How To Make a Quick Sale

We are all being told that it is a buyers market, but what if you are on the other end of the stick and are trying to sell?

If you are trying to sell, then you may be struggling and with the current selling time averaging at 11 weeks according to Hometrack and only meeting 90% of the asking price you are probably asking yourself ‘what are my options?’.

The housing market is seeing many people finding the perfect house for them and then losing it because the sale on their home is taking too long.

There is a way to speed up the selling process and it is by no means ‘the answer’ but it is an option and all options should be considered.

An option that a few sellers are considering at the moment is selling your property by auction. Many would see an auction as a last resort but these days many are opting for auctions instead of going through an estate agent.

When you sell at an auction there are two major benefits. The first benefit is that there is no ‘subject to contract’, because you exchange legally binding contracts there and then. There is a 10% deposit that is paid on the day and then completion takes place around 28 days later.

This means that there is no risk of a buyer low balling you later and if they do decide to pull out, you can keep their 10%. This means that there is a much more reduced risk of a sale falling through.

Selling at auction can take as little as 6 to 8 weeks from calling to auction house to completion, which means that you can plan more, which in today’s market is impossible.

Selling at auction means that you also have access to a wider audience and they will do the marketing for you. The marketing that an auctioneer will do is often more effective than the way that an estate agent markets your home, as they generally have more people on their books than an estate agent. Again, the people who are engaged with an auction house are also often active investors, so the audience that your home details reach are well qualified and engaged.

The main reason for selling at auction should be the quick sale time. Auctions suit those who are perhaps moving abroad or have found their ideal property to buy and need to sell theirs in order to secure the house. Auctions are also used by those who have fallen into arrears.

The pitfalls with an auction are that if you do not sell your home you could waste your entry fee, which is anywhere between £300 and £500 and any legal fees.

Another draw back is that you don’t know how much your property will go for and it could go for under the market value, or it could go for more. It is entirely down to the demand on that day. You can set a reserve price, so if that is not met you don’t sell. The auction house will recommend a price to you, but be aware that if you set it too high you stab yourself in the back before you have started.

The auction house will also take a percentage, which is usually up to 2.5%, but this figure is very much negotiable and it is worth shopping around and getting to know your auctioneers.

You can sell any type of property at auction, but those that need modernising are usually better placed here as the audience is often developers and those who want to add value to a property.

Often properties that are unusual or have special convenants are sold at auction too. The idea with an auction is that the buyer will often get a discount or a find, so if your home falls into that bracket, then an auction could be the way to go.

When you look at choosing your time to sell and finding the right auction house, it is well worth considering the buying patterns of the UK. Summer is a bad time to try and sell, as a lot of people are holidaying. When you are choosing an auction house, shop around and make contacts. Don’t just go with someone that is cheap, as they might not give you the service and help that you require. Look at the type of audience, the figures, the brochure and how they are going to dress up your home. If an auction house sells similar homes to your, then they are likely to attract the right sort of buyers.

Just do your research and you will be fine. Shop around and pay the auction house a visit and see how they work and you never know you could be in your new home before you know it.