Selling a property at auction can be a thrilling experience, offering a fast and effective route to a sale, particularly for unique homes, fixer-uppers, or properties that need to sell quickly. However, it's not quite the same as a traditional sale, so understanding what to expect is crucial.
Setting the Reserve Price: Before the auction, you'll agree on a reserve price—the minimum amount you're willing to accept. This figure remains confidential, and if bidding doesn't reach it, your property won't sell. It's a safety net ensuring you don't sell for less than you're comfortable with.
Preparing the Legal Pack: A solicitor will need to prepare a legal pack, including title documents, searches, and any relevant property information. Prospective buyers will review this in advance, so transparency is crucial. This step is vital for a smooth transaction and to avoid any last-minute surprises.
Marketing Before Auction Day: Your property will be marketed in the run-up to the auction to generate interest. This includes listing it in the auction catalogue and arranging open days for viewings. The more interest you generate, the better the chances of a successful sale.
Auction Day – Fast and Final: On auction day, bidding is fast-paced. If the reserve is met and the hammer falls, the sale is legally binding. The buyer pays a deposit immediately, and completion usually takes place within 28 days. This speed and certainty can be a big advantage.
Advantages of Auction: Auctions offer speed, certainty, and the potential for competitive bidding to drive the price higher. However, auction fees are typically higher than traditional sales, and if your property doesn't sell, you may still incur costs.
Selling at auction can be a powerful tool when time is of the essence or your property has niche appeal. With the right preparation, you could achieve a quick, successful sale under the hammer. If you're considering this route, why not reach out to us at Bond Residential? We're always here to help guide you through the process.
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