A seller might get less for their property and a buyer forfeits their right to change their mind but property auctions offer speed, certainty and a level of security, that is impossible to achieve when you buy or sell a house through an estate agent.
Property Expert Series: Andy Thompson From SDL Auctions
- Introducing Andy Thompson from SDL Auctions
- What Steps Should I Take Before I Buy A Property At Auction?
- How Do Property Auctions Work?
- What Is A Reserve Price?
- What Exactly Is In The Legal Pack?
- Are Property Auctions Better For Buyers Or For Sellers?
- An Introduction To Buying BMV Property At Auction
- What Is Off The Wall Bidding?
- Property Auctions – Does It Matter Where I Sit?
- Auctions Fees | What Are The Costs To Buyers And Sellers?
- How Do I Prepare For A Day At House Auction?
- Are Auction Properties More Commonly Vacant Or Tenanted?
- What Are The Risks When Buying A Property At Auction?
- How to Find and Work With Good Property Auction Houses
Are Property Auctions Best For Buyers Or For Sellers?
Amy: So we’ve talked a little bit about buying at auction and I’m also really interested to know about selling at auction, too. Are auctions best to buy or best to sell?
Andy: For me, auctions are circumstantial. So, an auction won’t suit every buyer and it won’t suit every seller. There are pros and cons to both sides.
But there’s a big fear of the unknown from both buyers and from sellers. So, a lot of sellers think that they’d be giving the property away, for example, so they won’t bother to look at it.
A lot of buyers think that they’ll lose their deposit if anything goes wrong. It’s that fear of the unknown.
The best way to explain it is there’s no under-offer period. So, it literally goes from for-sale to sold.
So, if you imagine a property on the open market – you’re selling it. You’re on-call all the time waiting for somebody to ring you to say we’ve got a viewing. Somebody views it, makes you an offer. You think it’s sold and then anything could happen between then and probably three months before actually does sell.
Security and Certainty At Auction
Andy: When you buy or sell through an estate agent the other party can change their mind. They might try and renegotiate.
So, You might have all your boxes packed, ready to move and the day before you’re due to move, the buyer comes and drops the price.
So, selling at auction gets rid of that worry. It’s a much securer way to sell a property and you can work with your dates. For example, you know the auctions on the first of July, you’ll get your money on the 20th of July. There is a certainty there.
Auctions are also a fantastic way to sell properties that need a bit of work. So it’s really popular with people who might have inherited a property that needs updating.
But, like I say, it’s the security and the speed that will appeal to a seller.
You might not get the same price you would do if it’s with an estate agent. You might well do but often you’ll get – you’ll probably be slightly shy of what you would do with an estate agent.
So it’s a question of whether your biggest motivation is getting the maximum price or that speed and security.
Amy: Absolutely, sounds great.
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