To Bid or Not to Bid- The Benefits of Buying and Selling at Auction

Posted on July 24th, 2020.

Selling property at Auction has fast become a means of a quick, decisive sale. The preconceived views of Auctioneers selling “problem or distressed property” as a last resort are fast disappearing. In the current marketplace sellers are seeing some excellent results, in this article we explore the key benefits.

    1. An auction creates, enquiry, engagement, and competition for a property in a short period of time. In many cases this achieves a premium price that may otherwise be unobtainable.
    2. The buyer has nothing to sell and is qualified to proceed.
    3. Viewing , mortgage and surveys can be arranged in advance of the property going into the Auction. When the hammer falls, the buyer is committed to pay the deposit and exchange contracts. The sale normally completes within 28 days of exchange of contracts.
    4. The process saves valuable time for the Seller. There are pre-qualified buyers who have done their homework that are ready to procced. This is a far more secure method that doesn’t leave you exposed to the bureaucracies of selling through an Estate Agent with the risk of buyers changing their mind once an offer is agreed.


    5. The transparency of the process means that there is a level playing field. Pre-Covid, buyers could see the other bidders in the room. Buyers can take some comfort in the fact they only have to bid a fraction above to secure the sale. This also cuts out the bad practice of gazumping.
    6. Auctions offer a greater choice of properties with wider exposure to the public. They are also the preferred method of purchase for overseas and domestic Investors.
    7. Auctions also give flexibility to buyers who cannot bid in person. Other methods include:

      By Proxy- The Auctioneer can bid on your behalf with written instructions on your limit.

      By Phone- The Auctioneer will call you and you can make a live bid.

      On-line- you can register to join, and an access code will be issued – your bid is live during the Auction.  

 

If you would like to know more about buying and selling at Auction or have specific questions relating to this article, get in touch with us here to see how an Auction might work for you.