How to sell a property at auction
If you want to achieve a great offer and quick sale, you may well be considering selling a property at auction.
There are a number of scenarios in which a property auction can be beneficial to you as a seller. If your property is in need of refurbishment or complete renovation for example, you may still be able to achieve a competitive asking price by targeting investors rather than homeowners. Auctions are a great place to sell properties that are difficult to value, and if you have had a change in circumstance and are looking to sell quickly, opting for a property auction is a smart choice. Non-traditional buyers tend to frequent these events on the hunt for a bargain, so you may be able to achieve the quick sale you’re after.
Luckily, you don’t need to be a property expert to try your hand at selling your home or commercial space this way. Here, we look at helpful tips for first-timers and seasoned sellers alike.
Steps for selling at auction
Ensure your property is suitable for auction. The best types of property to be sold at auctions are those that wouldn’t fair well on the traditional housing market. For example, where refurbishment or out-dated properties may put off homeowners, it’s the case that developers, builders and investors attend auctions in search of exactly these types of bargains. Auctions are also great for properties that are difficult to appraise, as bidders can compete with each other based on their own requirements as opposed to market value.
Market your property effectively. Just as you would market your property when selling traditionally, make sure you get the word out about your listing. Target both private and professional buyers, and use a combination of methods such as newspaper ads, direct mail campaigns and even social media. The auctioneer house will have your property listed on their website and available to their database, so ensure you are working with an establishment that has a wide reach. You should also ensure you have professional photographs to share on their marketing materials if possible.
Prepare for auction. Property auctions can be intensely exciting if a little overwhelming, especially if it’s your first time selling a property in this manner. For that reason, you may want to go with someone, and sit in on one beforehand to have an idea of what to expect. Demand from competing buyers can quickly drive the price skywards, so you could expect to enjoy an exciting day and swift sale.
- Seek professional advice from auctioneers or buyers who have experience with property auctions. Many auctioneers will be able to determine if your property is suitable for auction and put together a rough appraisal with no obligation, simply based on details you can provide over the phone.
- Ensure you are really ready to sell when auctioning a property. Once the gavel drops, the buyer is legally obligation to complete the sale, and there can be no backing out or negotiating beyond this point.
Written by: Rob Limbert on Tuesday 17/11/2015