It doesn’t matter whether you’re planning to sell your family home, an inherited property, or even one of a portfolio of properties, selling any residential asset is a major deal.
After all, residential property is one of the biggest assets anyone can realistically own in life. When cashing in on a property, you’re sure to want the best possible price and a minimum of anxiety.
That’s why many are drawn to listing their properties at auction houses. They want a quick sale, ideally closed after a bidding war on the auction floor. But here’s the reality – selling properties at auction is rarely a good idea.
The Sale is By No Means Guaranteed
One of the largest myths surrounding property auctions is that any property listed will guarantee a sale. This is a complete lie, especially if you set a reserve price. If there’s no-one on the auction floor prepared to match your reserve price – the minimum you’re happy to accept – the property will be unsold.
It’s not even an irregular occurrence either. This happens all of the time. Weeks or even months of preparation in finding the right auction could be flushed down the drain, forcing you to return to square one.
It isn’t the Quickest Way to Sell a Property
On the surface, property auctions feel like the fastest way to sell a home. But there’s a much better alternative. Cash buyers can offer an even quicker route to closing a deal.
Unlike auctions, where there’s no guarantee of a sale, cash buyers will make a firm offer upfront. If you’re mulling over how to sell your house quickly, cash-buying companies have the funds sat in their bank account, ready to go.
They are also happy to buy properties of all conditions and locations. This means that, providing you’re happy with their offer, a deal can be closed within as little as seven days.
Auction Fees Aren’t Cheap
It’s also worth noting that selling properties via auction isn’t an inexpensive process. There’s lots of little costs which all add up over time. Firstly, the auction house will charge listing fees and marketing costs to promote the property in the days and weeks leading up to the auction.
Secondly, the auctioneers will also take a cut of the final sale price, eating further into your potential returns.
Worse still, if the property doesn’t sell, you’ll still be lumbered with the listing and marketing fees, leaving you down on the deal.
You’re Not in Control of the Sale
Auctioning a property also takes an element of control out of your hands, even if you have a reserve price set. The auctioneer sets the pace of the bidding and then you’re also at the mercy of the others on the auction floor.
You must hope that there’s someone in the room that’s prepared to pay what you want; or see the potential in a property that’s in desperate need of redevelopment.
Whereas with private sales – be it an individual or a cash buyer – you’ve got the final say in the sale price and sale timeline to suit your needs.
In short, property auctions aren’t the sure-fire thing they’re cracked up to be. Rather than rolling the dice at auction, it may be easier and even faster to look at a cash sale to save time, money, and a whole lot of hassle.
