24th July 2023

What is the best way to sell a property?

When it comes to selling your property, there are several different avenues that can be taken. Some may choose to go through the traditional route of selling their property through an estate agent, however, this can be a lengthy and complicated process. Many people prefer to make a quick sale on their property, and an auction is the perfect way to do this. 

When deciding which is the best method to sell your property, you’ll need to consider the pros and cons of each method. Typically auctions have a high success rate, and provide a good balance of efficiency, speed, and fair pricing. To help you figure out whether this is the right option for you, we’ve detailed the ins and outs of selling by auction below.

What are the different ways to sell your property?

There are two main ways to sell your property. The first is on the open market with an estate agent who will work to market your property to a focused audience of interested buyers and negotiate offers on your behalf at the cost of a fee. To generate the highest possible sale price, offers made by interested buyers will not be disclosed to other potential buyers and the purchase process will require involvement from the seller to negotiate a price they’re willing to sell for. Selling this way can be subject to buying chains which can make the process quite lengthy. 

The second option is to sell by auction which presents a number of varied options regarding fees and methods of sale. Auctions aim to sell your property quickly and at a great price. They attract a diverse range of buyers who partake in competitive bidding to secure the property which makes the process much more transparent for both sellers and buyers. Unlike estate agents (with the exception of sales in Scotland), the highest bidder is also legally bound to the sale, meaning buyers are protected from being gazumped, and sellers are offered more protection from buyer drop-outs. 

What are the advantages of selling a property by auction? 

There are many benefits of property auctions which makes it an attractive option for both sellers and buyers alike. Everything from the quick turnaround time on completion to the fast and transparent process has contributed to its growing popularity as a sale method. When taking a look at each of these factors in more detail, it’s easy to see why selling by auction is one of the best ways to sell your house or other property.

Speed

One of the most common questions potential sellers ask is ‘how long does it take to sell a house?’, but the answer depends on your method of selling. Typically, when selling through an estate agent it can take between 14-23 weeks to complete, yet an auction can lead to a legally binding sale within 6 weeks. Buyers are required to pay a reserve fee or deposit upon successful bidding and are prohibited from not completing the purchase, which means that the sale of your property is very unlikely to fall through.

Simplicity

Another positive benefit of selling by auction is that the whole process is more convenient and faff-free. For auctions to work effectively, there needs to be set time frames and genuine commitment from buyers and sellers. You’ll know exactly when the auction will take place, when to submit your information, and when to set things like reserve prices. This also means that you have more control over the sale, especially when compared to selling via the estate agent route.

Certainty

Auctions have a high rate of success and, with an exceptionally minimal fall-through rate, sellers are granted greater certainty. Additionally,  since the auction process is completely transparent for all parties involved, there are no nasty financial surprises during the purchasing process. Overall, selling by auction is the best method if you want certainty and low fees that you can easily account for in your budget before going to auction. 

Transparency

At SDL Property Auctions, we pride ourselves on providing a clear and transparent process for both buyer and seller. We keep our guidance accurate and honest to ensure that the process of selling runs smoothly, and aim to keep it simple. Lots included on our website include a legal pack with a summary sheet of buyer fees, so both parties can prepare accordingly when setting a budget. This clear line of communication and detailed information makes selling by auction attractive to those looking to make a sale on a property.

Flexibility

Auctions have more options when considering how to sell, especially compared to estate agents which often take control of the selling process. When it comes to selling your property by auction at SDL Property Auctions there are two different methods to choose from, live-streamed auction or Timed Auction. Both of our methods are online and offer a quick and transparent process, but the way they are conducted is slightly different. Other auctioneers may also offer a physical auction room where you can attend in person.

With either of these auction types, your property will be sold under either a conditional sale or an unconditional sale. A conditional sale means that buyers pay their reservation fee (in addition to their deposit) as soon as they’ve won the auction, they then have an exclusivity period in which to complete the sale. This reservation period is usually 60 days, unless specifically requested by the seller. However, most sales by auction will be unconditional, which requires the buyer to pay the deposit and exchange contracts on the day, and the sale must be completed within 30 days. Our full guide on conditional and unconditional auctions is available to help you choose which selling option is best for you. 

Is it best to sell your house by auction or by an estate agent?

As with any method of selling, there are going to be pros and cons, and deciding which method is best for you is entirely personal. Whilst auctions offer a quick and convenient way to sell, some people worry about the auction process of competitive bidding as they feel it could be stressful. On the other hand, with a sale via an estate agency many sellers worry that it will take a long time to sell and will impact their lives for many months. 

Which method offers the highest price?

The answer to this question really depends on the property and the interest it generates. Traditionally, many people think that estate agents can negotiate a higher price by having access to a network of targeted buyers. However, auctions are becoming an increasingly popular way to sell property and prices are driven by competitive bidding from a number of interested parties. This means that a house at auction will often outperform estate agent sales and go for higher prices, but of course, this is not a guarantee. 

Which method is fastest?

Selling by auction is undoubtedly the fastest way to sell your property. Estate agent sales can be very lengthy and are subject to buying chains which also increases the risk of deals falling through. The process can be frustrating if you’re hoping to make a quick sale. On the other hand, this extended length of time gives estate agents more time to generate interest in your property and negotiate with buyers for a higher price. At a base level, deciding which method is best comes down to whether you want a longer selling process with no obligation to accept an offer, or a fast legally binding sale that will generate a good price with minimum fees.

The primary motivation for choosing to sell by auction is the quick and efficient process which always results in a fair price. However, as property auctions are increasing in popularity, high prices can also be achieved. The high success rate and stress-free approach is particularly appealing to sellers with unique lot types including land, residential housing in need of development, or commercial properties, as the range of buyers that auctions attract is typically wider. 

Is an auction the best way to sell a property?

Only a seller can decide which is the best way for them to sell their property, but it would be difficult to find a more convenient and faster way to sell than by auction. The legally binding contracts have a set time scale with no chains, attracting many investors and cash buyers which is ideal for sellers who need an exact time frame of when they can expect to receive their money, as well as generating an attractive price. 

As with any sale, a valuation takes place to determine the price that the property is worth. Auction valuers have excellent knowledge of the property market due to the vast array of property and land that they sell, so you can be sure their experience will get you the best price possible. Sellers are also able to set a reserve price for an auction sale, so you can ensure that you don’t have to sell your property for any less than you wish to.

If you’re hoping to sell your property by auction, why not get started with a free sales valuation from one of our experienced team members? Alternatively, if you have any further questions regarding the selling process you can contact us with your queries and we’ll be happy to help.