Many always think that people sell through auction because their house is falling down, right? Or that it’s in such disrepair only someone that has either deep pockets or knows what their doing is a potential buyer right? Homes under the hammer style?
No… no… no!
This may have been the case years and years ago but we’re in the 21st century so let’s get with the times. Did you know, on average, 1 out of every 3 private treaty sales fall through? With over a million of houses selling every year in the UK that’s three hundred and thirty-three thousand that will fall through at least once! And let’s be honest… anyone who is a homeowner knows the stress of the journey.
Welcome to Connect UK’s Auction Academy – Here to answer all your property auction questions.
So why do people sell at auction? Well the obvious answer is speed. If the property or land isn’t bought before auction day and sells in the room contracts are exchanged upon the fall of the gavel.
Completion is then, generally, 28 days after. However, what many don’t know is that completion can be set at 42 days (6 weeks) from exchange or in fact, anywhere in between. As long as all parties are notified, your timeframe, as the seller, is paramount.
Ok so speed is a great motivator but what else?
Security – When that gavel falls the lot is sold and contacts are legally binding between the buyer and seller. Imagine a sale with no possible fall throughs, gazumping or gazundering. Neither party can pull out. Not only this, this method of sale eliminates any long negotiation processes and seller chains.