Selling your property through an auction can bring about great results, as long as you go about it the right way.
The potential benefits from selling property at auction depend on your situation. If you must sell by a certain deadline or require a definite sell, you may benefit from a property auction as approximately a third of ‘conventional’ property sales tend to collapse.
Property auctions seem to attract people who are specifically after a renovation project. So if your property is run down, selling at auction may be a suitable option for you.
Property auctioneers vary in terms of fees, reputation and approach. It’s best that you speak to several auctioneers and choose one that you feel most comfortable with. It’s also worth checking their advertising catalogues to get an idea of the standard of their publications as this reflects the overall quality of the company.
Opting for an established company will mean your property is viewable to a higher number of potential buyers. This also means that there will be more options available to them and other properties for your property to compete with.
The main advantages of a property auction sale are:
- Increased popularity - With property auctions becoming more and more popular, the increase in demand for auction properties can lead to prices being driven higher, especially in competitive auction environments.
- Quick sell – If you are looking for a quick sell you could opt for an auction. Selling a house by Private Treaty usually takes anything from 4-12 months, whereas an exchange of contract through auction can take as little as 5 weeks.
- Intense Market Exposure - The whole auctioning process is, in the context of the property trade, short and intense. So given an experienced and reputable auctioneer, your property will get a lot of exposure to potential buyers through daily local newspaper advertisements and national publications geared especially towards investors and the like. In recent years, the web has also been used to attract buyers.
- Continuity of tenancy rental income – You can still receive tenancy rent after the property has been sold until their contract is over, upon which the purchaser will then have the rights to the property.
For a full list of the benefits of selling your property at auction it is recommended you speak to an expert.
Tips for auction success:
- Allow as many viewings and open days as possible since this is valued among prospective buyers.
- An effective marketing campaign goes a long way. Sign up to a property auction company that distributes catalogues to their mailing list. Greater exposure means a better chance of selling and selling at a higher price.
- Be prepared to answer questions just before bidding takes place since this is standard practice in most auction rooms.