The advantages of Sale by Auction
An auction is a trendy way to sell a house, and Homes Under the Hammer brought sale by auction into your living room. Auctioneers and auction houses tend to sell large volumes of distressed stock from motivated sellers with financial problems or personal issues. Auction sold prices vary widely and luck has a big part to play. Exchange of contracts is done on the day with the fall of the gavel, so completion can occur in 28 days. If the buyer defaults and fails to complete, the sale falls through and you end up with an aborted sale.
Disadvantages of sale by auction house
When selling a home at auction, you’ll be subject to upfront costs like entry fees, legal fees, solicitor’s legal packs costs, searches and EPC. Typically, costs can be around £1,000+VAT before auctioneers’ selling commissions of around 2.5%+VAT or around £2,500+VAT if on a fixed fee. You have to wait 4 weeks before auction for advertising and viewings and another 4 weeks after the auction to get your cash – if it sells and assuming the buyer completes on time. There is no guarantee of a sale.
It’s also a complicated process with lots of new terminology you will need to be educated about. For example, is it a traditional auction, conditional or the modern auction method? And who should you choose as an auctioneer: a local auctioneer or regional auctioneer?
Failed to sell by auction
Common outcomes of an auction are a failed sale, unsold, withdrawn, no bids or failed to reach reserve.
You can avoid the upfront costs, time delays in cataloguing for auction and uncertainty of selling by choosing to sell to us instantly instead.
Guaranteed way to sell a house
Sell your house fast by getting a free instant offer from 365 Property Buyer. There’s no uncertainty, fees or risk when you sell your house for cash to us. Plus, we can complete the house sale in as little as 5 days!
