During our auction process, we set a reserve price together, which is the minimum price you would accept for your property. As this price is secret and only you and us know it, we also have to set a lower price from which negotiations can start. This is opposite to the usual estate agent route, where you would set your price higher and expect people to negotiate it down. With our modern online auction, we set the price low and people bid higher.

The starting bid is decided on a case-by-case basis. It can be near the reserve price or it can be miles off, it all depends on a range of factors. It’s a common reaction for sellers to be alarmed at how low the starting bid has been set, especially when they see the price widely published online and offline.

The usual concern from the seller is that the starting bid will be viewed as the value of the property and they fear prospective buyers will think there’s something wrong with the property. This is an understandable reaction, but if you think about it from the perspective of a buyer you will see the advantage it has.

Advertising a property with a low starting bid attracts the attention of more buyers and generates an overall greater level of interest. This is needed to drive up the end sale price. More prospective buyers will view the property and carry out their research and they will inevitably see the property is worth more than the starting bid. These will be the buyers engaged in the auction process, ready to bid, seeing the property as an absolute bargain.

So remember, don’t panic when you hear the starting bid advice and just think: more bidders means competitive bidding at auction = higher price reached for your property.

Find out if auction is right for you here, and the reasons why many other people have opted for this great option.

Please see the above and below, recently sold properties, which have all sold way above the starting bid.