The Advantages of Sale by Auction
Auction is a popular way to sell a house in United Kingdom, as you may know that TV programs such as Homes Under the Hammer brought Auction sales into your living room. Auctioneers and auction houses tend to sell large volumes of distressed stock from motivated sellers usually facing financial problems or personal issues.
Auction sold prices vary widely and timing and luck has a big part to play. Exchange of contracts is done on the day with the fall of the gavel, thereafter completion can occur in 28 days. If the buyer defaults and fails to complete transaction, the sale falls through and you can end up with an aborted sale.
Disadvantages of Sale by Auction House
When selling a home at an auction, you’ll be subject to upfront costs like entry fees, legal fees, solicitor’s legal packs costs, searches and EPC. Typically, costs can be around £1,000 +VAT before auctioneers’ selling commissions of around 2.5% +VAT or around £2,500 +VAT if on a fixed fee. You have to wait 4 weeks before auction occurs for advertising and viewings and another 4 weeks after the auction to get your cash – if it sells and assuming the buyer completes on time. There is no guarantee of a sale.
It’s also a complicated process with lots of new terminology you will need to be educated about. For example, is it a traditional auction, conditional or the modern auction method? And who should you choose as an auctioneer: a local auctioneer or regional auctioneer?
Failed to Sell by Auction
Common outcomes of an auction are a failed sale, unsold, withdrawn, no bids or failed to reach reserve. You can avoid the upfront costs, time delays in cataloguing for auction and uncertainty of selling by choosing to sell instantly instead.
Guaranteed Way to Sell a House
Sell your house fast by getting a free instant offer from Sell by Auction. There’s no uncertainty, fees or risk when you sell your house for cash. Plus, we can arrange to complete the house sale in as little as 5 days!