Property auctions: a changed game

May 10, 2018

Have you ever watched Homes Under The Hammer? If so, you probably think that property auctions are only for run-down properties being sold by desperate people who need a quick sale.

That was definitely true in the mid-1990s. But we all know the world has changed since then. In fact:

In Australia and New Zealand, almost every property is now sold via auction.

Since we opened our first office in 2012 we’ve sold terraced, semi-detached and detached houses at auction with prices up to £850k. Auction sale revenues increased by over 60% in 2015 alone, so it’s pretty clear that more and more people are embracing the “better way” of selling.

The open market is traditionally the most popular way to sell, but it’s filled with potential downfalls:  You risk exposing yourself to property chains; there’s a 1 in 4 chance of the sale falling through; and, even if all goes well, you don’t normally secure financial commitment until two weeks before completion.

In contrast, auctions help you to:

1. Generate more viewings through an attractive guide price;

2. Get genuine commitment via a 10% non-refundable deposit; and

3. Sell for the right price through a binding reserve price – all generally within 6 to 8 weeks.

We understand that modern auctions can seem like unfamiliar ground so if you’d like to talk about this approach in more detail, please do feel free to get in touch. There’s no reason whatsoever why your property can’t be an auction success story!

Our Property Supertips email series explains more about the best way to sell your home – however you choose to do it. It's free and we’re confident that our advice will help, so why not sign up today?!