Choosing to sell your house or property by auction instead of using estate agents (commonly known as a private treaty) can pay off. Here are the top 5 reasons why to sell by auction.
1. Saves Time
If you are looking to sell your house or property fast, then auction is the best option for you. From the time you instruct your auctioneer to list your property, it will only take approximately two months for completion of the entire process. Your auctioneer should run through the whole process; plan for open days where prospective bidders are invited to view the property and also set a date for the auction. Expect to hand over your keys 28 days later after the hammer drops.
2. Extensive Marketing
There is this common myth that properties going for auction will only get advertised in the auctioneer’s catalog. This is not true, in fact, all auctioneers will promote your house or property across the country, by listing it on some big property portals like Rightmove and Zoopla. This ensures that your property gets maximum exposure ahead of auction.
3. Legal and Biding
The fall of the hammer creates a legal binding contract, which is made formal by a signature on the memorandum of sale that forms part of the catalog. This avoids any possible delays and downward negotiations that are often part of buying and selling a property through private treaty. On average, one-third of properties sold through private treaties fall through after closing the deal. So selling by auction is by far a better option.
4. Ensures That Your Property Sells at Best Price
All sellers would want to achieve best prices for their property, and all buyers would want to feel that they are acquiring the property at a best fair price. But who decides what is fair?
Selling through auction is the most efficient and best way to make sure that a property sells at the true market price. Buyers that participate an auction have done their due diligence prior, and they know what they are willing to pay for a property. They’re bidding is in a very competitive environment, and buyers themselves determine the price.
Only the highest bidder get to go with the property. Sellers also have the advantage of setting the minimum price to start the bid.
5. No Gazundering
The buyer is legally bound to the sale once the hammer drops and must pay a deposit of 10% of the total sale price of the property before leaving the auction house. This eliminates any chances of being gazundered (a situation where the buyer lowers their offer last minute)