How To Find A Modern Method Of Auction
Property auctions haven’t always been the best way of selling your home. Fortunately, they’ve changed a bit in recent years. Today’s modern property auction system makes an auction far more accessible to lots of different kinds of buyers, so sellers get the certainty they need and a better overall property selling experience.
The Benefits of a Property Auction
There are many reasons to consider selling your home through a property auction. Traditionally, you might typically use an estate agent when you traditionally sell your home. This process, though, can be a long one. Even after you have a buyer on the line, they might still change their mind, drop their offer, and send you immediately back to square one. While selling your home at auction likely won’t get you the high price an estate agent might have, it will work rather quickly, and most homes that go up for auction usually manage to get at least 90% of their property value.
Traditional Property Auctions
In a traditional property auction, a single event is held, and buyers bid on the property in real time. Typically, properties are advertised about a month ahead of time in the auction catalogue. The sale begins with an agreed-upon starting price, and then as long as the reserve price is met, the property is sold to the highest bidder of the day. The auction is pretty competitive, so many less experienced buyers just aren’t interested in buying property this way. Moreover, the exchange of contracts takes place immediately, and the sale must be completed within 28 days, typically not enough time to get a mortgage.
The Modern Method of Auction
What is the modern method of auction? It’s a version of how things once worked, but it has a longer timescale attached, which means more buyers can get involved. Ahead of the auction, properties are actively marketed, just as traditional home sales are. The modern method of auction means giving buyers access to the property both on and offline. Often in the modern method of auction, Rightmove and Zoopla are part of the process. Potential buyers can even book showings well in advance so they can see the property.
How does the modern method of auction work? The property is listed, and the auction itself takes place for a period of 30 days or longer. Bids can be placed at any point in time over those 30 days. No live auction is held. Buyers can even bid on an incremental basis. The longer the auction goes on, the higher the overall sales price.
The changes to the system are part of the real benefits of this option. Several changes happened with the modern method of auction. Website advertisements are made, and that means the potential of attracting lots of different buyers. Another real advantage comes with financing. Because there’s a longer period present with the modern method of auction, mortgage options are available to many buyers, making the modern method of the auction for buyers a real advantage.
With so many good things to say about modern methods, are there any drawbacks? There are a few. The biggest, for most, is the modern method of auction fees. The costs involved with auctioning your home could be as high as £1,000 in some cases. The other real drawback is that many buyers have to compromise on the price. You won’t get as much at auction as you might have gotten if you listed your home on the market. What you will get, though, is a faster sale.
Is a Home Auction Right For You?
If you need to sell your home as quickly as possible, using the modern method of auction might be a good choice. Whether you’re trying to repair a broken property chain, you need to move quickly for a job or another reason, or you just don’t want the hassle of a traditional sale, this might be the right choice to meet your needs. While it does have some drawbacks, it also offers some opportunities other kinds of sales just can’t match.