We can be fairly traditional beings with preconceived notions regarding many facets of life. Selling a property at auction is one of these.
Many myths abound regarding property auctions which are generally believed, yet as a company we have seen an enormous rise in the popularity of residential properties selling at auction.
The belief that a property is sold at auction only if it is distressed is no longer the case. Our clients are now driven by the need for convenience and time saving, which is supplied by means of property auctions. Selling through an estate agent can involve very lengthy and complicated chains. On average, in the UK, 35 per cent of sales fall through, causing enormous stress and financial cost to both vendor and purchaser.
Selling at auction gives our clients peace of mind. With the fall of the gavel, exchange of contracts is immediate with completion generally 28 days thereafter.
The vendor is protected by the reserve price which is agreed prior to the sale and spared frequent, unscheduled requests to show the property. Further, the seller does not have to be involved in any negotiation process, which can be a time-consuming exercise.
Another important point to consider is that potential buyers are required to pre-qualify for financing, thus eliminating the wait involved when a purchaser applies for finance after making an offer and is ultimately unable to conclude the transaction if his application for financing is refused. A pertinent point that should be noted is the fact that the purchase price may exceed the seller’s expectations, as competition among the buyers promotes higher bidding.