What are the main advantages of selling at auction?

What are the main advantages of selling at auction?
Oct 22 , 2020

In recent months, auction sales have boomed as many frustrated buyers and sellers have turned to this method of transaction to get a deal over the line in a fast, hassle-free, immediate manner.

The ability of auctions to head online easily – with remote auctions already in play even before the pandemic started – has helped this growth, as the transition to online-only has been easier than most industries. It also allowed the auction market to flourish even during the worst of the lockdown, when the ‘stay at home’ guidance was in place for everyone.

With restrictions tightening across the country, the new three-tier system now introduced, and continued talk of a circuit-breaker national lockdown to stem the current second wave, remote solutions are likely to continue to rise in popularity for the rest of the year.

People can still move home even in high alert areas, with viewings still able to take place as long as national guidance on moving home – which includes rules on social distancing and wearing a face covering – is adhered to.

As such, demand from buyers is likely to remain high, even as winter hits – and the immediacy of the auction process will be more appealing for those looking to act quickly, for a host of reasons.

But, as a seller, why should you consider selling via auction?

Simple, secure and fast

The biggest advantage of selling at auction is the simplicity and speed with which the process can happen compared to a traditional house sale, which can sometimes drag on for months on end and be severely disrupted by various delays and obstacles.

By contrast, selling at auction is a much faster, simpler process – but no less secure because of that. There are also great levels of transparency and immediacy.

Typically, the cost is also lower to sellers, with 0% selling fees and a free valuation. If you are a landlord looking to sell a rental property – perhaps with sitting tenants – you can continue to receive rental income until completion in a way that wouldn’t be feasible via the traditional route.

The exposure for a property via auction is also considerable – and not limited by geography. At the moment, many 24/7 live auctions are being run, typically for a five-day period or so, to allow as many eyes on your property as possible.

Those needing to sell fast – whether because they’ve inherited a property, are keen to exit the rental market or just because they have struggled to sell elsewhere – can also benefit from the quick turnaround times involved with an online auction. Once a property is sold, contracts are exchanged within 28 days and a set completion date is created 14 days later.

An all-in-one service

Selling at auction doesn’t mean you have to do all the work – quite the opposite. By working collaboratively with an auction house or provider, you will get the benefits of professional listings on the leading portals – as would be the case if selling through an agent – and professional imagery, either for free or a small additional cost.

In addition, crucial elements such as the Energy Performance Certificate (EPC) and floorplans will be arranged on your behalf.

Your home will be made ready-to-sell before anyone can bid on it at auction, in other words.

Auction houses are offering more than one type of auction at present – with online auctions lasting a number of days, as well as traditional online auctions, which boasts same-day exchange once the electronic hammer falls, as would be the case in a traditional in-room auction. These are typically live-streamed, with an auctioneer dictating proceedings in the usual way.

It’s also important, of course, that you set a realistic guide price, which is why it’s vital you work with a reliable, experienced auction house to understand local and national price trends and where your property fits into this.

Here at Opal Auctions, we also have a ‘Sell Now’ service, which comes with no sellers' fees and a legally binding agreement for the buyers to purchase at your asking price as soon as they have paid an exclusivity deposit.

Numerous pieces of research throughout the pandemic have pointed to the surging popularity of property auctions, as the stigma perhaps previously attached to this sector – there as a last resort for desperate sellers; only selling beaten-up homes that no-one really wants to buy – has diminished.

Of course, like anything, there are no guarantees when selling at auction – and certain challenges and issues can still emerge – but when it comes to generating demand and ensuring a fast, simple, secure and transparent sale, there are few better options.

It’s crucial, therefore, to partner with the right auction house. At Opal Auctions, part of Opal Property, we can guide you through the buying and selling conditions using our 24/7 bidding method.

A sale is effective immediately at the end of the ‘5-day live auction’. After this point, the successful buyer is legally obliged to purchase the property and exchange contracts within 28 days and complete in a further 14 days. The ‘Sell Now’ service is also on offer for those with more immediate needs.

To find out more about what we offer, click here. For advice on why you should consider selling your property at auction, check out this page.