Although Covid-19 hit many of us in different ways in 2020, the housing market was at the most buoyant it had ever been, stamp duty holidays were put in place and mortgage rates decreased, with limited properties coming to the market, it was very much a sellers’ market with purchasers’ majority of the time, paying over guide price to be able to secure properties. Although the market is still moving and properties are selling, some are still going to best and final offers, it is very much starting to get back to “normal” times and providing sellers with the best advice on strategy is key for success. As the market changes and a variety of properties continue to launch online, one thing that continues to thrive and improve is the auction way of selling.
As an agent, we work alongside the largest auction organisation within the United Kingdom, they have recently also incorporated the second largest auction house ensuring that their platforms reach larger and wider audiences. Not only having their platforms but working alongside ourselves advertising on our website and the main portals, as well as benefiting from our expert advice and accompanying viewings throughout the process.
The modern method of auction is suited to a range of sellers and offers a 0% fee for them to sell, it is also a cost-effective way of achieving a sale. Many people assume auction only works based on the type of property and attach auction to “run down” or “tired properties” which is incorrect and most certainly has more to do with seller circumstance. Offering a quick and secure option, the statistics for fall through rates are between only 3-4% whereas on the open market it is 30-40%, this is because a buyer will pay a non-refundable reservation fee to secure the property once their bid has been accepted, which also benefits the buyer as once they have paid their non-refundable reservation fee, it saves them from being gazumped, something which is extremely common on the open market, more so since the pandemic.
The reason auction is so successful in its approach is that a more “aggressive” form of advertising and pricing strategy is used to be able to gain attraction and to succeed on the best price possible, advertising at a “starting bid” however setting a “reserve price” which if met is what the property will sell for and the vendor will take away, because of the platforms and strategy used, if the property is worth more, it will most certainly sell for more within an auction.
The quickness for the auction is based on a 56-day completion date set from the day the buyer’s solicitor receives draft contracts and this can be achieved as an “auction pack” is prepared on behalf of the seller which provides buyers with legal documentation for the property prior to bidding, such as land registry and searches. Dates for completion within the open market have been very varied with most sales in and around the Northeast alone taking approximately three to four months, some being longer.
The modern method of auction will always continue to grow and offer an option to achieve bigger and better prices, timescales and secure sales for vendors and buyers, and as a result of this, we’re very fortunate to be able to offer this sufficient way of selling throughout different marketing climates to our existing and new clients.
Thinking of selling your home and would like to discuss the various approaches? Contact our team on 0333 920 2220.