What are the benefits of selling a property at auction?
Written by: Paul Thompson on 30th October 2020
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 can proceed with a purchase rather than those in the middle of a property chain.
Here are just some of the reasons why so many people choose to sell a property at auction.
A property sale at auction is legally-binding for both parties, and offers a high degree of security for the seller when compared to traditional methods of sale. Anyone interested in buying a property at auction must commission their survey prior to auction, meaning the purchaser’s due diligence has already been completed before bidding. Contracts are exchanged when the auctioneer’s gavel falls, and the buyer is obliged to pay a deposit of 10% on the day.
Quick and reliable sale
The selling process at auction 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 you can plan ahead with relative confidence post-sale, knowing the auction process is legally-binding for your buyer.
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.
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.
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 property, commercial premises or land.
We provide access to an extensive national database of over 40,000 active property professionals and buyers. The location of your property isn't an issue either, as we have a national office network meaning we can sell any property, anywhere. To see our full list of offices, click here.
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 provides security that it will not be sold for less. However, should you wish to accept a bid lower than the reserve price, there is also inbuilt flexibility within the auction system.
Achieve higher sales 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 where we attract hundreds of potential buyers at the venue (and many more online) - often exceeding those achieved via traditional sales methods.
Looking to sell your property or land at auction?
Whatever property asset you want to sell, wherever it is in the UK, our room and online auctions offer all types of lots including land, residential properties and commercial premises.
Simply call our expert team on 0345 505 1200 who can offer free expert advice on the sale of both property and land. You can also follow this link to arrange a free auction appraisal. You can also learn more about the selling process by reading our selling guide here.
Written by: Paul Thompson on 30th October 2020