There are several ways to sell your property.
Most people go down the ‘traditional’ route of using an estate agent. But there are alternative ways, too.
Two of these are auctions and private sales.
So, what does each of these methods involve? And which one might be best for you?
Read on to find out.
What is a private sale?
Selling your house privately means that an estate agent is not involved.
Instead, you do everything yourself. This includes:
- Marketing the property
- Arranging viewings
- Negotiating a price.
People often use this route when they’re selling to someone they know.
You don’t need support from an estate agent to find a buyer, because you’ve already got one.
You can thus avoid the expensive commission that an estate agent charges.
This route involves extra responsibility, and you’ll need to carry out tasks you might not be familiar with.
A conveyancer is still recommended to have by your side.
What is a property auction?
Auction companies sell items using a bidding process. And this applies to large transactions, such as a property, too.
Your house will be listed ‘for sale’ by the auction company.
Potential buyers will have several weeks or months to visit it on an ‘open day’. They can also get a survey completed.
Once auction day arrives, bids can be made. These usually occur in physical locations, but online auctions also exist.
Bids start at a reserve price. The winning bidder must pay a deposit on the day and then has 30 days (usually) to complete.
Advantages of selling your house privately
No estate agent commission
A perk many private sellers enjoy is not paying any agent commission.
Most estate agents charge around 1.5% of your sale value.
So, a house sale valued at £500,000 represents £7,500. You’ll save this by selling privately.
You are in control
You can control the advertising, negotiation, staging and house viewings.
If it goes well, it’s entirely up to you. And you can fix any problems, as well.
You can sell to someone you know
Selling privately often happens because you know the buyer.
It can feel good to know that your house will be in safe hands.
Transparency over negotiations
Sale price negotiations can take place face-to-face.
This can avoid hearsay and ensure you are always well-informed.
Advantages of selling your property at auction
Sell your house in bad condition
Auctions are ideal when your house is in bad condition.
Perhaps you couldn’t sell the property on the open market, especially if mortgage lenders refuse to lend because of:
- Structural problems
- A short lease
- Pest infestations
- Asbestos.
Buyers at auctions will still make an offer, no matter what.
Get the sale completed quickly
Auction companies can move quite quickly. The sale will often complete within a few months.
From auction day, your buyer has 30 days to complete.
Ensure your buyer doesn’t back out
The sale is binding once an offer is made on auction day.
You’ll receive the deposit, and you can thus keep this if your buyer changes their mind.
Get support from professionals
Professionals at the auction company will support you.
This includes guidance on hosting viewings and deciding on your starting price.
This is reassuring if you’re new to this area.
Will I get the best-selling price privately or at auction?
It depends on the situation.
Most of the time, selling on the open market gets you a better price. If you do this privately and well, you can get more than at auction.
Selling at auction allows you to sell a house that couldn’t be bought on the market.
In this case, the alternative selling price might be zero. In this situation, the auction could be better.
Is it faster to sell privately or at auction?
It depends on the situation. Most of the time, the auction is faster, as it completes within about two months.
But there’s no guarantee you’ll get an offer on auction day.
Selling privately can sidestep some of the time-consuming negotiations and viewings.
But conveyancing must still happen, which takes up to 3 months. Selling at auction is usually faster, assuming you get an offer.
Is it easier to sell privately or at auction?
It depends on your relationship with the person you sell privately, too.
If you’re both on the same page, it may be a smoother process with clear communication. But you’re also all by yourself.
This is daunting if you don’t have professional experience in these areas.
Selling at auction involves support from experts. But you aren’t guaranteed a sale.
You’ll need to navigate the fees, surveys, and hosting open days and know where to start your pricing.
