Andrew Binstock, director of property auction specialists Auction House London shares his top reasons for selling via auction
1. Forget the high fees
While high street estate agents can charge you anywhere up to 4% plus VAT of the property's price in house-selling fees, auctioneer fees are no more than 2% plus VAT.
2. No fixed asking price
Because of competitive bidding, your property could achieve a higher price than expected. You will always agree a reserve price with your auctioneer, which will protect you from selling it too cheaply.
3. Extensive marketing
There’s a common myth that properties going for auction will only be advertised in the auctioneer’s catalogue. In fact, all auctioneers will promote your property across the country, by listing it on the big property portals like Zoopla and Rightmove and in local papers. This will ensure you have maximum exposure ahead of the auction.
4. Saves time
Selling at auction is fast - the process takes approximately two months from start to finish. Your auctioneer should run through the entire process, plan open days for prospective bidders to view the property and set the date of auction. Once the hammer falls, expect to hand over your keys 28 days later.
5. No gazundering
Once the hammer falls, the buyer is legally bound to the sale and must pay 10% deposit of the total sale price of the property before leaving the auction house. This avoids any chance of being gazundered (where the buyer lowers their offer last minute).