Property Auctions become more attractive to sellers during credit crunch!
As the housing market slows down, more and more people are looking to sell their homes via Property Auctions. The results of sales through Property Auctions have also increased during this time.
While selling a property via private treaty is very common, Property Auctions offer an alternative for people wanting a quick sale, with the right type of property. Properties which are traditionally good for auction are the properties for renovation, modernisation, extension or replacement. Properties with land or barn conversations are also good to sell via Property Auctions.
Sellers Benefits
The major benefit to sellers in choosing to auction their property is the short lead-up time of four to six weeks before the auction, when the property is advertised. A reserve price can be placed on the property so there is no risk of it being sold for less than this. Should the property not sell at auction then it can still be offered for sale by private treaty.
Property Auctions are now attracting more and more first time sellers and first time buyers, which suggest that people are keen to try auctions. A lot of people who are struggling to sell by private treaty are enquiring about auction as a method of sale.
Property Auctions offer a clear and efficient process for both buyer and seller. The fast speed of the process is an amplified benefit when the private treaty market is slow.
If a property is likely to gain strong competition from more than one purchaser, a Property Auction is an effective way of achieving the best possible price for the seller. Potentially higher than a sale by private treaty. In general, prices in the auction room do tend reflect the current market and value of the property.
When the hammer falls, it is a legally binding contract and the property is sold. A sale by private treaty can never happen that fast.
Buyers Benefits
Many sellers opt to sell via Property Auctions as they cannot sell via a private treaty or a looking for a quick sale. Often this can enable bargains to be had.
During the current slow private treaty market, people who need to sell property quickly are opting for Property Auctions. If there is little interest in the property or it has not been marketed very well in the lead up to the auction, you may well be the only interested party. In this case you may well end with a bargain. However, if interest is strong, be careful you do not get into a bidding war. You must always set a personal maximum budget, and never exceed this price.
Once you have started bidding at a Property Auction, many buyers get caught up in the excitement and atmosphere. This is where you need a cool head and the ability to make quick decisions. Properties get sold very quickly at auctions and you have to be quick on your feet. If you have never attended an auction before, I would recommend going along to an auction where you have no intention of buying anything, just to acclimatise yourself so you know what to expect. Once again, may I strongly advise setting a maximum budget and not exceeding this. Do not let your heart control your purse strings.
Be sure that if you intending on bidding, that your finances are already arranged. If you are buying with a mortgage, make sure this is in place prior to the auction and that your deposit is immediately available as you will be asked to pay a deposit of usually 10% of the sale price. Completion will be required usually within 28 days thereafter.
The idea of an auction may seem daunting to some people but specialist auctioneers will be on hand to offer assistance through the whole auction process.