We have teamed up with the regional land and property auctioneers Clive Emson to sell a couple of properties on the Isle of Wight, a house in Eastleigh and nine lock-up garages in Cosham.
This activity has prompted us to outline some of the benefits of selling at auction and how the process works.
The first point to make is that auctions can deliver a result very quickly with a deposit secured, the buyer committing to the purchase and the way clear for an immediate exchange of contracts.
In general, it can take a few weeks to do all the necessary paperwork and ready the auction entry but once that hammer lands, it’s legally binding so there is no risk of the buyer pulling out, the deal falling through or you having to renegotiate on price.
Success rates at auction are also very high with around four out of five properties attracting a buyer.
As you know the date of the auction in advance, you also know the eventual completion date which will depend on the conditions of sale you agree with the auctioneer.
You also have reassurance over the minimum price the property will sell for. That’s because, as the seller, you set the reserve price. Of course, the ideal outcome for you will be buyers bidding against each other so you can reach a higher figure.
Auctioneers want their initial valuations to help towards their success rate in taking on properties to sell so it’s always in their interests to be as accurate as possible in agreeing the reserve price with you. That gives you an honest, realistic position from which to start the auction process.
Another advantage of selling a home at auction is that you tend to find the prospective buyers involved are experienced and knowledgeable about property. They are more likely to be cash buyers and so not reliant on arranging a mortgage. And they may well be investors or developers who can see the potential of the property and not be put off by the kind of issue, such as an unusual feature, that another buyer may worry about.
Auctioneers will also welcome the opportunity to sell a tenanted property. For an incoming buyer with investment ambitions, that means they can anticipate rental income from day one. And if, for whatever reason, you don’t find a buyer, you still have your tenant on board to keep your payments coming in.
Turning to our activity with Clive Emson Auctioneers this month, it’s an online auction that ends on Wednesday, 21 September, with the bids opening 48 hours beforehand.
Currently let at £42,460 per annum, and with a guide price of £400,000-plus, a mixed freehold investment of four flats and two commercial offices is located at 24 and 26 Carisbrooke Road, Newport, Isle of Wight.
We’re also marketing a freehold building on the Island, arranged as five residential dwellings, on 0.6 acres of land and guided at £280-300,000.
It’s called The Brannons and is located at Station Road, Wootton Bridge.
The Eastleigh property, a two-bedroom terraced house at 276 High Street, has a freehold guide price of £165-175,000.
The nine garages in Cosham, situated to the rear of houses on Hawthorn Crescent and the mainline railway, have a freehold guide price of £150,000.
For more information on these properties, please see the auction catalogue at https://www.cliveemson.co.uk/.
If you would like to discuss selling your property, whether by auction or not, come and talk to us. For more information on our support for sellers, visit our sell pages.