Would you consider selling your property at auction?

18th June 2023

Would you consider selling your property at auction?

There are many reasons why people choose to sell their property, and these can impact if they choose a traditional method or opt to sell at auction. At Anthony Webb we work with national auction houses to help our vendors choose the right option for them.

Let’s start by looking at what generally motivates people to sell:

·       Relocation: Some property owners may be looking to move to a different area, either for personal or professional reasons.

·       Financial Considerations: Individuals seeking to sell their properties to free up capital or improve their financial situation.

·       Property Upgrades: Homeowners who have outgrown their current property or desire to invest in a larger, more luxurious home.

·       Inheritance: Property owners who have inherited the property and are looking to sell.

Auctions can be a good option if your property needs a lot of repairs, has a short lease, is un-mortgageable for whatever reason making it difficult to sell on the open market or you need to raise funds quickly without any potential delays.

So, let’s consider the benefits of selling your home or property at auction?

Attracting Competitive Bids: Auction can generate competition among potential buyers, potentially resulting in higher offers.

Efficient Selling Process: Individuals who value a streamlined and expedited selling process, where the property is sold on a specific date without the need for prolonged negotiations or an onward chain. Buyers are often cash buyers who effectively bypass the drawn-out mortgage application process.

Certainty of Sale: Auctions provide a level of certainty as the property is sold under transparent and predetermined terms, minimising the risk of a sale falling through.

Access to a Broader Market: Property owners who recognise that an auction can attract a diverse pool of potential buyers, including investors, developers and individuals seeking unique properties.

Cost-Effective Solution: Individuals looking for a cost-effective method to sell their property, as auction fees are typically borne by the buyer rather than the seller.

It's important to note that the auction house will set a guide price for your property that may be lower than you are willing to accept, although you do have the option of setting a reserve (this is the minimum price that you’ll agree to sell the property for.  It will be kept between you and the auction house.). Sellers can feel confident that if you sell your house at auction, the sale is binding from the moment the hammer falls and you will sign and exchange contracts there and then.

If you want to find out more about selling your house at auction, please contact Tony on 020 8882 7888.