The Benefits of Selling Your Property by Auction in the UK
Unearth the potential of selling your property via an auction as we unravel its many benefits. Dive into the world of accelerated sales, competitive bidding, and potentially lucrative prices, transforming your selling journey. Read our blog to discover why auctions could be your key to a successful property deal!
Despite conventional methods remaining dominant in the property market, selling a property by auction in the UK has significantly gained popularity over the past few years. Many are discovering that this avenue not only expedites the sales process but can also yield significant financial rewards. In this blog post, we'll delve into the impressive benefits of auctioning your property in the UK, considering aspects from the seller's perspective.
Expedited Sales Process
One of the key advantages of selling a property by auction is the speed of the sales process. Traditional property sales can take months due to property chains, mortgage approval processes, and various valuations and surveys. However, auctions provide a much more streamlined avenue. Once the hammer falls, the highest bidder is legally bound to purchase your property. The entire process, from listing to completion, can take as little as six weeks, a fraction of the time typically needed for traditional sales.
Financial Certainty
In the typical housing market, sellers often find themselves at the mercy of potential buyers who may re-negotiate, drop out, or delay due to financial contingencies. However, with auctions, sellers can enjoy a higher level of financial certainty. On the auction day, the buyer is required to pay a non-refundable deposit, usually 10% of the purchase price, and they are legally committed to completing the purchase within 28 days. This eliminates the risk of deals falling through and guarantees sellers a sense of financial security.
Transparency
Auctions are inherently transparent processes. All bids are made publicly, which means you get to see exactly how much each interested party is willing to pay for your property. Additionally, all interested parties can see competing bids, creating a competitive environment that could potentially increase your final selling price.
Competitive Bidding
The competitive nature of an auction often drives up the final sale price. Buyers come prepared to outbid their competition, and this competitive atmosphere can result in a higher sale price for your property. Furthermore, setting a reserve price ensures you won’t have to part with your property for less than you’re comfortable with.
Wider Reach
Auction houses in the UK, many of which have embraced online platforms, offer your property a much wider exposure than traditional estate agents. Your property is marketed nationally, drawing the attention of a broad range of potential buyers who often search for better performing investment properties than are in their own area. This expanded reach may increase the number of interested parties and consequently drive up the final sale price.
Convenience and Ease
Selling a property by auction can also relieve a lot of stress and administrative burdens for sellers. Auctioneers take care of most of the heavy lifting, from marketing the property, organising viewings, to managing the legal paperwork. Once your property is listed with an auction house, you can essentially sit back and watch the process unfold.
Potential for Properties in Poor Condition
Properties that are in poor condition or require significant renovation can benefit greatly from auction sales. Traditional buyers may shy away from such properties due to the financial risk and effort involved in refurbishing. However, these properties are often sought after at auctions by investors and developers looking for a project or a bargain.
Sell Your Property for 0% Commission!
At Professional Properties, we partner with SDL Auctions, one of the leading Auction businesses in the UK. If, after we have appraised your property and had discussions regarding the best way to market and sell your property, we decide that auction would be the way forward, we will refer your property to SDL Auctions and if it sells, you pay NO commission! The buyer will pay all fees.
In conclusion, selling a property by auction in the UK presents numerous benefits, making it an attractive option for sellers seeking speed, certainty, transparency, and convenience. It’s a route that can deliver excellent financial returns while mitigating the common hassles of the traditional selling process. However, as with all sales strategies, it is advisable to discuss your own objectives and goals to determine whether this route is the most suitable for your specific property and circumstances.