There are many misconceptions around selling and buying properties at auction, so we thought we would set the record straight on some of the assumptions we encounter most regularly.
'Only problem properties come to auction'
This is absolutely not the case. A wide range of different properties come to auction. It can be circumstantial, depending on what the vendors requirements are, they made need a quick sale and that is what auction can deliver through a four week completion period.
On the other hand, some vendors are aware that best value can be achieved at auction. They want to create that competitive bidding around their property on the day of the auction, resulting in getting the best price.
A small proportion of stock that comes to auction have structural issues or are un-mortgageable. The best place for these properties is auction as there are cash buyers who do not typically rely on any lending to purchase the property.
'I won’t get the best price for my property'
Best price is often achieved at auction. You have to trust the system when it comes to getting the best price for your property at auction. The property will be guided at a price that is lower than the market value, enticing interest and it is through the competitive bidding environment that the value will be increase.
You will be protected by the reserve price which sits within the guide price, which is the minimum the property can be sold for.
'Auctions are only for cash buyers'
You do not need to be a cash buyer to buy at auction. There are a significant amount of successful buyers at auction needing to take out financing to assist in the acquisition of a property and there are ways to work around this, such as bridging loans.
'Selling at auction is expensive'
Selling at auction can be more expensive than traditional private treaty, but it doesn’t have to be. Typically, the auction selling fee is higher than that of an estate agent, but that cost can be offset through the special conditions of sale. For example, the buyer could be asked to contribute to a proportion of your sellers fees.
'My home won’t sell because it’s not marketed as widely'
Your home will be marketed as widely as other properties and beyond that. Not only are we across all the main online property portals and we also actively market through our own website. We have a print catalogue that we distribute to a list of active buyers and we also carry out marketing campaigns on social media platforms. We cover all bases.
Did any of these surprise you?