So why do people sell at a property auction?
Property auctions are used by sellers for countless reasons, some sellers have properties that require renovation works, some have inherited property and want to sell without having to ‘prepare’ it for sale, some sellers have separated and want a quick house sale.
Whatever the reason for the house sale, there are thousands of homes that go under the hammer in Liverpool every year. This guide will look at the process, the pros and the cons of selling your home at a Liverpool property auction and offer you an alternative option.
The Auction House Sale Process
- Choose your auction house, it could be local like Sutton Kersh Property Auction or Venmore Property Auction or a national auction house such as SDL Property Auction.
- Find out the fees and check your listing in the property auction catalogue. Most auctions now offer an online as well as the traditional physical copy.
- Instruct your solicitor.
- Based on the auction house valuation, set your reserve price (the lowest that it can sell for) and guide price (the price that you expect to receive based on the valuation).
- Go to the auction (or watch from your computer).
- Get paid!
The pros of selling at a property auction
- Your house can sell fast, usually the average time takes around 6-8 weeks for the entire process. Once the gavel drops, buyers have to pay within 28 days, most pay quickly.
- Buyers at auction are often looking for a new project, so if your home needs renovation works, that is not an issue.
- There is no chain involved, once the sale goes through there is no waiting around.
The cons of selling at a property auction
- If it doesn’t sell the first time round it can be disheartening, the process becomes longer, and you will have to wait for the next property auction.
- The fees can really add up, first is the auction house entry fee, then the auction house takes their commission, they add VAT on top and then you add you’re the auction house and your own legal fees; it can run into thousands, depending on the final selling price.
- Whilst the valuation team may value your home at one price, this doesn’t guarantee that this will be what the house sells for, you could end up walking away with less than you hoped for.
In Liverpool, the main auction houses used are Sutton Kersh Property Auction House, SDL Property Auction House, and Venmore Auction House. Entry fees for these auctions can be several hundred pounds, the commission can be up to 2.5% plus VAT, then add in the auction houses legal fees and your own legal fees; on a house selling at £65,000, the fees could be around £8,000!
The alternative to selling at a property auction
Companies, such as We Buy Any House Liverpool cut out the middleman. Often, they have the same motives as the buyers at a property auction. They want to buy property that requires renovation works so that they can invest their money into the property, often armed with a team of surveyors, architects and builders, they will transform a run-down house into someone’s dream home.
We Buy Any House Liverpool and similar companies don’t need to market your property, their team do their own valuations, they don’t need countless viewings of your home (so no having to tidy up at the drop of a hat) and they want a quick sale as much as you do, as they want to get started on their new project! How does this relate to you? You will receive the money that you are offered, your fees are drastically reduced (if any at all) and the house sale could be even quicker than the auction house!
We can’t comment for other companies, but here at We Buy Any House Liverpool, we offer to pay your legal fees if you use a solicitor from our panel. Why? Because we have dealt with them countless times over the years and know that they don’t mess about, they’re not in any way linked to our solicitors, it just makes sense for us that the sale process is smooth and fast!