The methods of auctions have changed over the years and so has the misconception that auctions are limited, dated and only used by cash ready investors. We've partnered with Iamsold who offer both traditional and modern methods of selling your property at auction.
Selling your property at auction could be a great opportunity to sell securely and quickly with little hassle. There are also many benefits to auctions.
No sale, no fee
Putting your property up for auction won't cost you a penny until it sells. Iamsold charge an auction pack fee of £445 inc VAT once the hammer has gone down on your sale.
You, the seller, could keep all the money from the sale. This is because the buyer pays a non-refundable reservation fee, typically 4.2% inc VAT of the purchase price (subject to a minimum of £6,000 inc VAT). At this point the buyer will sign a reservation agreement which secures them the property.
With the buyer signing a reservation agreement and paying a non-refundable reservation fee, 95% of Iamsold's transactions go on to complete*. With private treaty (open market) transactions, on average 70% break down leaving buyers and sellers with frustration and costs to pay.
Undisclosed reservation price
Every auction has a reservation price which is set by the seller. This ensures the property will never be sold at a price that the seller isn't happy with.
56 day completion timescale
These fixed, realistic timescales are set from the start to ensure the process runs as quickly and smoothly as possible. On average, Iamsold's completion rate is 44 days, compared to 126 days for private treaty sales**.
If selling at auction sounds like something that would interest you, you can find out more about Iamsold here.
* and ** source: Iamsold
Things to consider
No guaranteed sale
Whether your reservation price is too high, your property hasn't been marketed as well as it could've or there's just no interest, you're not guaranteed to sell your property at an auction. Bear in mind if your property doesn't sell you're very likely to have to pay to re-advertise it.
You might get less than you hoped
When selling a property at an auction you can never be sure what price you're going to get. This could not only be disappointing but it could scupper your chances of buying another property if you're expecting to get a certain amount. Remember, you have the option to set a reservation price on any property that you're selling - this means it won't sell for anything less than the price you've agreed.
Not all buyers like the idea of purchasing a property at an auction. It might be worth speaking to an estate agency to see if selling your property the traditional way is better for you. You can call us today on 0344 481 0025 to discuss your requirements.
All sales are final
This could also be seen as an advantage but once the hammer falls there's no going back, even if you got less money than you hoped or your circumstances change. You must be 100% sure that you want to sell before putting your property up for auction.
Find out more about selling your property at an auction.