on the Auction Day