Learn more about selling a house at auction

When selling your house, there are various real estate selling options that you can adopt, including tender, private sale, and auction among other methods. Unlike private sale (which is based on an agreement between you and the buyer), when selling at auction, a reserve price is set before the sale (which is the lowest price that you are willing to sell the house). The house is then sold at the price quoted by the last bidder. This is the point that legal contracts are exchanged and all transactions are completed 28 days thereafter.

Learn more about selling a house at auction.


Why Would You Want To Sell Their House At Auction?


There are myriad circumstances that can prompt you to sell your property at auction. First off, if you have a rundown or unusual property that's a bit hard to sell to conventional buyers, auction is the best way to sell it considering that auctions are attended by industry experts who will quickly understand the value of your property. If you want to sell your house quickly or urgently, auction may be a good option. Provided that your price is realistic, your house will be sold by the end of the auction period.


selling a house at auction Pros and Cons


Pros


Bidding wars (where more than one person is interested in the property) can make you sell your house at a higher price that's far beyond your expectations


You will never be forced to take lower price if your reserve price isn't met. The house will simply be withdrawn from the auction and you have the liberty to list it later



Free marketing the auctioneer market the property on their website or catalogue which saves you from the hustle of looking for buyers for your house


Cons


The competitive nature of auction sales ( bidding process) may put off potential buyers


The price that you finally receive may not satisfy your expectations, and if it only goes beyond the reserve price, you may not be pleased (but you can't do anything)


Your solicitor must be present on the auction day, which means that you must be ready to pay for their time, travel, and other related costs for them to attend.


If you plan to sell your house, auction is a fast and great way option to do so. However, you have to decide whether it is the best method for you. If you need more advice on the best way to sell your house, feel free to consult your local real estate agent.