Top 10 reasons to sell your property at auction
Written by: Paul Thompson on 2nd January 2018
Selling property at auction has become a popular choice for many homeowners and investors, due to the speed and guaranteed nature of the transaction once the auction ends. It is a tried-and-trusted, straightforward process that takes advantage of an auctioneer’s local knowledge, attracting buyers who are able to proceed with a purchase rather than those in the middle of a property chain.
Here are 10 of the top reasons to sell your property in this way.
Secure method with genuine buyers
A property sale at auction is legally-binding for both parties, and offers a high degree of security for the seller when compared with traditional methods of sale. Anyone interested in purchasing the property must commission their survey prior to auction. Contracts are exchanged when the auctioneer’s gavel falls, and the buyer is obliged to pay a deposit of 10% whilst at the auction house.
Speed of sale
The selling process generally takes around six to eight weeks from start to finish, and is far quicker than selling in the traditional way. The auction itself is likely to be extremely fast-paced, and once it has ended a completion date is set - usually around 28 days later.
Compare this with the time taken to sell a property using the services of an estate agent and it is clear that you can plan your life with relative confidence post-sale, knowing the auction process is legally-binding for your buyer.
Transparency of process
Traditional methods of buying and selling property are sometimes characterised by caution and secrecy, with both parties reluctant to disclose too much information. Auctions, on the other hand, are public processes where transparency is a key part of their success. There are no long delays, you know that buyers can afford the purchase, and crucially, that they have their finances in order.
If bidding becomes competitive, the price achieved for your property can be much higher than anticipated. When a ‘bidding war’ starts, it is often fuelled by high emotion and dogged competition between prospective buyers.
In a matter of seconds the sale can be over, but with an outcome far better than you anticipated. Our experienced auctioneers at Pugh & Co understand how to attract interest in a particular lot, and inject enthusiasm in those intending to bid so that you stand the best chance of achieving a high sale price for your property.
The absence of a property chain allows a fixed timescale to be applied to the auction process. This is a very attractive proposition for both buyers and sellers, as it streamlines a process that can take months to complete via other routes. You know with certainty that the proceeds of sale will be available by a specific date, giving you the confidence to release capital and the freedom to carry out any plans for future purchases of your own.
Auctioneers often operate on a national level, as well as being local experts. Exposure to both markets optimises your chances of success on auction day, regardless of whether you are selling a residential or commercial property.
According to industry title Estates Gazette Pugh & Co has one of the highest sales success rates in the UK. Our extensive nationwide database of potential buyers/investors allows Pugh & Co to provide enhanced advertising and marketing – a crucial pre-auction process that attracts maximum interest, and can encourage more competitive bidding given the wider audience.
A fixed reserve price is set prior to auction to ensure you receive an acceptable amount for your property - this is not disclosed to potential buyers. It protects the property’s inherent value, and reassures you that it will not be sold for less. Should you wish to accept a bid lower than the reserve price, however, there is also inbuilt flexibility within the auction system.
Achieve higher prices
Many properties reach far in excess of their reserve price and, while it cannot be guaranteed, there is a good chance that you will achieve an excellent result on auction day. High prices are common for properties sold at auction - especially at Pugh & Co auctions where we attract hundreds of potential buyers at the venue (and many more online) - often exceeding those achieved via traditional sales methods.
Continuous income for investors
If you are an investor, receiving income from your tenants for as long as possible during the sales process, is crucial. If you sell without vacant possession, you will continue to receive income until the completion date.
No change to the sale price
When you sell your home via an estate agent, surveys and searches are usually carried out following your acceptance of an offer. This can lead to price reductions should anything untoward be found. By selling at auction, the price you achieve on the day is the amount you receive, offering price-certainty and the peace of mind to be able to plan ahead financially.
Selling your home via the auction process offers many significant benefits over traditional methods. Greater certainty over the outcome, and a much reduced timescale for completion, allow you to implement your own plans with confidence.
Pugh & Co can help you sell your property at auction using our extensive network of prospective buyers nationwide. We offer a free property appraisal, and a team of highly experienced and knowledgeable auction professionals.
Written by: Paul Thompson on 2nd January 2018
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