Selling Your House at Auction – Is it Risky or Safe?
If you’re considering selling your house at auction then a quick sale is possible, but it may mean selling at undervalue if there is little interest on the day. In fact the cheapest house sold at auction in the UK could cost about a £1. Yes, £1. And no, you’re not seeing things, it really is true.
There are many run down properties throughout the UK and some of them eventually find themselves in an Auction House and on the auctioneers for sale list, probably because the owners just want a quick sale. But they often don’t put a reserve price on their property, because they’re quite happy to get anything for it – £10,000, £20,000… more? Even in a prosperous town like Leeds, some properties have sold fast for a pittance in the auctions.
At the Auction House, most expect a bidding war between the various interested parties. Trouble is, what happens if there are no interested parties? Well, if there’s no reserve then £1 could actually buy you a house! Auctioneers don’t exactly ‘market’ the properties on their lists, they are just there to sell them on the day, taking their commission in the process.
Well, if the objective was to sell a property quickly then it’s achieved its aim. But I’m sure the owner wouldn’t be impressed with the sale price (unlike the new owner!)
Okay, let’s say you managed to pick up such a bargain at the Auction House, you have to assume there’s something wrong with it for no one else to bid more than £1 (okay, lets say a few thousand pounds). The roof will need repair no doubt, the interior will be a mess, it will be situated in a ‘not very nice area’ the utilities will all need replacing – basically, there won’t be a single part of the property that won’t need some work doing to it. But still, it’s cheap! Even after spending however much to even rebuild the thing, it’s still got to be a bargain.
Selling your house at the Auction House – pitfalls
Selling a property through an auctioneer can have serious pitfalls; basically it’s a massive risk – and not one that should be taken lightly. Yes you’ll get a fast sale, but there may be better ways to sell a house quickly on the day.
There was one tale of a homeowner who raffled his house off – he sold tickets at £50 each and actually realised his market valuation price before pulling out the winning ticket from a hat. Some lucky punter then got a £200,000 house for £50 – now that’s a bargain! And it didn’t need any real work doing on it either. But it did mean for a happy vendor and an even more happy buyer, plus it was all done within a pre-determined time frame.
These are two very extreme examples of selling a house albeit at a type of auction, but also where two very extreme values which were achieved. But thankfully neither of them are the norm, obviously the usual way is to instruct an estate agent, sell it yourself through your local newspaper or speak to a specialist sell house fast company to do it all for you, it’s your choice. Find out more about Auctions with EIG.
At the end of the day, it’s all down to which route the vendor feels most comfortable with and just how long they can wait for a sale. For some time is the most critical factor and for others it’s money.
But for most, there’s no right and no wrong answers, just quick answers. So if you want an alternative to selling your house at auction, then try selling your property online instead of fast at Auction, call Flying Homes 0800 669 6784 TODAY, we can help!
Image By Umuiowiadupia (Own work) [CC BY-SA 3.0 (http://creativecommons.org/licenses/by-sa/3.0)], via Wikimedia Commons