If you watch morning television, you’re probably aware of shows that follow people who snap up homes at an auction, do them up, and sell them at a profit!
It’s estimated that about 15,000 homes are sold at auction each year, accounting for one out of every fifty homes sold.
Selling your home at an auction can be an easy way to make money. However, like all ways of selling a property, it has pros and cons.
Join us as we look at if a property auction is the right choice for your needs, and if enlisting the help of a cash buyer (like Easy Sale) is a better option.
Advantages of selling a house at an auction
Here are some of the advantages that you may see if you sell your house at an auction.
You can sell quickly
One of the key benefits of selling your home by auction is that you can sell quickly. Once a sale is agreed upon, the buyer must complete the purchase within a particular timeframe.
This means you get your money faster!
You’re selling to the highest bidder
At a property auction, the home is awarded to the highest bidder. If there is a lot of interest in your home, for example, it’s in a desirable area or has many interesting features, you could see a lot of competition!
There’s no chain
A mismanaged property chain can sometimes lead to a house sale falling through. The good news is that a property auction means there is no chain to worry about, giving you that all-important piece of mind.
You can sell if your property is in poor condition
When you sell through an estate agent, you need to spend time making sure your property looks good and is appealing to prospective buyers. With an auction, this is less important.
Many people use auctions to specifically buy ‘fixer-upper’ properties that they can sell or rent. This means it doesn’t matter if your home needs a little extra work.
Disadvantages of selling a house at an auction
And here are some of the disadvantages that you get by selling your house through an auction.
You won’t get as much money
The main disadvantage of selling your property at an auction is that you won’t get as much money. Many people looking for a property in an auction want value for money, so you may be encouraged to offer a low reserve price to make a sale.
How much money can you sell your house for at an auction? It’s hard to say. Movewise advises that properties sell for 20% less than they would on the open market, although this depends on the specific property.
The auction house will also take a cut for its work. You’ll have to pay for your home to be auctioned, as well as pay a commission of between 2 to 3% if it sells.
You lose control
Some auction houses may insist on sole selling rights for a set amount of time. This means if your property doesn’t reach the reserve price, you can’t use another auction house or estate agent to sell the property on your behalf.
Always read the terms and conditions before you put your house up for auction.
There’s no guarantee you’ll make a sale
It’s estimated that about four out of five properties sell at auction. This means that success isn’t necessarily guaranteed.
If you’re holding out for a specific price or want to sell a house that isn’t desirable, you may be waiting a long time for a seller.
The alternative to selling your house at auction… Easy Sale!
As you can see, there are advantages and disadvantages to selling a property at auction. While some people see a quick and profitable sale, others don’t sell at all, or don’t sell for the amount they were expecting.
If this is the case, a cash buyer may be a better alternative. A cash buyer will assess your property and provide you with an offer. If you accept, you can exchange contracts within 48 hours.
At Easy Sale, there are no fees or hidden charges, and you can even get an interest-free cash advance!
With Easy Sale, you get a guaranteed sale regardless of the property you own, with no chain to worry about.
Contact us today and see just how much you can sell your home for.
