When you need to sell a home quickly, auctioning might seem like a good idea. After all, you’re guaranteed a sale in only 28 days. However, there are some drawbacks to auctions that you may not have considered, and a reason to look at the alternatives to a house auction. UK residents sell their homes at auction by the thousands; should you join the crowd? Here are the reasons you might want to look into house auctions, why you might not want to sell your property that way, and what you can do if you’re unsure about auctions.
Why Should You Auction Your House
If you have a problem property with too many issues to sell, auctioning is a great way to get rid of it. When you auction, you can sell your house in as-is condition with no repairs or renovations. You’re guaranteed to sell within 28 days, and auctioning your home can make sure you get rid of a problem property cheaply and easily. However, there are some real detractors to selling at auction that an auctioneer might not tell you before the sale.
Why Should You Not Auction Your House
If you’re looking to sell your home at auction, be mindful of what your auctioneer isn’t telling you. Homes that sell at auction often sell for far under their market price, and with that kind of money, you can’t repay existing mortgages. Your bidders at an auction are looking for a good deal– if they wanted to pay market price, they’d be on Zillow instead. If you sell your home at auction, you’re not going to get a good or fair price for it. Even worse, auctions often require you to pay a fee for your house to be sold there. This will drag more money out of your pocket, and often reach up to hundreds of pounds just for your home to even be considered for the auction. Selling your house at auction is expensive and doesn’t earn you much profit, but it can be useful only for its quickness and the fact that it lets you get rid of a problem home you might have difficulty selling on the open market. When you sell at auction, you can’t negotiate about the price of your home or even when you need to move out — as soon as the hammer falls at the auction, your home isn’t your own anymore, and you can’t argue to get more money out of it. That’s just the end, and you’ll have to turn over the title soon.
What You Can Do instead of A House Auction in the UK
If you’re not sure you want to sell your home at auction anymore, that’s perfectly fine. Instead, you can opt to sell your home with a cash buyer. Cash buyers are a great way to sell your home, because they’re easy, fast, and get you the money you’ve earned. Cash buyers never make you fuss with mortgage lenders and loans because they already have the money to purchase your home outright. Cash buyers purchase in as-is condition, which means that no matter what your home may look like and no matter if it passes a home inspection or not, you can sell your property with a cash buyer. Even better, cash buyers will give you just an under-market price for your home, which is leaps and bounds better than what you’ll earn off of your house at auction.
Should You Auction Your UK House?
When you’re looking to sell your house in the UK, auctions are only sometimes the way to do it. If your home or property is worth money, or you have a mortgage in desperate need of repayment, a house auction in the UK might not be the best way to earn that money. Instead, working with a cash buyer will allow you to sell without repairs or repayment, quickly, and easily. Cash buyers give you the market price for your problem home, and you can move without any fuss or muss. When you’re looking to sell your home, keep in mind that cash buyers are oftentimes a better bet than auctions. Still, though, there are scenarios where auctions can come in handy, so the next time you just need to get rid of the property, think of an auction.