The two quickest ways to sell your house are through a cash-buying company or an auction house. Both methods have advantages and drawbacks, but how do they compare directly?
The article below explains the key differences between We Buy Any Home and an auction house. Keep reading for everything you need to know.
What are the costs?
For instance, if you sell your property directly to We Buy Any Home, you won’t have to worry about any costs. There are no hidden fees, which means that the entire agreed sale price goes directly into your pocket. This can be a significant advantage, especially if you’re looking to maximize your profit.
When you use an auction house to sell your property, you will incur some costs. According to online data, the average auction house charges around 2% commission on the final sale price of your property. There may also be an up-front fee, anywhere from £250 to £500, plus VAT.
Who will get the best price for your house?
The answer to this question depends on several factors and essentially comes down to luck.
When you sell your house to We Buy Any Home, you will receive a no-obligation valuation. This means that we will assess your property and provide you with an estimate of how much you could potentially sell it for. This can make it easier for you to plan, as you know exactly how much will be entering your bank account. However, this offer will be slightly below the ‘typical’ market rate, just like any reliable cash buyer.
On the other hand, selling through an auction house introduces a level of uncertainty. While the starting bid is agreed upon, you have no control over who bids and how much they bid. This unpredictability can lead to a higher sale price, but it’s equally possible that it may fall short of your expectations. Unfortunately, this method of selling leaves the outcome entirely in the hands of others.
How long will it take to sell your home?
With We Buy Any Home, the sale of your property can be completed within seven days, thanks to our in-house funds. This eliminates the need to wait for other parties in a property chain, providing a hassle-free and swift process. If you’re looking to remove the property from your responsibilities quickly, this is the ideal option.
By selling your property through an Auction House, the marketing process for your home usually lasts between four to six weeks. During this time, potential buyers will have the opportunity to view your property and make their own assessments. Once the auction day arrives, the contract exchange takes place on the day itself if there is a buyer. You can expect it to take around two months to complete everything, from the initial marketing to the final sale.
Will people need to view your home?
We Buy Any Home will arrange for a valuation and survey to be completed on your property. As mentioned above, this can all be completed within a few days. There will usually be no more than two visits throughout this process, after which you will receive your offer. It is then entirely up to you whether you accept the offer.
Auctioneers hold several ‘open house’ sessions before a property is officially listed. This allows potential bidders to walk around the house, inspect its condition, and determine its worth. These sessions are usually scheduled at different times to accommodate different potential buyers, and you will need to make sure your property is presentable and accessible during these times.
Can you get a cash advance?
We Buy Any Home can arrange for a cash advance before the sale is completed if it is needed to help you out of a difficult financial situation. An auction house does not provide this service.
It is also possible for us to give you a ‘licence to occupy’. This means that once you sell your home, you can stay in it rent-free for an agreed period. This can give you breathing space as you prepare for your next move, allowing you to stay in your home while you search for a new one or make arrangements for your next move.
Does your home need to be in good condition?
No, there is no minimum condition requirement for selling your house with We Buy Any Home and an auction house.
A significant benefit of both these methods is that you can sell your property even if it has sitting tenants, squatters, broken doors or windows, a faulty structure or much more.
That said, contacting We Buy Any Home guarantees a sale will be completed because we will always give you a price quotation and have all the funds we need to make an offer. On the other hand, although an auction house will list your property for sale in any condition, you cannot guarantee that a buyer will be found.
Which provides a more personalised service?
We Buy Any Home will make an offer specific to your property’s condition, location, lease length, and more. When the valuation is carried out, you will meet a member of our team in person, and you will always have a direct line of contact with us in case you need to ask any questions. You can also arrange for the sale to be completed in the most convenient timeframe.
With an auction house, the price at which bidding starts will also be relevant to the condition and location of your property. The location of your property can affect its value and the interest it generates from potential buyers. However, you will not be able to have a lengthy conversation with the buyer of your house before the deal is complete. You also cannot control the amount the property is sold for.
Which method gives you more control?
With we Buy Any Home, you have the power to decide. We’ll make an offer based on our valuation, but it’s entirely up to you whether you accept it. You can also arrange for the sale to be completed at a time that suits you best, whether it’s within 7 days or on a specific date in the future. This flexibility puts you in control of the process.
People who sell their properties at an auction house often describe feeling powerless because once bidding starts, it can be a ‘free for all’. This means that anyone can place a bid, and the final price can be significantly higher or lower than what you expected. This lack of control can be a disadvantage, but it can also lead to a higher sale price if there is a lot of interest in your property.
Choosing the best option for you
You should carefully consider the best method of selling your house. After all, this is a major life decision with (probably) hundreds of thousands of pounds on the line.
If you need the deal completed within 7 days, a cash house buyer may be better. If you also want to plan your finances carefully and therefore need to know exactly how much money will be entering your bank account, cash buyers make this possible.
On the other hand, an auction house can be a helpful option if you want a chain-free sale process but still want the possibility of different buyers competing against each other. You may be particularly inclined to follow this route if you have already received a cash offer from a reliable company but have considered it unsatisfactory.
Whichever route you opt for, make sure you do careful research on whatever company you partner with to ensure that they are trustworthy and have plenty of positive reviews from past customers.
