To auction or not to auction? That is the question!
Property auctions are super exciting.
The tension rises as the competition heats up between the buyers.
Going. Going. Gone.
Sounds perfect, doesn't it?
Property auctions are super exciting.
Anyone that has caught even a snippet of Homes Under The Hammer will agree.
The tension rises as the competition heats up between the buyers.
The numbers rocket up, getting higher and higher.
People discreetly look around the room to see who is placing bids.
And before you know it, the bidders are down to just 2 parties.
The increments start to slow down until one of the bidders eventually reaches their limit.
Going. Going. Gone.
And BANG. With the noise of the fall of the hammer still ringing in your ears, the property is sold.
All wrapped up in just a few short minutes.
The buyer is committed to the property, and all will go through smoothly, without any lengthy legal process.
Sounds perfect, doesn't it?
Almost makes you wonder why all properties in the UK are not sold in this way.
But the majority are not. And there are many reasons why sellers don't choose this method to sell their property.
Take control!
Predominantly it comes down to control.
Once the figure in the auction has reached the reserve price, the property will sell. Reserve prices are often pitched very low to attract as many potential buyers as possible. But, the final sale price is unknown. Sellers are taking a risk that they might ONLY sell for the reserve price.
Timing
When the hammer falls, the property sale is exchanged.
If you live in that property, you'd have only a few short weeks to move out. That isn't long enough to buy another property. So, you either move into a rented property or buy your new home before the auction so that you can sell the property with vacant possession. But how do you buy a new home without the funds from the sale of the old one?
Pick up a bargain
Property auctions are often considered to sell 'problem' properties or those that need lots of structural work. Because of that, they are seen as a way to pick up a bargain. This could limit your sale price if the audience is primed to pay as little as possible for a property.
So, you can see that there are many occasions that a property auction sale is just not practical for a 'normal' house sale in this country.
But there are lots of benefits.
There is no chance of a sale falling through after it's been agreed. As with all auction sales, the deal is agreed upon once the gavel falls and contracts are exchanged. The deadline is set to complete the sale, and the buyers are committed. There's no backing out, and they can't change their minds later down the line.
It's fast and exciting. There is a short sharp burst of viewings and marketing activity and then a sale on the auction day.
And finally, as with any auction, you just never know. The anticipation of the bids increasing, and you don't actually know how HIGH they could go!
Yes, there is a risk that you might only just scrape past the reserve figure, but there is also a chance that you could sell for MEGABUCKS! As with all risks, there is the chance of a significant reward.
If you have a property you are thinking about selling, let us know. We would be happy to discuss the available options, and who knows, perhaps your property will be on the next episode of Homes Under The Hammer?
And if you've ever been to a property auction, get in touch. We'd love to hear about your experience.