A Quick & Efficient Process
Firstly, a property auction is a quick and efficient way to sell a property. If you’re someone who appreciates the ability to plan ahead, auctions are a great way to sell. There is typically a 28-day deadline for buyers to complete in, rather than the drawn-out conveyancing process that often occurs when selling through an estate agent. Buyers are there because they have the financing ready to go, and they can act quickly to buy your property.
In addition to this, auction sales are efficient. Solicitors on both sides have the necessary legal agreements ready to process as soon as the hammer falls, and all the necessary surveys and inspections have taken place prior to the commencement of bidding.
This certainty throughout the process means you know when your funds will be released from the sale, so you can thoroughly plan your next steps. Whether you’re going to invest the funds elsewhere, use them to buy a new family home or unsold auction properties, or use them to pay off debts, you can be certain of completion within a specified time frame.
The Potential for a Higher Price
Often when selling at a property auction there is the potential to sell your property for a higher price than what you might achieve when selling through an estate agent. The competitive nature of bidding means that the price is driven up, and you can be sure that you achieved the best price that you could on the day. Although many buyers try to avoid it, it can’t be helped that emotion comes into play on auction day.
Pre-auction offers will give you a chance to set your expectations for the sale of your property, and a reserve price means that the property will not sell for less than it’s worth. After all, unsold auction properties are better than selling for too low a price! In addition to this, once the hammer falls there is no room for negotiation. When selling through an estate agent, the buyer may come back with revised offers as a result of various inspections or delays. This is not the case when selling at a property auction.
An Increased Exposure
Sellers at a property auction also benefit from the increased marketing that their property receives. An auction house such as Real Auction has a database of buyers to reach out to when a new property becomes available.
Since auction houses like Real Auction often operate on a national scale, the reach of marketing is targeted beyond just the local area. Auctions attract buyers from up and down the country, and even overseas investors. This means that the risk of your property falling into the category of unsold auction properties is slim.
Moreover, you can benefit from open house viewings organised by Real Auction, which will allow you to get a feel for the number of potential buyers for your property, and use this to set your reserve price.
A Continued Income
Auction sales have the added benefit of provided a continued income right up until the moment the hammer falls. If you’re a property investor, you’re able to sell your investment property with a tenant in situ, meaning that you can benefit from the rental income until the paperwork is signed.
You don’t need to worry about evictions, or tenants causing a problem for you and delaying the process. Whether the property has residential, industrial or commercial tenants, the property can be sold without them leaving the premises so that they are cash-flowing immediately for the new buyer. This also means that unsold auction properties can continue to provide an income for their owners until they are sold.
A Reliable Sale
Due to the fact that property surveys and inspections are carried out in advance of the auction, you can be sure of a reliable sale at a property auction. Once the hammer falls, the buyer is legally obligated to purchase the property at the price they have offered, and the contracts have been exchanged. In most cases, the buyer is required to pay a deposit on the day.
Transparency Among Buyers and Sellers
When selling at a property auction, you’ll have the added benefit of transparency among buyers and sellers. There is no risk of a sale falling through due to miscommunication, as is sometimes the case with estate agent sales. This is because all the offers are on the table, the buyer has likely already produced proof of funds, and everyone is on the same page with regards to property surveys and inspections.
