Sell your home through auction
This is a blog post about how to sell your home through auction.
There are many ways to sell your property, but the auction is definitely one of the most lucrative for both buyers and sellers.
If you're not convinced, here are six advantages that make it worth considering:
1) Speed: Auctions happen quickly so properties can be sold in minutes rather than days or weeks.
2) Flexibility: Auctions can be scheduled for a day and time that suits you, which is convenient if you have other commitments.
3) Popularity: Auction is the second largest choice of the British public, so if you're seeking a quick sale then this may be your best option.
4) Fairness: All properties are sold on an equal basis, so there's no room for price fixing or other unfair practice.
5) Best value: Since there's no bidding limit, it means bidders have to go over their initial ceiling when they want to win. You'll therefore get the best price possible as there's not as much competition as in other methods of sale.
6) Ownership: All of the money that is made from a sale goes to the seller. So, if you're selling your home, you'll get paid immediately and any surplus will go to you when the auction is over.
So now that you know how beneficial auctions are and why it's worth trying them, let's jump right in and find out how they work.
What to expect at an auction
An auction works on the same principles as a traditional sale agreement, but with a few minor differences.
The auctioneer acts as a middleman and is the person who will help you sell your property. His job is to show people around your house, explain the process of an auction and set a reserve price.
When this reserve price is met, which we'll look at in more detail later, he will end the auction and a sale should be made.
The buyer will then have to complete the sale within a certain amount of time, otherwise they have lost their rights to purchase. The main purpose of this agreement is to protect buyers from any unforeseen circumstances that come up between signing the contract and completing it.
If you want information about how auctions work in England read our guide here .
Steps to selling your home through auction
1. Write down a guide price for your property. This is the amount that you think your home is worth, but this can be revised as you go along. Think about what the market is like in your area and make sure that you're looking at it from an unbiased standpoint.
2. Prepare your property beforehand, so that people know what they're getting into during the auction process. Be ready to bring buyers around at all times (even if you're not moving out) as this will increase their chance of winning. You may also want to bring extra furniture or fittings that you want taken away with the house, so that buyers don't feel the need to buy these afterwards.
3. The process starts with a pre-auction meeting where interested potential buyers will be introduced to your agent and bid listing is done. Every buyer will be given a video which explains what they can expect at the auction and some of them may become serious bidders at this point.
4. You set the sale date, time and location and it will be advertised on your property's website first. Notice of the auction will then be published in newspapers and online to attract more bidders. You'll have to confirm the sale date with your buyers, who may ask you if they can change anything along the way. If you don't agree to this, just make sure it's written down in your contract.
5. Bidders take their seats and an auctioneer will start the bidding with a reserve price (the lowest amount that you would accept). The highest bidder wins and is then given a chance to raise their bid or pass on their rights to purchase.
6. The highest bidder wins as long as they can pay within a certain amount of time or secure a loan for it. If they can't, then the next highest bidder is given the chance to raise their bid or win. This continues until the reserve price is met.
7. The property will then be sold in less than a minute and you should get paid for it straight away without having to do any work on your end. Any surplus will then go directly to you.
Selling your home through auction gets rid of the stress of selling a property as you'll get all of the money from an auction, which you won't in a traditional sale agreement or with a buyer's agent. For more information about how to sell your home through auction read our blog here .
(Note, this article was originally written in 2013)
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Conclusion
So, as you can see there are a number of benefits to selling your property through auction. There's no risk of losing money, since you'll get all of the money straight away. You don't have to do any work outside of paying the property off, besides warning people that it's up for sale. And you'll be able to sell it at the best possible price because there won't be anyone else competing against you.
Of course, auctions are not for everyone and they take a lot more time to complete than a traditional sale agreement, as well as taking place together with more parties involved.