Selling through auction has always been a popular alternative to going through an estate agent, and tens of thousands of residential properties are sold at auction in the UK every year. There are many merits of the unique process of selling at auction and many motivations that make sellers flock to this option. In this blog, we’ll delve into the reasons why properties go to auction in the UK and explore the benefits of this method for both sellers and buyers.
Speedy and Certainty of the Sales Process
One of the primary reasons sellers prefer auction is the efficient way in which sales are completed. Everything about auctions is speedy; the auction takes place a few weeks after the full catalogue drops, contracts are exchanged on auction day, then it’s only 28 days until the whole process is completed. Online auctions have made the auction process easier than ever, allowing you to buy and sell at the click of a button. The sale is legally binding which is a far more secure option than private treaty, where the process can on with no guarantee. All of this is a big attraction for sellers and buyers alike.
Broad Marketing Reach
Property auctions have an incredibly wide and varied reach as each auction is comprised of properties nationwide. This means sellers have the opportunity to showcase their properties to a far larger number of potential buyers. Auction houses also employ comprehensive marketing strategies, including emails, newsletters, and social media, to attract interest parties from a loyal client base who are always eager to find their next sale.
“Auction sales are legally binding which is a far more secure option than private treaty, where the process can on with no guarantee.”
Avoids Difficulty with Mortgages
It can be difficult to sell a property through private treaty when it seems unlikely to be approved of a mortgage, but these properties are frequently snapped up at auction. Reasons why a property might not qualify for a mortgage are; if the property is uninhabitable, at risk of depreciation, flood risks, the property has a short lease, or if there are planning issues. Investors looking for a fixer upper or a new project are actively seeking these types of properties at auction, meaning they will thrive at auction.
Perfect Place for Unconventional Properties
Properties with unique features or unconventional layouts may struggle to attract buyers through traditional sales channels. Auctions offer a platform for these types of properties to a niche audience of buyers in their database who may appreciate their distinctiveness and be willing to pay a premium for them. From historic buildings to quirky conversions, auctions cater to a diverse range of property preferences and tastes.
Property auctions open a far wider range of options for properties that might otherwise not be successful through other means, unlocking their true potential, and the speed, ease and certainty make it attractive for both sellers and buyers alike.
