If you are considering selling your house at auction then you may be surprised to learn that there is actually an alternative that could prove to be more attractive and a lot easier.
Choosing the right auction house
Finding a suitable auction house to sell your property is important. Do you choose a local or national house auction? Are the properties at this auction house similar in value? Who are the buyers who buy auction properties for sale and what are they looking for when they do buy? All of these questions are vital in determining where you property will achieve the highest price.
As a general rule, local house auctions tend to include lower value properties whilst national house auctions companies tend to have more premium properties for sale. Either way it is all about getting the most targeted exposure for your property from a house auction.
After all, the number of prospective buyers in the database of a particular auction house is of little significance if they are principally looking for dilapidated properties to renovate and you have a high-end property to sell. What’s more, the marketing costs and auction entry fees are likely to correlate with the size of the audience the auction house can reach.
Often, however, it is not just a case of whether the auction house operates nationally or in the local area. It is important to research the reputation of each individual auction house to establish the size and the kind of reach they achieve.
Choosing a house auctioneer
House auctioneers usually take a 2.5% commission of the sale price of your property . Another point of note is that they often provide much more than a suggestion with regards to the reserve price, refusing to auction properties with a reserve price they consider to be too high.
The reserve price being the lowest value the property seller would be willing to accept. It is important to get the price right as once a property is entered and the reserve price is met there is no going back.
The guide price also needs to be chosen. This is usually set below the market value so to attract as many property buyers as possible.
Preparing for house auction
As has been mentioned, the house seller is required to pay a marketing fee that ensures the property is advertised in the auction house brochure and any other channel they use to reach their clientele.
Like the market, any interested and diligent buyers may want to come and view the property prior to the auction and may even make you an offer as-well.
Solicitors will also be required to prepare legal documents prior to the house auction alongside being in attendance on the day of the auction.
House Auction day
All you can really do at this point is hope that a number of interested property buyers attend and bid, and in turn, up the price. Even though you do not have to attend, National Homebuyers would suggest that you do, if only to soak up the buzzing atmosphere and let your hair down a bit, if that is your thing of course!
If you are still unsure about selling your house at auction, then we don’t blame you. There are numerous risks involved that could leave you regretting your decision and there is the possibility of selling your property for a minimal sum. One alternative is to let National Homebuyers buy your house for cash fast within 30 days. We buy any house, in any condition, anywhere in the UK.
Alternatives to House Auctions
Here at National Homebuyers we believe we provide a more efficient and fairer solution if you are looking to sell your house fast.
Below, there is a comparison of the speed and ease of selling a house using a house buying company likes ours or a property auction.
Sell Your house in 30 days without the need of a house auction
Firstly, there is the speed. National Homebuyers are not only quicker then selling your house at auction, but are also more flexible, with the settlement completion date being tailored to the need or want of the seller. If they want to arrange for the sale to be completed the day before their moving-in date for their next property, for example, this is easily arranged. However if you sell your house at auction you do not have this freedom. On the other hand, the time it takes after the gavel falls, which is usually around a month, is non-negotiable and can ultimately lead to frustration.
What’s more, it takes considerable time and effort just to find the right auction house for your property. Do you choose a local or national house auction company? Are the properties at the auction house similar to mine? Or is this auction house for more dilapidated properties where the buyers are interested in renovating?
Then there is the time the auction house will want to market your property and the time it takes for a house auction date to actually come around. These are all things that need to be carefully considered before you selling your home at auction.
So if you are in need of an alternative to selling your house at auction then get in contact with National Homebuyers who will buy your house for cash quickly.
We buy any property in any condition
Secondly, and although this is true for all platforms, properties that do well at auctions are those that are high-standard and with small mortgages. It seems so obvious that it is hardly worth a mention, but it is important with respect to the reserve price.
Auctioneers, in fact, offer much more than just a suggestion when it comes to the reserve price of a house and will refuse to include properties in an auction that have a reserve price they consider to be too high.
The main contributing factor being the size of the mortgage in relation to the value of the property. To give you a sense of perspective, the guide price is usually set below the market-value in an attempt to attract bidders so the seller must presumably be willing to accept a reserve price that is significantly lower than market value.
High Selling Costs for House Auctions
Thirdly, whilst it is true that National Homebuyers’ offers will also be below market value, it is worth taking into account the costs of selling at auction.
The auctioneer will usually take around 2.5% of the sale, but this can be as much as 4%. There are also additional costs for marketing the property and the auction entrance fee that is levied regardless of whether or not a sale is made.
Finally, there are the solicitor fees. We did our best to find out an average of what these may be but it really does depend on the solicitor. What we do know is that they will need to prepare legal documents prior to the auction as well as being in attendance on the day of the auction.
Obviously we wouldn’t be a true competitor if we did not highlight the fact that they can be exorbitant and repeatedly required in the event that the property does not sell.
As you might expect, despite being a property auction it is still good practice for potential buyers to view and have the property surveyed prior to the auction so to avoid any unwelcome surprises post-purchase. This, again, will vary.
National Homebuyers: The faster alternative to selling a house at auction
To conclude, we hope to have highlighted the fact that National Homebuyers provide a faster, easier and better solution for those looking to sell their house quickly. Not only do we guarantee to purchase your property, our offers are made on an individual and no obligation basis.
When buying a house we pay up to £1000 of your legal expenses and work to a completion date that suits you. We have helped many people sell their house fast for cash, just take a look at our National Homebuyers reviews for yourself.
If you are interested in an alternative to selling your house at auction and getting a cash offer for your property, get in touch either via the contact form on the right hand side, using the telephone number at the top of the page or by requesting a call back.
We buy any house for cash, regardless of its condition so if you need a quick house sale them contact us today for a fast, no obligation valuation of your home.