Have you ever considered the option to Sell your property by Auction? It’s quite common for people to envisage a room full of people shouting over each other and an auctioneer stood at the front with a wooden hammer! But, there is a very modern way of selling by Auction now. One that is not just reserved for specific property types that cannot be sold by other means.
Skilton & Hogg Estate Agents can now offer you the option of selling your Daventry or Rugby property (or any where in Warwickshire & Northamptonshire) by Online Auction. This option offers a raft of benefits to you, the seller.
Why Sell at Auction?
In property sales, most homes are sold via what we call ‘private treaty’. You market your home with an Estate Agent, find a buyer and start the legal process. However, nothing is legally binding until an exchange of contracts which happens at the end of the process. The timescales taken on average are in the region of 16 to 20 weeks or 4 to 5 months!
So security of sale is minimal at best. Particularly when roughly 34% of sales fall through, usually by a buyer withdrawing from the agreement.
Private treaty is good for general property types and especially if there are other sellers and buyers involved in the chain. You need to be amenable and adaptable to other buyers and sellers and timescales that they need to work to.
Alternatively, if you are selling with no chain, want a 99.9% secure transaction, low fee/cost solution and want a completion quickly, read on….
The benefits of Auction
- Secure Sale – With both types of auction (explained below) you can be assured of a secure sale. With one type (Traditional) the exchange of contracts happens when the timer hits zero. Your buyer is legally committed and a completion takes place shortly after (within 20 working days). With the second type of Auction (conditional) and at the end of the timer, your buyer pays a reservation fee meaning they are financially committed. Exchange & completion takes place within an agreed timeframe. The second option allows for mortgages to be used to purchase.
- Certainty – because the exchange cost or reservation fees are paid immediately, the buyer is committed at the point of the sale being agreed. Not at the end of the whole process like in a private treaty sale.
- Speed – Subject to when the legal pack is available, you could be on the market, under offer and exchanged/completed within 4 to 5 weeks or even sooner!
- Best Value – That’s right, Auctions are not all about cheap property. Auctions test the market thoroughly meaning that the price obtained can be seen as the best price at that point in time. The bids are public domain so buyers will compete. However, if a good offer is made, you don’t have to wait for the Auction timer to end. You can accept.
- All property types – If you are selling without an onward chain (linked property purchase), any type of home can be sold with this style of selling. Obviously, hard to sell homes, particularly ones that cannot be mortgaged are perfect for a traditional auction.
- No selling Fee’s – Yes, there are legal fees (legal pack and legal transaction/conveyancer costs) but as a buyer pay’s reservation fee’s to secure, you do not pay.
Types of Online Auction
Conditional Auctions –
Selling your home by conditional auction provides you with a faster transaction and more certainty. Your sale will be significantly less likely to fall through and there is a lower risk of your buyer trying to renegotiate the price. This means a quicker and more secure process for you at no extra cost. You can set a ‘Reserve Price’ which is your financial safety net. This means you will never sell your home for less than the minimum price that you have set.
Traditional Auction –
Selling your home by traditional auction provides you with a faster and more certain transaction. At the end of the auction, when the timer reaches zero you will have an immediate exchange of contracts. With this immediate exchange of contracts, you benefit from the certainty that the buyer is legally committed to purchase your property and unable to withdraw from the sale or renegotiate the price. This means a quicker and more secure process for you at no extra cost. You can set a ‘Reserve Price’ which is your financial safety net. This means you will never sell your home for less than the minimum price that you have set.
Daventry & Rugby Online Auction
Are you looking to sell your property by Auction in Daventry, Rugby, Coventry, Nuneaton, Bedworth or anywhere in-between? Skilton & Hogg can help you. Below are a few scenarios which would benefit from the modern auction process :-
Property with Structural defects (non-mortgageable)
Any property struggling to get a mortgage
Property that needs to be sold quickly and securely
Property with no onward chain
Unique property that is difficult to value
Property under probate (granted)
Any property where best value needs to be determined for legal reasons
So, if you are looking to sell you property by Auction and need a fast, secure and effective way to achieve that goal then do not hesitate to contact David Bruckert on 01327 624275 or 01788 486100. You can email dbruckert@skiltonandhogghomes.co.uk.
