Should You Sell Your Property At Auction?

If you’re thinking of selling your property have you considered selling via auction? At Redstones, we offer this facility to all of our clients. It offers a straightforward solution with no estate agency fees to pay and the buyer secures the sale through paying the deposit.

Here we consider some of the reasons for selling at auction and the types of methods available.

Why sell your property at auction?

Selling at auction offers a number of advantages:-

  • In most cases you gain the optimum price for your property which can be higher than selling through an estate agent.
  • Unforeseen legal issues that arise during a ‘conventional’ purchase are avoided.
  • You know that the contract is legally binding the moment the hammer falls at the auction.
  • You aren’t caught up in a sales ‘chain’.

Reasons for selling at auction

Certain properties are more suitable for sale at auction than others, for instance:-

  • A run down property that will need considerable investment and renovation.
  • An unconventional or unique property which can’t always be categorised. For these properties, auctions are ideal as they determine the market price for the seller.
  • A property that is difficult to sell due to location, for example.
  • The need for a quick sale due to a change in personal or financial circumstances.

Before reaching auction

Before your property is placed for auction, you must agree your reserve price. This is a vital part of the process as you are indicating the minimum acceptable price you will accept for the sale of your property. You cannot change your mind once the auction begins.

At Redstones, we have extensive experience at selling property through auction and provide guidance on this matter.

When preparing your property for auction we recommend you treat it as a ‘normal’ house sale and ensure it is presented as well as possible to encourage potential buyers to make a bid during the auction process.

Modern or traditional method?

There are two methods available for selling property at auction and at Redstones we offer both:-

Traditional method of auction : This requires a legal exchange of contracts immediately after the auction has finished and is more suitable for property which has been repossessed or for commercial investments.

Modern auction method : The majority of our clients selling at auction use the Modern (or ‘Conditional’ Auction Method. For both sellers and buyers it is more user friendly, offering a longer period for exchange and completion to take place. The modern method of auction is recommended by Redstones.  It is also closer in the process to a more traditional property purchase. On agreeing to buy, the purchaser pays a non-refundable reservation fee to secure the property. They then have 28 days to exchange contracts and a further 28 days for completion to take place.

Selling your property by auction doesn’t need to be a daunting experience. With the right advice and guidance, it offers a viable way for residential property owners to sell quickly, at an optimum price.

If you are thinking about selling your property contact Redstones today for advice on the most appropriate way forward for your unique circumstances.

For more information on the methods of selling by auction, please visit our website.