Property auction underwriting is a strategic service that ensures a guaranteed sale of a property at auction, providing sellers with certainty and security. This service is particularly advantageous for sellers who want assurance that their property will sell, regardless of the auction outcome. If the property sells at auction, the underwriter commits to paying more than the guide price, offering a compelling proposition for sellers.
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Benefits of Auction Underwriting for Sellers
These are some of the benefits of using a property underwriting service:
- Guaranteed Sale: Auction underwriting guarantees a sale, whether or not the property achieves the desired price at auction, thus eliminating the uncertainty associated with traditional sales.
- Higher Sale Price: The commitment to pay 20% more than the guide price if the property sells at auction can result in a higher final sale price, maximising the seller’s return.
- Risk Mitigation: By ensuring a sale, auction underwriting reduces the risks and stress associated with selling a property.
- Speed and Efficiency: The process is typically faster than conventional sales, allowing sellers to quickly liquidate their assets for other investments or personal needs.
Potential Challenges in Property Auctions
While auction underwriting offers many benefits, there are potential pitfalls in the auction process itself:
- Due Diligence Failures: Buyers may fail to conduct proper due diligence, leading to post-purchase issues such as structural problems or legal complications.
- Auction House Variability: Not all auction houses are equal. Some may have higher fees or less effective marketing strategies, impacting the sale’s success.
- Limited Buyer Pool: Auctions can sometimes limit the pool of potential buyers, especially if the auction is not well-publicised or accessible.
- Legal Commitments: Once the hammer falls, the sale is legally binding, leaving no room for renegotiation if issues arise.
Types of Auction Houses
There are two main types of auction houses – traditional auctions and Modern Method of Auction:
| Traditional Auction | Modern Auction |
|---|---|
| Quick and less flexible | More time and flexibility |
| Immediate contract exchange | Online bidding with a reservation fee |
| Favoured by cash buyers | Suitable for mortgage buyers |
Traditional auctions are typically faster and require immediate contract exchange, making them less flexible but preferred by experienced investors and cash buyers. Modern auctions, on the other hand, offer more time for buyers to arrange financing and are conducted online, allowing for broader participation.
What is auction underwriting?
Auction underwriting is a service that guarantees the sale of a property at auction, providing sellers with certainty and potentially higher returns.
How does auction underwriting work?
An underwriter agrees to purchase the property if it doesn’t sell at auction, often paying a premium above the guide price if it does sell.
How Property Saviour's Auction Underwriting Works?
This is step by step process of how our auction underwriting service works:
- Property Valuation: We conduct a thorough assessment of your property to determine its market value.
- Underwriting Agreement: We agree on a minimum sale price (the underwritten price) with you.
- Auction Preparation: We handle all the necessary paperwork and marketing to prepare your property for auction.
- Auction Day: Your property is presented to potential buyers at our auction.
- Outcome:
- If the property sells above the underwritten price, you receive the higher amount.
- If it doesn’t reach the underwritten price, we purchase the property at the agreed price.
What are the costs involved in property auction underwriting?
Unlike other auction houses, Property Saviour covers all costs associated with the sale, including:
- Entry fees
- Marketing fees
- Legal pack preparation
- Auctioneer’s commission
- Searches
Benefits of Property Saviour's Auction Underwriting for Sellers
These are some of benefits of working with us:
- Guaranteed Sale: We guarantee a sale, eliminating the uncertainty associated with traditional sales.
- Higher Sale Price: If the property sells at auction, we commit to paying more than the guide price, maximising your return.
- Speed and Efficiency: Our process is typically faster than conventional sale, allowing you to quickly liquidate your assets.
- Expert Support: Our team of experienced professionals guides you through every step of the process.
What if my property doesn't sell at auction?
Don’t worry – Property Saviour guarantees to buy your property at the underwritten price if it doesn’t sell at auction. This ensures you have a guaranteed sale, no matter what.
How long does the process take?
Our auction underwriting process is typically much faster than traditional sales methods. From initial valuation to completion, the process usually takes about 6-8 weeks.
Are there any fees I need to pay?
No. Property Saviour covers all costs associated with the auction process, including legal fees, marketing costs, and auction house fees.
This means you can sell your property without any out-of-pocket expenses. Even if property doesn’t sell, we will have paid your fees.
What are the risks of selling at auction?
If you are selling on your own the risks include not reaching the reserve price, high auction fees, and the competitive nature of bidding which may deter some buyers.
Why Choose Property Saviour for Auction Underwriting Service?
If you’re considering selling your property and want the assurance of a guaranteed sale, Property Saviour can help.
- Real Cash Buyers: We have the funds ready to purchase your property, ensuring a quick and hassle-free sale.
- No Hidden Fees: We cover all costs associated with the sale, providing transparency and peace of mind.
- Experienced Team: Our property experts have extensive knowledge of the UK property market and auction processes.
- Flexible Timelines: We can work to your preferred timescale, whether you need a quick sale or more time to prepare.
If you’re considering selling your property and want the assurance of a guaranteed sale with no hidden costs, Property Saviour’s auction underwriting service is the ideal solution. Contact us today to learn more about how we can help you achieve a successful and stress-free property sale.
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.
