Why Sell Your Property at Auction?
Selling your property through auction means you’ll get less money for your property, doesn’t it? No, is the answer! If your property is suitable for auction you should expect to sell your property for market value or in fact above value. This post will hopefully enlighten you on the advantages of selling your property at auction.
Guiding you through the process will be an experienced auction team who will decide whether your property is suitable for auction. The team have expert knowledge of the area and will work on your behalf to attract genuine buyers who are able to proceed with a purchase rather than those in the middle of a property chain. This is a significant advantage for the seller as it ensures that you can plan ahead in confidence in comparison with those selling traditionally who have no idea when a sale may go through.
Auction or Traditional Sale?
An advantage to selling at auction is the speed and certainty of the process. Within 28 days you can sell your property, have received payment and all this with less than a 1% fall through rate. Once the hammer falls it delivers a legally binding sale with contracts exchanged, neither party can then pull out or attempt to renegotiate the price. All this said, the speed and certainty of auction sales means it has become the modern method to selling property.
An auction team with expert knowledge of your local area will value your property to set a guide price, the guide price is used to guide potential buyers as to how much a property could be worth but will not necessarily sell for the guide price. A reserve price will also be set between the seller and the auctioneer, this will be an undisclosed figure and will not sell for below the price set.
The auction team will then work to generate interest for your property before it enters the auction room. Generating interest before the auction can build the number of interested buyers, this can create a bidding war which can raise the price significantly higher than the guide price. Auction properties frequently sell for more than the guide price, but this is never a guarantee. Those who are interested are genuine buyers and investors who are ready to bid and purchase the property.
Compare the auction process with a traditional house sale which can be a long gruelling process. A property could be on the market for months without any guarantee of sale. Another disadvantage to traditional sales is an offer can be made, and then if accepted the potential buyer would still reserve the right to pull out right up until the last minute. This can make the whole process a stressful limbo like experience. This means that you have no confidence or certainty of sale until everything is signed off and exchanged. This could potentially mean you miss out on any potential new investments you would like to make or a dream new home as you wait for your property to sell. Traditional sales are not to be painted in the wrong light, however. They can be suitable for some people if they prefer to wait for a buyer, but the auction team will always do what is best for the seller. If they believe a traditional sale is more suitable than putting the property through auction they will advise the seller to do exactly that.
If you’re thinking about selling your property, please give us a call to see how Lemon Lettings & Sales, can help you!
Thank you for reading and next week we’ll discuss another exciting topic! If you have any questions or need to chat to us, please feel free to contact us. In the meantime, why not visit our blog. Or sign up to our Mailing List to receive automatic updates of new blog posts and exciting competitions.