When the property market takes a downturn and properties take longer to sell (unlike the crazy days of the pandemic), selling, and even buying a property at auction can offer some security. This is even more true at present when the number of property sale fall throughs are on the rise, as are the associated costs. More people are considering auctions as a viable way to buy and sell property.
Here are some key reasons people chose to sell their property at auction:
Speedy Sale
Auctions can be a quick way to sell a property as they typically have a set date for bidding and completion. This can be advantageous for sellers who need to sell their property quickly, such as in cases of financial distress, divorce, or relocation.
Transparency
Auctions provide transparency in the sales process as bids are made openly. This can help sellers feel confident that their property is being sold at fair market value and that there are no hidden negotiations.
Competition
Auctions create a sense of competition among potential buyers, which can drive up the price of the property. This can be beneficial for sellers as they have the potential to receive higher bids than they might have received through other traditional methods of selling.
Unique Properties
Properties that may be unique or difficult to value, such as luxury homes, commercial properties, or properties with specific features or historical significance, can benefit from being sold at auction. Auctions can attract a specialised audience who may be more interested in unique properties and willing to compete for them.
Certainty of Sale
When a property is sold at auction, the sale is typically binding, and the winning bidder is obligated to complete the purchase. This provides sellers with certainty of sale and reduces the risk of a sale falling through due to financing or other contingencies.
Flexibility
Auctions offer flexibility to sellers in terms of setting terms and conditions, such as the reserve price (the minimum price the seller is willing to accept), auction date, and auction format (in-person or online). This flexibility allows sellers to tailor the auction to their specific needs and requirements.
It’s important to note that selling a property at auction may not be suitable for everyone, and it’s advisable to consult with a qualified property professional or auctioneer to determine if it’s the right option for your specific situation.
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