Property auctions have become increasingly popular among sellers seeking alternatives to traditional estate agent sales. Their appeal lies in the potential for quick completions and competitive bidding, though they also come with unique challenges and considerations.
What does it mean to sell property at auction?
When selling at auction, your property is marketed to potential buyers before being offered for sale in a competitive bidding environment. There are two main approaches:
Traditional auctions
Properties are sold to the highest bidder in a live setting. When the hammer falls, contracts exchange immediately and the buyer must pay a deposit (around 10%), with the remaining balance due shortly after (normally within 28 days). It’s a legally binding sale on auction day. These auctions are normally hybrid with many bidders attending virtually these days, either by video or telephone.
BidX1
A BidX1 auction is an online property auction where buyers can bid on properties through a fully digital process, with all bids displayed in real-time, allowing for transparent bidding and immediate contract exchange on the auction day. The bidding happens over a 1 – 2 hour time slot.
Modern method of auction
There’s a newer approach that uses online platforms where buyers can bid over several days. It typically offers more flexibility with longer completion timelines and sometimes allows for conditional sales, making it accessible to mortgage buyers. If you like the sound of this one, it’s what we at Property Rescue offer, so get in touch.
The pros of selling property at auction
Quick sale process
Traditional property auctions typically complete within weeks and much faster than estate agent sales. Property Rescue’s modern auction service maintains this speed advantage while offering more flexibility and control. The auction platform we partner with combines competitive bidding with a streamlined process, giving you the best of both worlds.
Certainty of sale
Regular auctions rely on buyers paying deposits, but sales can still collapse. At Property Rescue, our non-refundable deposit system creates committed buyers, with less than 1% of auction sales falling through.
Competitive bidding for best price
Auctions can create competitive environments where multiple interested buyers drive up the final sale price, which is particularly helpful for unique properties that might attract passionate buyers.
Transparency
All bids are public, whether in person or online, ensuring a fair process where everyone can see exactly what others are willing to pay.
Suitable for unique properties
Properties with unusual features, those needing renovation or homes with short leases often perform better at auction than on the open market, attracting developers and investors who understand their potential.
The cons of selling property at auction
Uncertainty of final price
Traditional auctions leave your final sale price to chance. Even with competitive bidding, you might not get what you want. At Property Rescue, we remove this risk by agreeing your minimum price upfront, so you have a safety net before bidding starts.
Higher costs
Regular auctions charge hefty fees for listing, marketing and legal work. This is true even if your property doesn’t sell. At Property Rescue, we cover all these costs ourselves and charge zero sales commission, meaning you keep more of your property’s value.
Extensive preparation required
You’ll need a comprehensive legal pack prepared before the auction, including all property searches, title deeds and lease information. This all takes time and money to prepare.
Limited buyer pool
Many potential buyers aren’t comfortable with auctions or can’t meet the quick completion deadlines. There may be less competition, particularly for properties that might appeal to mortgage buyers.
How Property Rescue simplifies the auction process
Selling your property via auction with Property Rescue offers a range of benefits, and we simplify the entire process so you can focus on getting the best sale for your home.
- The auction process typically completes within 28 days to eight weeks after the auction ends, which is faster than traditional estate agent sales. Through our auction partnership, you get the speed of a traditional auction with added flexibility on completion dates to suit your timeline.
- While regular auctions charge listing fees and legal costs before the auction, we cover everything. There’s no commission to pay either – as it’s only paid by the buyer.
- Traditional sales often collapse due to complex chains and buyer withdrawals. Our non-refundable deposit system means less than 1% of sales fall through, giving you complete peace of mind.
Is auctioning the right choice for you?
Understanding whether an auction suits your situation can save time and make the most of your chances of a successful sale.
Ideal scenarios for auction sales
Traditionally, auctions have been popular with sellers that needed a quick sale, or properties that required renovation or had unusual features that made it hard to sell through traditional routes. However, these days, with the popularity of online auctions, all types of property are suitable for auction regardless of the condition.
When to consider other options
If you want to be involved in negotiating the price, and have time to spare, then traditional estate agent sales might work better. Going down this route typically attracts a wider pool of buyers and could also achieve a higher price since your property would appeal to mortgage approved buyers, as opposed to the smaller pool of mostly cash buyers that are prevalent in auctions.
If you don’t have time to spare and maybe don’t like the uncertainty of an auction (since a sale is not guaranteed) you might consider going to a property buying company as an alternative. A property buying company will make you a direct cash offer for your home. And if you accept it, they will buy your house immediately. Property Rescue is a leading UK property buying company. If interested in this service, get your no obligation cash offer by clicking here.
While auctions offer speed and some degree of certainty, they’re not right for every seller or property. Success depends on choosing the right approach. Through our auction partnership, Property Rescue offer both the auction route as well as being the faster route where we buy your property directly from you for cash. If you’re not sure which one to choose, get in touch for a chat.