Many myths surround auctions, but they are a good means of enjoying a bargain or snapping up a property quickly. Auctions used to be mostly favoured by buyers with cash as well as investors. Now, however, people from many different backgrounds purchase properties at auction.
Are auctions only for those needing a fast sale?
If you want to sell your home and obtain the cash sum quickly, then an auction is an option. However, if you are not rushing to sell and prefer the solid process of a secure sale, then an auction is also for you. The competitive bids can also push the price up so you can be assured of a good figure.
Do auctions only handle run-down properties that require renovation?
There are numerous property shows on television, some dealing with auction lots and many seem run-down and tired. However, it’s important to understand that any type of property can be sold at an auction. The secret is setting the correct price and marketing and auctioning it to the right people. An auction can deal with high value or luxury homes, to modern properties for the family and ‘fixer-uppers’.
How much will it cost to sell at a property auction?
There are no large fees incurred when selling at an auction. There are two different avenues that you can take. Some auction businesses charge the seller a certain percentage commission of the final price, which is only paid if the property is sold. It is, however, becoming common not to charge the vendor and to only charge the property buyer. When the homebuyer pays the auctioneer’s commission, this is known as the ‘buyer’s premium’, which can be anything from three per cent plus VAT to five per cent plus VAT, depending on the value of the home and its location.
Will my property sell for less at an auction?
You will receive the price you want for your home, regardless of the selling process. At an auction, you can set the reserve price and the auctioneer won’t let the property go for any less. You could even make more money on the property by selling at auction, than you would have done through an estate agent. If you are keen to purchase at an auction, then Ascot solicitors and those elsewhere are on hand to take care of the legal aspects of the process. Firms such as https://www.parachutelaw.co.uk/ are experienced professionals who can take the pressure off the purchase. Legal professionals do have to be involved in conveyancing whether you are selling through an estate agent or at an auction.
The Blackpool Gazette states that auctions can be a great way of selling. According to the article, each year around two per cent of property sales are completed via auction. It also notes that if you do decide to sell at auction, then the process takes four to eight weeks, compared with roughly six months to sell through an estate agent.
Do I have to be a cash buyer?
If you wish, you can provide the cash upfront for a home at an auction. You may also wish to take out a bridging loan or even arrange a mortgage in advance. An auction is no longer the sole preserve of cash buyers.
