Auctioning A House Pros And Cons
Published by Property Saviour
The UK's No.1 Fast House Sale Company
September 19, 2018 - Read time: 3 minutes
Auctioning a house has become popularised recently. Television programmes such as “Homes Under The Hammer” has made it seem like an attractive way to buy and sell and house. Auctioning a house pro and cons won’t be revealed by your auctioneer or they won’t openly advertise them.
However, selling a property at auction has its’ issues and they won’t be seen on a house auctions website! What television entertainment shows fail to explain is that auctioning a house comes with some pros and cons!
Firstly, there are some advantages of auctions, but only if it is absolutely right for your personal situation;
Once again, an auctioneer won’t tell you what the auctioning a house pros and cons really are.
So, we will do!
The Buyer Has Their Finances In Place Before The Auction
In order to purchase at an auction your buyer must have their finance in place.
However, so do we!
And we give you the full price – not just 10% of it – within days.
With Property Saviour there is no waiting twenty eight days for the cash to come through!
When The Hammer Falls You Have Exchanged Contracts
Most sellers heave a sigh of relief when the dreaded hammer falls on their property, as it signals the sale of the house.
But the auctioning a house pros and cons do not stop with the auctioneers’ hammer!
Unfortunately, it’s still possible that the sale may not complete, even at this late stage. Although, in many cases it will do.
Which leads us on to the problems of sale by auction.
There Is No Guaranteed Sale
One of the biggest disadvantages of auction is that your house may simply not sell. And this is not all…
You Pay Twice To Re-Advertise It
As well as the disappointment of failing to sell, you must also pay to re advertise.
When weighing up auctioning a house pros and cons, this is something to remember. It won’t be mentioned in the selling property at auction advice!
Your Privacy Is Invaded!
When discovering what auctioning a house pros and cons actually means for you, it’s important to be able to spot the potential disadvantages of auction.
When you sell your house at auction, people will come and view it.
This means having them stomp through your living room and giving your house the third degree!
For someone unused to selling at auction that may not have had correct advice about this, it can come as quite a shock!
At Property Saviour we respect your privacy and only need one viewing to value your property.
For many people, strangers in their house is just another downside of auctioning a house, which has started, by now, to feel like few pros and many cons!
You Must Pay Upfront…Again and Again!
When selling a house in auction, you must pay the auctioneer upfront and then once again, to get a legal pack.
Together, these fees total around £2,000-£3,000.
But when you sell your home to Property Saviour, we pay your legal fees.
Selling At Auction Fees Apply Even If You Don’t Sell Your House At Auction!
A little-known fact is that if you sell your house prior to the auction happening, you must still pay fees.
There’s no such risk when you sell to Property Saviour and we do buy any house.
The Auctioneer Is Paid First
Did you know that the first person to receive any cash from the sale of your home is the auctioneer?
This is on top of them charging you up to £1,000 upfront and then relieving you of £2,000 for a legal pack and searches.
In addition to this, you will also be handing over 2.5% and VAT from your deposit, before the rest of the money comes through. And that is if it does complete successfully.
You also need to pay a solicitor to come with you on the day of the auction, which can get expensive!
Don’t forget this, when looking at auctioning a house pros and cons… because you can bet that auctioneers would like you to!
Also remember, there is a twenty eight day wait before you will get remainder of the money through. If you need this to purchase another home, it can cause problems.
Can really you afford to do this?
You Can Be ‘Locked In’ To An Auction House
As well as all the extra auction fees for selling a property, plus the auction costs of not selling – you are also ‘locked in’ to that auction house for a two to three month period.
This, we feel is unfair and not something that Property Saviour will ever do.
You Might Not Get What You Hoped
In a nutshell, you simply may not get what you were hoping for, when selling a property at auction.
And as far as auctioning a house pros and cons go, we think this is a pretty big deal!
Not only is it disappointing – it could also give you a financial headache.
When you sell your home direct to Property Saviour, we give you a firm offer – fast – and stick to it – with no risks.
You Are Limiting Who You Can Sell To
Another thing to bear in mind when it comes to selling a house at auction vs a private sale is that you are setting a limit on who will see your property.
Put shortly, a lot of potential purchasers are put off from buying a house at auction. This is possibly because buying a house at auction as a first-time buyer is stressful – as is selling a property at an auction without the correct advice!
It is unlikely to draw in a wide pool of interested buyers. In fact, the people who are likely to be buying a house at auction are the ones who know the process well, i.e. the professional landlords.
And these are people who will be unlikely to bid above the rock bottom for your property.
So why sell a house at auction if it is not going to attract the biggest possible audience?
Property Saviour Can Help
We want all house sellers to be fully aware that auctioning a house comes with some very important pros and cons.
Although some are not deterred by the spiralling auction costs, many sellers won’t really understand how to auction their house effectively and stand to lose out.
So, is auctioning a house a good idea or not? Only you can decide that, but for some independent selling property at auction advice, you can trust Property Saviour to help.
Unlike an auction house, we guarantee your sale and you will typically have the money in your hand within ten to fifteen days.
Want to chat further – call us on 0113 320 6700!