The Benefits of Selling Property by Auction in the UK

While selling by auction may not be the first option thought of by sellers, auction is becoming a growing trend. There are advantages for both buyers and sellers over traditional property selling methods. These include:

1. Speedy Sale

Under traditional methods, the selling process can be drawn out over weeks, or even months, with no guarantees on either side as to timescales. Selling a property by auction ensures a fixed timescale, which provides certainty for both buyer and seller.

2. Transparency

When a property is being sold by auction, buyers have equal access to information about the property, including legal documents, surveys and inspection reports. This enables buyers to make an informed decision before entering into bidding. The bidding process itself also encourages confidence through its transparency and inherent impartiality.

3. Certainty

When selling a property traditionally, there is always a risk on both sides that the transaction may not go through until a property has been exchanged when it becomes much less likely. When selling by auction, the sale is legally binding when the hammer falls, and the buyer is committed to the purchase.

4. Flexibility

When selling by auction, sellers have a greater degree of flexibility than with other selling processes. They can control the reserve price, the auction date and how long the property is marketed. 

5. Time and Cost Efficiency

Selling by auction streamlines the process from start to finish. Everything is handled within a defined timeframe, meaning that extended negotiations and the consequent additional legal costs for both sides are rare.