Faster Sales:
Auctions can significantly reduce the time to sell compared to traditional
methods. Once bidding is complete and contracts are exchanged, the sale is
legally binding, minimising the risk of the buyer pulling out.
Legally Binding Agreement:
Unlike private treaty sales, where buyers can withdraw before exchange, auctions
create a legally binding contract at the fall of the hammer.
Fixed Completion Dates:
Auctions often have pre-set completion dates, providing a clear timeline for both
buyer and seller.
Potential for Higher Prices:
In a competitive auction environment, multiple buyers vying for the same property
can drive up the final sale price.
Attracts Serious Buyers:
Auctions attract cash buyers, investors, and those with a genuine interest in
purchasing, reducing the likelihood of deals falling through.
Lower Selling Costs:
While auction fees apply, the overall selling costs can be lower compared to
traditional methods, especially when considering the time saved.
Timeframe:
Auctions can offer a relatively quick sale, but the exact timeline depends on the
specific auction type (traditional or modern).
Property Suitability:
Auctions are suitable for various property types, including those needing
renovation, those with tenants, or those requiring a quick sale.
Reserve Price:
Sellers can set a reserve price, which is the minimum price they are willing to
accept.
Marketing:
Auction houses market properties through various channels, including their
websites, property portals, and catalogues.
Legal Advice:
It's advisable for sellers to have a solicitor involved to ensure all legal aspects of
the sale are handled correctly.
Tenant Issues:
Auctions can be used to sell properties with tenants, but the specific terms
regarding the tenant's notice period should be clarified.
Costs:
Selling at auction involves costs like entry fees and sales commission, which
should be clarified with the auction house.
Problem Properties:
Auctions are well-suited for properties with structural issues, non-standard
construction, short leases, or other challenges that might deter conventional
buyers.
Repossessions and Inherited Properties:
Auctions are a common route for selling properties in these situations due to the
speed and certainty they offer.
Unusual Properties:
Properties that are difficult to value or market through traditional channels can find
a buyer at auction.
Investment Properties:
Auctions are popular with investors looking for buy-to-let opportunities or properties
requiring renovation.