Buying and selling homes via auction is becoming increasingly popular, as sellers weigh up the factors of time, price and publicity.
The National Association of Estate Agents (NAEA) is urging 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. ”
Gary Harper, President of the National Association of Valuers and Auctioneers (NAVA), said: “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.”
NAEA and NAVA advice is:
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.
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.
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.
One of the great things about an auction is the speed in which the process is conducted, but make sure you know what you are bidding on!