Benefits of selling through auction

The world of real estate can be quite complex and downright confusing at times. It can be extremely difficult to wrap your head around the concepts associated with buying, selling, renting, mortgages and repayments. One of the questions we’re regularly asked is why a lot of individuals prefer to sell their homes through auction. Our aim in this article is to show you the benefits of selling through an auction. In addition, we hope to alleviate some of the pressure and clarify a few issues for you. Here is why this method of selling homes has been so popular in recent years:

Competition

One of the most unique features of an auction is that it can lead to auction fever. The objective of an auction is by far and large to create interest from at least two or more buyers. Subsequently, this will result in them bidding against each other. Sometimes this bidding processes can keep pushing the price of the property up until it goes above market value. Moreover, it is not unheard of for buyers to be so eager to acquire a property that they submit a pre-auction offer. If the buyer’s offer is above market value their offer can be accepted within standard auction rules. However, contracts will need to exchange hands prior to auction day.

Speed

Under an auction sale, the entire process exercise from instruction to completion can take very little time. Among all the modes of selling your house, there is no faster way to sell residential, mixed-use and commercial property, than an auction. In addition, under an auction sale, there is no cooling off period, meaning once an offer has been made, there usually are no delays in finalising the transaction. Moreover, if you have time constraints this means auction is the best option for you. Time constraints could be as a result of you relocating or wanting to dispose of a property quickly. Furthermore, you could be wanting to quickly release equity for other investments. Whatever your needs, selling at auction is the quickest way to dispose of real estate.

Best price

Properties that are sold at auction usually achieve the best price. This means that. Essentially, an auction will guarantee that the seller sells at the best price on the day. In addition, the auctioneers will also market the property. However, this will be at a cost, so keep that in mind. This marketing, on the auctioneer’s website or catalogue has the added bonus of giving potential buyers advance notice of the forthcoming sale.

Control for the vendor

One of the biggest misconceptions that people have is that they will lose control of the value if their property if they sell via auction. However, this is far from the truth. In actual fact, unconditional sales, vendor bills, as well as reserve prices, give the seller a great deal of control 9ver the sale process.

Security

When the auctioneers hammer drops, this means the property has been sold. In addition, the buyer is obligated by law to follow through on the transaction. There are legal ramifications in case the buyer changes their mind.

We strongly recommend that you consult with a real estate agent to guide you through the auction process. They will evaluate if this method of sale will suit your needs and explain its merits in greater detail.

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