Hey, Perry Power here.
Now I know this may not be relevant to you right now but I’m sure it will be in future and when it is, you’ll to be glad you read this email.
So property auctions… just for houses that are falling down right? Wrong.
Traditionally, people would only really put properties into auction that were ‘un-mortgagable’. So properties with structural issues, land, blocks of garages, etc or if the seller just needed the money quickly. The assumption was that houses sell cheap at auction… also wrong!
Both methods are a GREAT way to secure the best price (as people bid against each other) within a set timescale but more importantly you get sale certainty. The buyer financially commits to buying at the point of offer acceptance, unlike private treaty sales where 34% fall through and the 66% that don’t take 3 months to go through (that’s high risk, high stress and uncertain if you ask me).
Countries such as Scotland & Australia don’t really use the Private Treaty method as it’s so high risk. N.B: I know Scotland isn’t technically a country but you get what I’m trying to say!
With auction you can actually sell for more than perceived market value,. For example, take these 2 properties I recently sold via auction:
1. Three bedroom house in Earlswood: This was a gem of a house and we chose conditional auction as the method of sale. Valuations by estate agents were coming in around £350,000-£375,000. It needed modernisation but had bags of potential. It actually sold for £465,000 (you can see the bidding history HERE) It would NEVER have got that price if the seller and I chose conditional auction as a method of sale. We chose conditional auction as the sellers needed it sold within a strict 2 month timescale but it was fully mortgageable.
2. Four bedroom detached house with land in Charlwood: Again, a great property but it was being sold as the owners had unfortunately passed away. It was also fully mortgageable but had 3 previous sales fall through with other estate agents due to chains breaking down and the sellers didn’t want to take that risk again so we decided to go down the un-conditional auction route. It sold for £100,000 over the guide price and only 3% less than the price it was agreed at private treaty… yet the sellers received a £79,000 deposit on the day the offer was accepted.
You see, you may never had even considered auction as a possible sale method due to the perception property auctions have but from now on, I want you to change the word auction to ‘certain’. So rather than Property Auction Sale, it will be a Property Certain Sale. Certainty is the main benefit to sellers and buyers and because of the nature of any auction (open, competitive bidding) you also get the best price. It’s waaaaay more transparent which is why I like it so much.
So in summary, if you need a more certain sale, quickly (maybe because you are moving abroad, relocating jobs, had lots of sales fall through, will lose the house you want to buy if you don’t sell quickly), consider selling by auction, sorry, by Certain ;).
We regularly hold property auctions in Mayfair, London and help clients all over the UK so if you’d like to chat about the feasibility for you or your property, just fire me an email (firstname.lastname@example.org), drop a message in my Property Sellers Facebook Group or call me anytime on 07788 268 158.