Property auctions can be a worthwhile option for sellers looking to sell their homes quickly and with greater certainty. Let’s go through the pros and cons to help you decide if this method is right for you.
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Are property auctions worth it?
Property auctions offer unique advantages for sellers, but they also come with potential drawbacks. Understanding these can help you make an informed decision about whether selling your property at auction is the best choice for your situation.
What are the benefits of selling a property at auction?
Selling a property at auction can offer several advantages:
- Speed: Auctions typically complete within 6-8 weeks from start to finish.
- Certainty: Once the hammer falls, the sale is legally binding.
- Competitive bidding: Multiple interested buyers can drive up the price.
- No chain: Buyers must have funds ready, reducing the risk of sale fall-throughs.
- Suitable for unique properties: Auctions can attract buyers for non-standard homes.
How does the auction process work for sellers?
The auction process for sellers involves several steps:
- Choose an auction house
- Set a reserve price
- Prepare legal documents
- Market the property
- Hold viewings
- Auction day
- Complete the sale
Tip: Research multiple auction houses to find one with experience selling properties similar to yours.
What types of properties sell well at auction?
Certain properties tend to perform particularly well at auction:
- Properties in need of renovation
- Unique or unusual homes
- Properties with potential for development
- Tenanted properties
- Probate sales
How much does it cost to sell a property at auction?
Costs for selling at auction typically include:
| Fee Type | Typical Cost |
|---|---|
| Entry Fee | £300-£500 |
| Commission | 2-2.5% of sale price |
| Legal Pack | £200-£500 |
| Marketing | Included in commission |
Tip: Factor in these costs when setting your reserve price to ensure you achieve your desired net amount.
What is the difference between guide price and reserve price?
• Guide price: The advertised price to attract interest
• Reserve price: The minimum price you’ll accept for the property
The reserve price is usually set 10-20% below the guide price to encourage bidding.
How can I maximise my chances of a successful auction sale?
To increase your chances of a successful auction sale:
- Set a realistic reserve price
- Ensure your property is well-presented
- Provide a comprehensive legal pack
- Allow plenty of viewing opportunities
- Choose an experienced auctioneer
Are there any risks to selling at auction?
While auctions offer many benefits, there are some risks to consider:
- Lower sale price: Properties may sell for less than on the open market
- Upfront costs: You’ll need to pay for the legal pack before the auction
- No sale: If your reserve isn’t met, the property won’t sell
- Limited market: Some buyers are put off by the auction process
How does online property auction differ from traditional auctions?
Online property auctions have become increasingly popular, offering:
- Wider reach to potential buyers
- Lower entry costs for sellers
- Flexibility in auction duration
- Real-time bidding updates
However, they may lack the excitement and competitive atmosphere of in-room auctions.
What happens if my property doesn’t sell at auction?
If your property doesn’t reach its reserve price at auction:
- The auctioneer may try to negotiate with the highest bidder
- You can consider lowering your reserve price
- The property can be re-entered into a future auction
- You might choose to sell through other methods
Tip: Discuss your options with the auctioneer before the auction day to have a plan in place.
Can I still use an estate agent if I’m considering auction?
Yes, many estate agents now offer auction services alongside traditional sales methods. This can provide you with flexibility and expert advice on the best approach for your property.
From Headache to Hassle-Free: Your Property Sale Simplified
Selling a property can feel like navigating a labyrinth blindfolded. You’re bombarded with estate agents making grand promises, only to be let down when the rubber meets the road. Or perhaps you’ve considered the high-stakes gamble of an auction, where your home’s fate hangs in the balance of a few intense minutes. And if you’re dealing with an inherited property? Well, that’s a whole different kettle of fish.
But what if there was a way to sidestep this property market obstacle course entirely? That’s where Property Saviour steps in. We’re not here to add to your stress or leave you in limbo. Our approach is refreshingly simple: we offer a fair cash price for your property and can complete the sale in as little as 10 days.
Picture this: no more endless parade of strangers traipsing through your home, no more nail-biting waits to see if a buyer will follow through, and no need to pour money into sprucing up your property. We purchase homes in any condition, from fixer-uppers to show-homes.
Why not give us a bell? Our team is always ready for a friendly natter about your situation. We’ll lay out your options and provide a no-obligation cash offer. It’s your opportunity to bid farewell to estate agent frustrations and auction anxieties, and embrace a swift, straightforward sale on your terms.
With Property Saviour, you can finally breathe, knowing your property sale is in capable hands. Say goodbye to restless nights and uncertainty, and hello to a clear-cut path forward. Doesn’t that sound like a breath of fresh air?
Property Saviour Price Promise
- The price we’ll offer is the price that you will receive with no hidden deductions.
- Be careful with ‘cash buyers’ who require a valuation needed for a mortgage or bridging loan.
- These valuations or surveys result in delays and price reductions later on.
- We are cash buyers. There are no surveys.
- We always provide proof of funds with every formal offer issued.
We'll Pay £1,500 Towards Your Legal Fees
- No long exclusivity agreement to sign because we are the buyers.
- You are welcome to use your own solicitor.
- If you don’t have one, we can ask our solicitors for recommendations.
- We share our solicitor’s details and issue a Memorandum of Sale.
Sell With Certainty & Speed
- Our approach is transparent and ethical, which is why sellers trust us.
- 100% Discretion guaranteed.
- If you have another buyer, you can put us in a contracts race to see who completes first.
- Complete in 10 days or at a timescale that works for you. You are in control.
