If you thought that selling property by auction was the last resort of a desperate vendor or a family wanting to move from a compromised house, think again!
Many sellers are turning to auction as an alternative way of selling their homes and many properties sold by this method are desirable houses, in good condition and in favourable locations.
Keen to increase the range of services we provide to our clients, Warren Powell- Richards have teamed up with a well established and experienced Auction House to launch our own branded auction department.
Traditionally auctions have been held in a venue such as a hotel conference room at a predetermined day with bidders physically present or at the end of a telephone.
At the fall of the hammer, contracts are deemed to have exchanged and there is a legally binding commitment to complete the transaction, usually in 28 days.
In modern times, online auctions have become increasingly popular as they offer the seller flexibility and control of the process and at Warren Powell-Richards this option it’s commission free.
Why is the popularity of property auctions on the rise?
SPEED - As long as the reserve price is achieved, their property will be sold on the auction day or earlier and completion will be set 28 days or if they prefer, 56 days later.
SECURITY – Rather than the period of anxiety in a standard private treaty sale between accepting an offer and exchanging contracts, there is the certainty that when the digital hammer goes down, the sale is secure. Having already carried out their pre-sale checks and surveys, the buyer is financially committed and pays a non-refundable deposit and reservation fee.
PRICE – The property is only sold if it meets or exceeds the reserve price set by the seller unless they agree to accept a lesser amount. The starting bid price is advertised at a competitive level to encourage interest and generate competing bids.
TRANSPARENCY - The process is transparent with both the vendor and prospective buyers aware of the bids being made. Our proactive auction team is there to guide and advise both the seller and purchaser every step of the way.
COST – Vendors sell at auction without incurring estate agency or auction commission fees which are be paid by the buyer through an additional reservation fee. The only costs the vendor will occur prior to a sale will be for a legal sale pack that contains all the documentation required to process a sale including the searches. Sellers can use their own solicitor to do this but we have access to our auction partners solicitor who specialise in this type of work and can produce complete packs at a competitive price. There will be subsequent solicitor’s conveyancing costs to be paid.