Auction as a method of home selling is becoming more popular in a tough market. Traditionally considered a route for distressed sales, auction is now attracting a broad range of properties when sellers weigh up the factors of time, price and publicity.
The National Association of Estate Agents (NAEA) has today urged sellers to speak with their agents about auction as one of the three main options of selling, alongside private treaty or tender.
Mark Hayward, Managing Director of the NAEA, said: “Sellers often approach estate agents with only one route to market in mind, but all NAEA members are obliged to run sellers through the various methods of sale and auction has a strong place as part of a flexible marketing strategy, especially in a tough market. By choosing a NAEA member you can rest assured that you will be given all the information to choose the right route to market for you and your property. ”
Gary Harper, President of the National Association of Valuers and Auctioneers (NAVA), said: “Competitive bidding, open transaction, quick sale and increased publicity are just some of the benefits for those selling their home through auction. In a sluggish market an auction sale can generate excitement with its unique dynamic; properties can go for tens of percent above the estimate and there’s no fear of being gazumped because when the hammer falls, the deal is done.”
The NAEA and NAVA have the following advice for home sellers considering auction as a sales option:
· Speak with your estate agent about all methods of sale – Your estate agent has a duty to select the best method of sale when conducting pre-sale valuations and recommendations for marketing. Make sure you cover the three main options: Private Treaty, Tender or Auction. Whatever your choice, an NAEA member will be able to help you take the most appropriate route.
· Consider your priorities – Is it a quick sale you are hoping for or one that will deliver the highest price? Auction can deliver on both fronts but it takes a different mindset to adopt the method; once the gavel falls, the deal is done.
· Does your home have a unique selling point? – Sometimes homes that have unique features can hinder sale - for instance planning permissions on listed buildings. An auction can often capitalise on unique features through publicity and natural competition among bidders in the auction room.
. Do your due diligence – One of the great things about selling and buying at auction is the speed in which the process is conducted, but don’t let this stop you from doing due diligence on the property. Make sure you know what you are bidding on and if you’re happy then get that paddle moving!