How to sell houses at auctions
Below is a MRR and PLR article in category Finance -> subcategory Real Estate.
How to Sell Houses at Auctions
Overview
Selling your house at an auction can be a quick and effective way to close a deal. However, be prepared to hand over the keys just 28 days after the auction date.
Benefits of Selling at Auction
1. Instant Exchange of Contracts: Immediately binding.
2. Cash Purchase Incentives: Buyers usually pay a minimum 10% deposit at the auction.
3. No Contingencies: Sales aren’t subject to lengthy agreements.
4. Competitive Bidding: Potential to achieve the best price.
5. Wide Exposure: Auctions attract numerous potential buyers.
6. Fixed Timeline: Know exactly when your house will be sold.
7. Quick Sale: Without sacrificing value.
Choosing the Right Auction House
Select an auctioneer who deals with properties similar to yours within the same price range. This increases your chances of getting a favorable deal. Conduct a property assessment to set a realistic reserve price and avoid a disappointing sale.
Costs Involved
Auctioneers charge for advertising in brochures and catalogues, regardless of whether your house sells. Expect to pay around 2.5% of the sale price as commission. Always clarify all costs involved before signing any contracts.
Auction Process
1. Set the Reserve Price: Establish a minimum price you're willing to accept.
2. Prepare for Sale: Make your property available for viewings.
3. Legal Completion: Once the auction starts, the sale is legally binding. The buyer must pay 10% of the sale price immediately and the balance within 28 days. If they fail, legal action may be necessary.
Potential Drawbacks
- Unpredictable Sale Price: Auction outcomes can be uncertain, and you could sell for less than market value.
- Legal Representation Costs: You'll need a solicitor at the auction to address any final issues. This can be costly.
- Privacy Concerns: Properties must be open for viewings, which some may find intrusive.
- Higher Costs: Auctions may be more expensive than using real estate agents, and you'll incur certain costs even if the property doesn’t sell.
Selling your house at auction can be a swift and effective method, but it comes with its own set of challenges and costs. Be sure to weigh the pros and cons carefully before proceeding.
You can find the original non-AI version of this article here: How to sell houses at auctions.
You can browse and read all the articles for free. If you want to use them and get PLR and MRR rights, you need to buy the pack. Learn more about this pack of over 100 000 MRR and PLR articles.