Should I sell my house at auction?
Aug 6, 2021
There is something undeniably exciting about a live auction. For sellers, bidders and observers alike, the process can be exhilarating. But is that necessarily something you’re looking for when trying to sell a house?
For many people, the traditional market route continues to be the first choice. They’ll pick an estate agent and have them manage things through to sale. It’s not a flawless process – in fact, there are many pitfalls in what can be a protracted exercise – but it’s still the largely preferred option.
Growing awareness of auction as an alternative has meant, however, that we are seeing more and more enquiries about this method of house sale.
What are the benefits of auction?
Speed, ease and certainty are the main advantages of auction over a market sale. Auctions are quick (they can even be done online), and a binding contract happens as soon as the successful bidder is confirmed. Completion usually takes place within a month of the auction, so it’s far speedier than the usual market sale.
Most of the legal work happens upfront; property solicitors like us prepare a legal pack which contains the usual documents you’d expect to see in any property sale: Register of Title, Land Registry searches, details of any planning permissions, for example. It’s also possible to add specific conditions to the legal pack, and it’s for the bidders to read and understand the terms.
That last point is important, as auctions are often used to sell less-than-perfect properties. Some have issues with their title or structure. Some are in less desirable conditions or areas. But defects can make for attractive auction purchases, and bidders accept the risks before entering their bids.
Are all properties suited to auction?
Many that might be extremely difficult to sell via the estate agency route will sell at auction. Potential buyers are looking for a bargain, and may be perfectly prepared to take on a project or a challenge, however big.
While that’s great news for some property owners, it means that auction might not be the best option for you if you own a very saleable property. If yours is a popular style of house in a popular part of town, for example, you may find it beneficial to look into the estate agency option first of all (assuming a good price, rather than a quick transaction, is your aim).
For advice about property sales, purchases or any other property matter, contact us on on email@example.com or 01264 353411.
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