You Get More Security. If you know you need to move properties, you get more security through the Modern Method of Auction as there is a much lower abortive rate post auction compared to the open market. The buyer pays a substantial non-refundable reservation fee. Statistically, only around 5% of property sales fall through at auction compared to the previously mentioned 30.6% of sales through estate agents falling through.
Fixed Viewings. When selling on the open market, if you are lucky, you will get lots of viewings in a short period of time and receive an acceptable offer quickly. However, there is no guarantee that this will happen and a house could be on the open market for some time with sporadic views and a drawn out price negotiation. With auction sales, the time for viewings before an auction is limited. Often auctioneers or estate agents will hold fixed viewing days meaning there is less inconvenience to you as the seller.
You Maximise Interest. You can set the starting price at a rate that will attract most attention from potential buyers, but also set a reserve to stop it from selling too low! Competitive bidding can drive the sale price up. It is important to remember to set your reserve price to ensure you can redeem any mortgage on auction property
You Can Save Money On Fees. When selling at auction, you have more flexibility on fees you need to pay to the auctioneer and conveyancer. The reason being is as part of the contract for sale, you can pass your costs onto the buyer. Auctioneers will often have their own fees which the buyer will pay and so you need to be mindful of alienating buyers if the costs are too great once any auction costs are added to your own costs. Another tactic to make your property more attractive to buyers is if you cover your own costs.
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