The Benefits of Selling Property at Auction
While selling through an estate agent is a popular method, it can end up being a long wait before completion and even then, there’s the risk that a sale could fall through.
We’ve created this guide to take you through the benefits of selling at auction. If you would like more information on the process or would like to discuss a specific property you’re looking to sell please contact us.
Advantages of selling property at auction
Certainty of sale
Once bidding has closed on the fall of the gavel, a binding legal contract is formed between you and the successful bidder. This means they can’t change their mind without financial and legal penalties. The buyer has to put down the 10% deposit on auction day and pay the remaining 90% within 20 to 30 days.
Whereas when selling using the private treaty method, there is the risk of the sale falling through due to buyers backing out, communication issues, gazundering or property chain problems.
Access to a wide range of buyers
One of the top benefits of auctioning a property for sellers is immediate access to a wide range of buyers thanks to Allsop’s wide database of cash buyers constantly on the lookout for opportunities. If there’s strong interest in your property, then a ‘bidding war’ may see you get a much higher price than expected.
A lot of people who decide to sell at auction do so because of how much faster the process is compared to the private treaty route. Once your property has sold at auction, contracts are exchanged immediately, with completion taking place over the following four to eight weeks. This makes auction a great option if you need to sell fast.
As much as it is a benefit for potential buyers, having a transparent bidding process is advantageous for the seller too, as the best possible price is achieved in open competition. The seller is also able to see the interest in their property, who is bidding, and how much.
If you have more than one property that you’re looking to sell, you can list multiple properties in an auction and see them sold on the same day. If there is a portfolio of properties to be sold, they can be spread over several auctions to achieve the seller’s objectives.
Whether it’s listing properties on major property search portals, using targeted and direct marketing or running advertising campaigns, Allsop will promote your property ahead of auction across multiple channels.
To find out more about the way we use marketing here at Allsop, head over to How to Sell Property at Auction.
What to consider when selling at auction
Of course, alongside the benefits there are a few other things to consider if you’re looking to sell at auction:
Setting a reserve price
Before you sell your property, you’ll need to set a reserve price, which is the lowest amount you’d accept. Sellers and auctioneers have no control over the final price of the asset which is determined by the highest bidder and can’t be changed once the gavel has fallen, so it’s important to seriously consider pricing ahead of the sale. Our experienced team will help you decide the most suitable reserve price.
No guarantee of selling
It’s important to remember that when you go to auction, there’s always the chance that your property might not sell. Of course, we will let you know whether your property is suitable for auction and market it appropriately, but this doesn’t guarantee a sale.
Allsop has an average success rate of over 80%, but if your property doesn’t sell the first time round, don’t be disheartened – buyers are able to purchase remaining lots after the auction. Available lots will be displayed on our website and we will contact all previously interested parties to invite best bids.
There are some extra costs that you’ll have to consider when it comes to selling property at auction that you won’t get with estate agents. This includes an entry fee, auctioneers’ commission as well as solicitors’ fees.
Why sell your property at auction with Allsop?
Allsop is the UK’s leading auctioneer of commercial and residential property. We have the people, depth of experience and reputation necessary to hold well-attended auction sales.
- Considered advice - We always consider whether a property is suitable for sale by auction or private treaty. Allsop offers both methods of disposal
- Wide market exposure - As part of our intensive marketing and PR campaigns, we promote your property to our large databases of potential buyers
- Experience & service - Allsop has been synonymous with property auctions for over 100 years. Our auctioneers are amongst the most experienced and respected in the industry. We offer a streamlined service aimed at securing the best possible price for your property with the minimal amount of stress
- We achieve results - We consistently sell over 80% of all properties entered into our auctions
Now you know all about the benefits of auctioning a property, read our Auction Insights for even more property inspiration.