Property auctions offer a stripped down and streamlined process of transferring property to the people who engage in them. As a rule, they are a comparatively simple process, just an advertised auction that takes place quickly and results in a sale of property. There are really only a few key people involved in each transaction and as a result, only a few key sets of actions, responsibilities, and motivations. There are three main groups of people involved in each transaction, no more and no less.
Without a property owner looking to sell their asset, there would be no property auction at all. In general the seller will have their own reasons for preferring a property auction. The benefits of this style of transaction for sellers are the speed and certainty that it offers in a climate of low risk and responsibility. Selling a home or other piece of property at auction does not require the kind of intensive and expensive effort that putting the same piece of property on the market does. In addition, it offers the promise of a timely and easily completed sale. Once a seller's property has been legally placed in a property auction and bid upon, the winning bidder is required to complete the sale, which can be done in a matter of days. It is a simple and relatively risk-free process for the seller.
Without an auctioneer, there is simply no one to help sell the property. This person's involvement is what makes a property auction happen. Like a real estate agent, an auctioneer acts as a go between for the buyer and the seller. He or she will literally create the event that allows the buyer and seller to connect and complete their transaction. The auctioneer creates and promotes the auction, then runs the event. In return for his or her work, the auctioneer earns a percentage of the property's sale price. For this reason, it is to his or her advantage to ensure the auction's visibility and success. Their commission depends upon their skills.
Without a potential buyer (and preferably several) any property auction would find itself doomed to incompletion. The buyer at a property auction is the driving force behind the whole event. The seller may make the process possible and the auctioneer may guide the event to its logical conclusion, but the buyer is the only person who can ensure that everyone involved in the transaction get what they came for. If no one comes to buy a property at auction, then no one sells that property or earns a commission upon that sale. But buyers do come to property auctions and they do so for many of the same reasons as seller and auctioneers. Property auctions offer the potential for good property deals without the extra complications of time and money that buying through an estate agent. As such, they are simply good sense opportunities for the savvy buyer.