Last Updated on Apr 8, 2020 by James W
Selling property can be time-consuming and complicated. First, you have to put the house up for sale and then advertise it until you can find potential buyers. Even when you find these potential buyers, there’s no assurance that you will close the sale. That’s why many homeowners choose to put their property up for sale at an auction when they’re looking to make a speedy sale. If selling your property at an auction interests you, make sure you clearly know what to do so you don’t make a mistake.
Understand the Costs
When you’re planning to sell your property at an auction, there are several costs that you will need to take into account to determine how much your reserve price should be. In order words, you should avoid setting your reserve price at the minimum value of the property. Otherwise, you could end up incurring some losses. First of all, you should be prepared to pay the auctioneer around 2.5% out of the price you’re getting for the property. You also need to account for the cost of advertising, set a budget for it, and stick to it.
What you shouldn’t miss is the cost of hiring a solicitor, who will handle the legal aspects of the sale. It’s crucial that you shop around for solicitors and compare their property sale conveyancing quotes on a site like Compare Conveyancing Quotes to find the best option.
Choose the Right Auctioneer
Another crucial element is your choice of auctioneer. The right one could help you fetch a good price for your home while the wrong one could result in heavy losses. When deciding on an auctioneer to help you with your property sale, make sure you check out the promotional material they’ve created for other houses. Are they able to highlight the best features of those homes and frame their messages in a way that would appeal to prospective buyers? If cost is the most important factor, it’s ideal that you opt for a lesser-known auctioneer as they can be more accommodating in addition to being less costly. Reputable auctioneers will charge slightly higher, but they can effectively market properties to the right buyers, which can also be desirable depending on your needs.
Set the Right Reserve Price
When you’re deciding on the right reserve price for your property, it’s important to be as realistic as possible. In addition to understanding the costs as mentioned in the first tip, you should take into account the asking price of homes similar to yours that were on sale recently. You should also look at the price those homes eventually sold for. This will help you gain a realistic understanding of how much your property is worth in the market and work with your auctioneer in setting a realistic reserve price.
These three important tips will guide you in making a successful property sale at an auction. It’s important that you market your property to attract the right buyers. While this can be a challenge, the right auctioneer will be able to help you with this. They will help you in showcasing the best features of the home while making the most of your advertising budget.
