Is a property auction the simpler route to getting a cash property sale? How do they compare with property buying companies?
In our experience some people just don’t want to deal with investors, cash buyers or property buying companies. They can’t face the negotiations, fear they’ll be taken advantage of, or think the sale will be problematic in some other way.
Fortunately a property auction can be a realistic alternative for some vendors. Maybe for you. But whether a property auction is the best place to sell your house for cash depends on three things:
Your attitude to risk
How quickly you need to sell
The probability of your property selling well
Why A Property Auction Can Be Better Than Cash Buyers
Property auctions involve an “arms length” transaction. And some might say objective. Dealing with property buyers can involve protracted negotiations. An auction has a “done and dusted” quality to it.
A property auctioneer will advise you on the suitability for your property for an auction.
Assuming your property is suitable to sell at auction, you’ll need to set a reserve price. This may need to be low to get bidders excited.
The risk here is that your property sells for far less than it’s worth. You have to weigh up the pros and cons of going this route.
Generally national auctions carry a range of properties from commercial, corporate and personal clients. Local auctions can be better for selling prestige residential property. A few estate agents have auction arms. These are seeking out.
The irony here is that property cash buyers and property auctions are often interested in the same kind of properties.
However. If you need to sell very quickly, say 8 weeks or less, it may be impossible to get your property into an auction catalog.