Selling Through an Estate Agent vs Auction: An Overview

There are many ways to sell a house, but selling the conventional way (through an estate agent) is not always a success and can lead to total frustration. One option that can work is selling a property through an auction, a concept with numerous advantages. However, it’s important to understand the pros and cons of selling at an auction, as it is often seen as a final roll of the dice. Knowing the pros and cons of selling at an auction can help you decide if it’s the right choice for your property.

The Advantages of Selling at Auction

One of the biggest benefits of property auctions is the speed. Auctions suit properties that need a quick sale, like repossessions, where time is critical. Auctions also work well for unique properties or those hard to value. Some properties may not sell through an estate agent due to their condition. However, at an auction, buyers with the funds for renovations may attend.

In high-demand areas, an auction can spark a bidding war. This can drive up the price beyond expectations. Once the auction is complete, the sale is usually final, providing a quick and secure transaction.

The Disadvantages of Selling at Auction

Despite the benefits, the disadvantages of selling at an auction can outweigh the pros. First, there’s a lack of privacy. Before the auction, potential buyers and surveyors must be allowed to inspect the property. This can be time-consuming and inconvenient.

Although a guide price is set before the auction, the real value is determined by what people are willing to pay on the day. There’s a risk of achieving a lower price unless a reserve price is in place. The auction process also makes it tricky to plan for your next property purchase, as relying on auction funds can be risky.

Hidden Costs and High Fees

Selling at an auction often involves higher costs than using an estate agent. The auctioneer takes a percentage of the sale, and these fees can be hidden, catching sellers off guard. There are also vendor fees to consider.

Legal fees can also be higher. A solicitor usually needs to be present at the auction to handle contracts and answer questions, which adds extra costs for time and travel. The quick turnaround, typically within 28 days, may also be a disadvantage if you’re not fully prepared to move.

Auction Properties and Bargain Hunters

Many buyers at auctions look for bargains, especially properties with structural issues that are hard to sell through traditional methods. Sellers must be aware that auctions often attract those looking for discounted prices due to defects.

Is Selling at Auction Right for You?

There are both advantages and disadvantages to selling at auction. While it can be a quick and effective way to sell certain properties, the risks and higher costs may make it less appealing. At buymypropertyforcash.co.uk, we offer a simpler, faster alternative. We buy any property, regardless of condition, making the process easier and more efficient than selling at auction. Best of all, we are the buyers, so you won’t have to worry about the hassles of an auction.