Selling your home is a huge decision, so it’s important to consider all the options available. We’ve all watched one particular day time TV show about buying properties at auction and there can be a lot of common misconceptions about selling properties through auction. We are going to look at these common myths surround auctions and explain why Modern Method of Auction (MMoA) may be a suitable option for you.
Myth.
Auction is only for experienced, cash-rich investors.
Truth.
Everyone can buy at Auction, including mortgage and first-time buyers. 35% of the properties sold at auction in the UK were purchases with a mortgage.
Myth.
Auction is only for low end, rundown properties and desperate sellers.
Truth.
Any type of property is suitable for Auction. The most important thing is not the property itself but the sellers personal circumstances. If a seller needs to move quickly because of a relocation or need to sell an inherited property to avoid the expensive running costs, then MMoA can offer security in knowing a completion can be met in 28 or 56 days with no fees to pay.
Myth.
There are large commission fees to pay.
Truth.
As fees are collected fees from the buyer, the seller does not need to pay any fees on completion. The seller still gets access to the full auction advertising and marketing without any cost to them.
Myth.
I have to accept the highest bid on my property, which may not be the price I was hoping to achieve.
Truth.
The Reserve Price you set ensures the property never sells for less than you expect. Your property is advertised at an attractive starting bid, leading to more viewings and interest; this equates to more offers and ensures you achieve the best possible price in the current market.
Myth.
Completion is too fast
Truth.
You can decide whether you would like the sale to complete within 28 or 56 days, but this can be tailored to your requirements if needed.
Auction is not for everyone, it has it’s advantages, but also comes with limitations. If you are looking for a secure and speedy way to sell your property, MMoA is worth exploring further and considering. Here are some useful step by step tips to help you when selling via MMoA.
- Ensure all documentation is ready to provide. This includes documents such as ID, Proof of address, ownership, probate, power of attorney.
- Read Terms and Conditions fully and carefully. It’s important to understand the written documents before signing.
- To help drive interest and viewings to your property, it’s important to price your property carefully for auction. The more interest, the higher the chances are you will achieve the price you are looking for. There will always be a safety net of an undisclosed reserved price.
- Choose an experienced property conveyancer. As the timelines of auction properties are quicker, it’s vital to choose a solicitor that can progress the sale quickly once the sale is agreed.
- Once a sale is agreed, you will have 28 or 56 days to complete the transaction. With a date set this will give you set to arrange any removals or inform energy suppliers about the move.
We work closely with Pattinson Auctions who have helped by providing myth busting information on selling properties via MMoA. We have a successful relationship with Pattinson Auction, working together to help vendors sell their homes through auction. If you are interested or would like more information on auctions, call our office on 01164 569 700 or email melton@belvoir.co.uk to request more information on selling via auction.
