Before discussing what the advantages and disadvantages of an auction are, we need to understand, ‘What is an Auction?’
An Auction is a public sale in which goods or property are sold to the highest bidder. But we can go further than that and say that generally an auction of property has a set period attached to it, as the auction is advertised to take place on a certain day at a specified time.
It is a misconception to think that all properties involved in public auctions are either problematic, repossessed or properties that have been on the market for an extremely long time and this is a last resort. Some properties are auctioned due to the vendor needing a quick sale or there is an extremely high interest in the property.
Advertising a property auction well in advance allows potential interested parties the chance to inspect the property, arrange any finance and make legal enquiries, so that they are able to exchange contracts immediately, if they are the successful bidder. Once the hammer drops the successful bidder is legally obligated to purchase the property.
Advantages of an auction include:
Disadvantages of an auction include:
Having said all of this, auctions are a lively place and can be a little stressful if you are the Vendor. It’s a choice that can be on the table, but it’s down to personal circumstances.
If you’re a buyer, an auction is an exciting prospect, but always make sure that you do your homework and never go in blind. Above all, keep to your budget, it’s so very easy to get carried away in a bidding battle!
John came and valued our house and was very honest about what price we would expect and what we could do to speed our sale up as we asked for a quick sale. The whole process was super easy thanks to John and Debbie, they were both amazing and you could tell they had great knowledge of the housing market.
Aimee & Luke
2nd Floor Rothley House
Coalville Business Park
Leicestershire LE67 3NR
Registered in England and Wales number: 9427208. Registered office as above.
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