If you’re looking for a fast house sale then choosing to sell a house at auction can be a good choice.
Property auctions attract buyers who are ready to purchase. They give sellers some control over the cost of sale sale as you can set a reserve price. However, whilst selling at auction can be desirable there are cons too, so read through this article and make sure selling a house at auction is right for you before you commit.
Whatever you decide, never ever let anyone push you into selling at auction. It’s a fast process and you need to be ready.
What is a reserve price?
Before the property goes to auction you will agree a reserve price with the auctioneer. This is the lowest price you’re willing to take for the house. You need to think carefully about this, because if someone offers the reserve price or over it and the offer is accepted by the auctioneer you are obligated to sell at that price. If you set it too low there’s nothing you can do.
You need to set a realistic price and you can use previous offers if your house has been on the market before or research similar houses to value the property sale.
If your house has been on the market for a while with no interest maybe you need to consider lowering your asking price.
The pros of selling a house at auction
Selling a house at auction can be desirable because once the buyer has committed they have to put down a 10% deposit. You have a guaranteed sale and with multiple property buyers bidding against each other there’s always a possibility they’ll drive the price up.
A property auction often attracts expert buyers and property developers who know what they’re after. If you’re selling a house that needs some work or an unconventional and unique property you might find your property buyer there – cash waiting!
Generally, at a house auctions you’ll make a fast house sale. Your property is likely to sell at auction providing you’ve managed the auction process well and there are enough bidders. Moreover, once you’ve sold the sale will likely be completed within a month.
However, before you jump into selling a house at auction there are some cons to consider…
The cons of selling a house at auction
The main downside of selling a house at auction is that there really is no going back. The bidding process will be over before you know it and once the hammer falls the deal is as good as done. The property buyer pays 10% and you will both sign contracts.
The fast house sale whilst a pro for some can be too much for others. If you’re not ready to vacate the home within a month do not go to auction. The auction moves fast.
Before you sell at auction there are also prices to consider.
Costs of selling at auction
There is a cost to selling at auction and the cost to the auction will depend on the auction terms and conditions so you must check. You must also check other associated costs like advertising.
Generally costs will be around 2.5% of the sale.
Fast alternatives to property auctions
There is an alternative to selling a house fast at auction and that’s selling to a fast property buyer.
Our team of experts will buy any home within 7 days. Unlike the auction – you can set the pace.