Thousands or properties are sold at auctions every year and many people have hailed them as a fast and efficient way to sell your property. However, there are many potential pitfalls to an auction sale that have not been widely publicised. Auctions can leave people in a worse situation that when they set out to sell their house and people selling this way often leave themselves open to be let down by the buyer. In spite of this, the auction house will still demand their fee, even if the transaction is never completed.
1. A completed sale is not guaranteed – if the highest bid or offer does not exceed the ‘reserve price’, then it will not sell. Reserve prices are often set too high which makes a sale very unlikely, however the auctioneers will still want their fee
2. Pay fees upfront – Some auction houses want to be paid their fees upfront, which results in them being poorly motivated to effectively market your property as they have already been paid
3. The auction company may bring dozens of auction bidders and people who may be pretending to be buyers to you property, which could cause an invasion of privacy
4. Most people who attend an auction are only there to find themselves a bargain, which means that many of the properties are unsold or undervalued
5. You could wait an average of 3 months to sell in an auction with no guarantee of success
A SALE IS NEVER GUARENTEED: If a bid does not meet the "reserve price", then your house will not be sold. The main issue is that reserve prices are typically set far too high which can make a sale a dim prospect. Even so, sale or no sale, the auction house will still demand their fee.
HAVING TO PUT FEES UPFRONT: Most auction houses will demand their fee before your house is even sold. Therefore, you could find yourself out of pocket without even having sold your property. The fact that auctioneers demand a fee in advance can also affect their motivation, with the result that you don't get the high quality service you deserve.
BREACH OF PRIVACY: An auction house will still bring people in to view your property, which can result in a major invasion of your privacy.
LOW OFFERS: People attend auctions for one reason: to find a bargain. Properties sold at auction houses, therefore, almost always go for significantly less than they are actually worth.
TIME: The action house process can still take up to three months to complete, leaving you hanging on for a sale, despite receiving less money and having to fork out excessive auction house fees.
Instead, contact Local Property Buyers for a free, no obligation offer and avoid the hassle that auction houses bring. We guarantee a quick sale in as little as four weeks; that your privacy will remain intact; and no fees. Moreover, once we agree a sale, you can rest assured with the knowledge that the sale will definitely go through.
Interested in hearing more? Contact Local Property Buyers now!
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