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If you’re keen to sell your home quickly a property auction is one option to consider. However there are drawbacks that you should be aware of before committing to selling your home in this way. Here we take a look at how selling a home with an auctioneer compares to our property buying service.
What are the costs?
We do not charge any fees when we buy your home and we don’t work with estate agents. That means you do not have to pay their costly commissions. We also instruct and pay for solicitors.
If you sell your home at auction, you are likely to face several costs. For a start, there is a fee to enter an auction, of between £200 and £500. You’ll also pay for a legal pack to be put together which will include documents such as title deeds and property information forms. These range from £200 upwards depending on how straightforward the work is.
Most costly of all is the auction house commission, often between 2% and 3% plus VAT. On a £200,000 property, a charge of 3% plus VAT would come to £7,200. That is more expensive than most estate agents.
Who will get the best price for your home?
Before the auction, valuers from the auction house will visit your home and suggest a guide price that will be included in their marketing brochure. They’ll also set a reserve price below which your house will not be sold. There is no guarantee your home will reach the guide price. If offers are below the reserve price you’ll be asked to consider them, but aren’t obliged to accept them.
You may achieve a good price for your property at an auction but you may also get significantly under what you were hoping for, or nothing at all. If you work with us we will pay slightly under the market value of your home, but once we’ve agreed the final price with you it is guaranteed. We will not change our offer.
How long will it take to sell a home?
We can buy your home in just seven days if necessary. However, we will always agree a completion date that works for you. Because we do not sell on the open market we are never part of an unpredictable chain of housing transactions which so often cause sales to fall through. That means you can rely on the completion date we give you.
If you sell your home at auction the auction house will begin marketing it about four to six weeks before the auction date. Exchange of contracts takes place on the day of the auction if there is a buyer, with the sale completing around four weeks later.
Will people need to view your home?
If we buy your property, we will arrange for a maximum of two professional valuers to visit to confirm the price we’ve agreed over the phone. Other than that there will be no viewings of your home.
When your home is up for auction it is likely potential buyers will want to view it in the weeks before the auction takes place, which you will need to accommodate around your day-to-day life.
Can you get a cash advance?
We can arrange for a cash advance before completion to help you out of a difficult financial situation. An auction house will not do this.
In addition we can give you a licence to occupy. This means once you sell your home you are able to stay in it rent-free for an agreed period of time. We work with lots of people in stressful circumstances and this gives them a bit of breathing space to prepare for their next move.
Does your home need to be in good condition?
We will buy a home in any condition. Although auction houses will usually take on property in a poor state of repair, there is no certainty anybody will make a bid for it.
We will also buy homes with cladding issues. Many owners have been left with apartments that are difficult to sell on the open market, or have large repair bills, because their cladding does not meet fire regulations. Auction houses may list homes with similar issues, but cladding safety problems are likely to put buyers off.
Choosing who to work with
Deciding whether to sell your home through an auction or to us is a big decision. It will depend on your circumstances and what you need from your home sale. So it is important to weigh up all the points we’ve mentioned above.
In short, if you want a quick, guaranteed sale that is as stress free as possible, we are a good option. Particularly since we are experienced at dealing sensitively with challenging homeselling situations such as divorce and inheritance. However, if you are willing to take a risk in the hope you may achieve a higher price, an auction may be right for you.
We’d be happy to chat to you about our service if you’d like to find out more, so please get in touch.
Commission on sale yes
Solicitors fees yes
Sale in seven days no
Part of a chain no
Cash advance no
Licence to remain no
Fixed completion date no
Guaranteed sale no
Commission on sale no
Solicitors fees no
Sale in seven days yes
Part of a chain no
Cash advance yes
Licence to remain yes
Fixed completion date yes
Guaranteed sale yes