Selling a property by auction is fast, transparent and efficient. Not only do you benefit from the security of knowing that contracts are legally exchanges at the fall of the gavel, but you also have the peace of mind that you’ve got the best possible price thanks to the competitive environment of the auction room.
Despite the many benefits, this method for selling property is often overlooked by residential sellers simply because they don’t understand the process and believe many myths about the process.
Simon Clayton, Auctioneer and Director of Romans Auction Services dispels some of the most common myths…
Myth #1 – You get a lower price selling at auction vs. traditional sale
Of course, this varies on a case by case basis, but as sellers are able to set a reserve price, they never get less than what they think the property is worth. The competitive atmosphere of the auction room often leads to a sale price which is above both the reserve and in some cases significantly higher than what the property would sell for by a traditional sale.
Myth #2 – You can only buy or sell in the room
This is not true, yes, the majority of the sales do take place in the auction room, however many property purchases are made both before and after the auction. It is completely up to the seller if they wish to accept offers before or after the auction.
Myth #3 – Auctions are only for run down properties
This is not true at all, any property is suitable for sale by auction – the determining factor is often the seller’s personal circumstance rather than the condition of the property. Typically the deciding factor for whether or not to sell by auction is the speed at which completion is required – auctions have a 28 day completion deadline – so those needing to complete quickly may opt for auction regardless of the condition of their property.
Myth #4 – Auctions are only for property investors
A few decades ago, yes auctions were mostly used by property investors and cash buyers. But, times have changed, homeowners have become better educated on the auction process and today auctions are really popular. Subsequently we are now selling more and more auction properties to owner occupiers.
Myth #5 – Auctions only attract local buyers
Just because our auction house is based in Reading, it doesn’t mean our catalogue is restricted to the local area. In fact, thanks to our partnership with Leaders, our auction catalogue covers the whole of the South East. To see the areas we cover, go to romans.co.uk/auctions
If you are considering selling your property by auction and would like to find out more about the process, contact Romans auctions department on 01344 988 728 or visit romans.co.uk/auctions