IS AUCTIONING YOUR HOUSE A GOOD IDEA?
There are many ways to sell a house, like hiring an agent with the help of realtors, offering open houses, and selling yourself and auction. Every way has its pros and cons, but these days auction is held in a market with both a selling and buying point of view.
In the last few years and especially in this situation of COVID-19, the house selling and buying market has been highly affected. Most of the buyers lost their jobs and faced many problems regarding money. An auction was never their priority for sellers, but nowadays, auctions are a good method for selling and buying.
This article will explain the auction in terms of both buying and selling. If I talk about sellers, they prefer this method because they often get a better amount in less time. But it also has some disadvantages which I will explain later in this article.
IF YOU ARE SELLING
The dreaded reserve
Sometimes, you won’t get your desired amount while auctioning your house, but you can’t help with that. Such a situation puts you in a miserable state of mind. Sometimes your property is overvalued. At that time, you are overwhelmed with joy by getting that better amount.
Sometimes out property does not belong to the auction. This means that buyers are not interested in this type of property. In that case, you have to pay an auction fee regardless of your property selling.
No cold feet
It shows a situation. Sometimes, when the hammer falls, you won’t do anything when a decision is locked. But if you are in a crowded room with many people and voices and come from all around, this rush can save you from a lock situation.
If you are sure enough, this condition won’t be a problem for you. You will be mentally prepared for it; in minutes, your property will be of someone else.
When you want to auction your property, do some homework. Follow the market strategy and spread the news of your house’s auction. This will help you to get many buyers—the probability of finding a good rate for your house increases.
You are the one who needs to think about the marketing of your house because auctioneers do not bother much about the marketing. You can get some serious buyers who can buy your house at a good price by marketing.
Less number of buyers
It compares the number of buyers in an auction through an agent and open houses. The number of buyers in the auction is way less. Most buyers do not feel an auction is a good option because, in an auction, thing happens minutes, and this is not the best idea to deal with the biggest assets in life.
If you want to sell your house fast, you can use some websites and home buyers’ offers. It is better than auction as it has no fees and has sale guaranteed, you can also think about the decision feely.
IF YOU ARE BUYING
Guide price and reality
When you look at the list of houses listed for auction, a guide price is also mentioned there. Focus on that figure because that is the most important price. That price is the price sellers expect, or sometimes auctioneers put the least price a seller wants.
Original price can be varied from guide price. It depends on the audience who wants to buy the house. Do not be surprised if the original price will be more than the guide price. Sometimes original price increases up to too many thousand pounds.
This is the most important step of the auction. If you are mentally preparing for that before and walk in with enough money for the deal, there won’t be any problem.
But if you do not have enough sources and one hammer falls, then you will be in great trouble. Once the hammers fall, then that price will be locked. If it is your price, you will be ready to meet the deal.
Money is the most important thing while you are on your way to making a deal. You should have enough money before you go to auction. It is not only about managing debt but also about the financing of a new property.
Auction has the advantage that you do not need to pay the full amount on the spot. You need to pay 10% of the amount on the spot. Then you need to clear the balance, the full price of a property, after the day of the auction.
For walking into the auction confidently, you should be ready mentally and financially. A mortgage is all about luck, so you need to pay on the spot if you are lucky enough to get the house.
If you do not have enough money, you should not go for it. Because it causes embarrassment, and even auction companies can take action against you. So, take care of all the above things.
Management of time
When looking for a property at auction, there are various ways to know about that. Different auction companies publish their online and offline catalogs showing a lot about the properties ready for sale.
If you are interested in some property, you need to complete all the tasks before the auction day. This process is very stressful. If you are interested in some property, you need to complete a survey.
A survey has to be done and completed before the auction day. It won’t be a problem if you have three or four weeks. But it can be a problem if you have less time. Because if you are not done with the survey, it can create a lot of problems for you.
You also need to consult a solicitor for all the legal terms. Solicitor’s input is very necessary if you have even only one property. Usually, solicitors have a packed schedule due to caseload, which is also a time-taking step. So, if you are interested in some property, you have to manage your time accordingly.
I concluded that the auction is not that good for you by considering all the above details. For an auction, you need to consider everything like time management, money, and legalities. Also, the number of buyers is way less than the number of buyers through agents, realtors, and open houses.