Our Director Stuart Collar-Brown talks us through buying at Auction.
Selling a property is a big decision. Whether it’s your family home or part of an investment portfolio, it can be a daunting process, especially considering the high percentage of property sales that fall through.
Unfortunately, selling a buying a property isn’t always a straight-forward process. The success of a sale depends on several factors, including many that are out of the seller and/or buyer’s control. Because of the high fall-through rate from private treaty sales, property sales via auction are on the rise. In fact, during the past two years, the number of properties sold at auction has increased by a whopping 40%.
Everybody hopes for a quick and easy sale/purchase when it comes to property and with the main benefit of selling via auction being the low fall-through rate that is less than 1%, it’s no surprise that more and more people are opting to sell this way.
In Q4 2021, 39% of property sales fell through due to the buyer changing their mind or attempting to renegotiate the offer and 27% because the seller accepted a higher offer from a different buyer or switched buyers due to slow progress. Selling via auction eliminates the risk of this due to contracts being exchanged on the day of auction.
Sales via auction typically complete within 28 days and with the buyer legally bound to pay a 10% non-refundable deposit, the chances of the sale falling through are reduced significantly. The significantly faster turnaround time is also a huge incentive for selling via auction.
Of course, when selling a property, we all want to squeeze as much money out as possible. Another benefit of selling via auction is that properties typically earn a higher sale price due to the fast-paced and competitive nature.
Whilst auctions are historically known for being the ideal selling space for ‘problem properties’, they also provide the perfect opportunity for those who want to meet a sales figure by a certain date, those who don’t want to risk a sale falling through and those who want a hassle-free sale.
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