Selling a problem property by Auction

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11 Jun 2018

Selling a problem property by Auction

Author: Simon Clayton

Some properties can be difficult to sell, however Romans, unlike the majority of estate agents, have an alternative solution to the problem. Selling property in the current climate can be frustrating and many sellers feel like they have no option to but to wait weeks or months until a buyer comes along and then may still have to wait several months for the sale to exchange. However, Romans’ Auctioneer and Director, Simon Clayton discusses how selling at auction can help solve your problem.….

Power of attorney

When selling property for a relative to pay for their care using power of attorney, many find that auctions are the best method thanks to the fast completion times and certainty of sale.

Simon comments; “We are seeing more and more vendors needing to fund their parents or family members’ care through selling their property via auction. With many of the properties requiring modernisation, a fast sale or, often both - auction is a much better fit than traditional sale where buyers expect a higher standard of property and timescales are often longer.”

Requires renovation or modernisation

If the property you are selling is dated or requires some renovation work, you may find you have more success selling via auction. Typically banks and lenders won’t provide a mortgage against a house that is not is a habitable condition and so many of these properties end up in an auction room. At auction, properties requiring renovation prove popular with investors who are willing to do-up property in order to resell or let for a profit.

Let investment

Whilst not always a problem, if you have  existing tenants living in the property, it can make your property harder to sell due to a more limited market and so many landlords choose to sell their property via auction to other investors looking to gain a new property and stream of income.

Settling an estate

If you are an Executor selling the property as part of a probate sale, you may find selling through auction easier than selling via traditional sale. Not only does selling via auction help you demonstrate that the best price has been achieved in a transparent environment, you also have the added benefit of a speedy sales process.

Need for speed

Unlike traditional sale, auction sales complete just 20 business days after the auction. On the day of the auction you have the certainty that contracts are legally exchanged at the fall of the auctioneer’s gavel. Compared with traditional sale, there is a great deal more security that the sale will not fall through.

Structural problems

If your property has any structural problems such as subsidence, uneven floors, bulging walls and cracks, which have worsened over time you may struggle to sell. However, many savvy investors recognise that structural problems are often minor and once the repair bill has been paid, there a plenty of returns to be made by either renting or selling the property.

Simon explains: “Auctions are a great method of sale for all types of properties although some are more suited to the process than others. We find that many of our customers find auction the best method due to a combination of their personal circumstances and the condition of the property.”

To find out whether your property would be suitable to sell by auction, get in touch with Simon and his team on 01344 988 728.

 

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