If you need to sell your property quickly, the two quickest forms of property sale are selling via a house auction and selling to a property investment company. Here, we will look at the advantages and disadvantages of both options so that if you ever need to sell your property quickly, you can do so using one of these two methods.
Selling via House Auction
A real estate auction or a property auction is one of the most influential and innovative way of selling a house, especially if that house has been on the market for a while. It is a public process conducted by companies such as Barnard Marcus Auctions in which your home is presented to those that attend the auction. Those that are interested in purchasing the property engage in a competitive bidding process through which the property is sold to the highest bidder.
These auctions benefit both the buyer and the seller. Below are some of the benefits to the seller and the buyer.
For the Seller
- Assurance that the house will be sold at its true market value
- Assurance that the house will most likely be sold at the end of the auction
- Less costs involved in the sales process
- Competitive bidding can result in a higher sales price
For the Buyer
- The buyer determines the end purchasing price
- No long negotiation periods
- No long and stressful meetings with buyers
- Properties are sold at a fair market value
Tips for Selling at an Auction
Below are some tips for when using auctions:
- Try to obtain auction catalogues to see which types of properties are normally sold via auction and get an idea of whether your house is likely to auction well.
- Set a realistic reserve price
- Find out how many bidders are anticipated to attend
- Be prepared that there is a possibility that your house will not be sold
- Never be afraid of negotiation by open auction, after all this is the main purpose of selling through an auction.
Selling via Property Investment Companies
Some companies buy your house for cash. These are known as cash property buyers and have become one of the most popular house sale options, especially for those who need a fast and guaranteed sale. This can include people who are facing repossession or divorce. These people urgently need to sell their property and cannot afford to wait until it is sold.
One of the benefits of cash property buyers is that they will buy any property in any location thus allowing your property to be sold within a few weeks, this includes the legal transfer of the property. However, these companies do not give you the full market price. Instead, they give you approximately seventy to 80 per cent of the market value, but to those needing a fast sale and instant cash, agreeing to seventy or eighty per cent is more than welcome.
Alternatives to selling your property
Instead of selling your property, there are ways to realise a return on your investment. Equity release loans are where a lender offers to buy part of your property. It comes in the form of a mortgage with many different payment options. Another way of creating an income from your property is through renting. You could either rent your property to tenants on a yearly basis or, if you wished to make quick cash without the need to move out of your home permanently, then you could choose to use a property management company like Hello Guest that specialises in short-term lets.
Beware of Scam Property Buyers
Although investment property buyers offer the ultimate solution to all of your house-selling problems, they have developed a terrible reputation. Many people sold their property to these buyers and either end up losing their property or getting almost nothing for their property. The issue is that this sector is still unregulated in the United Kingdom and as a result many unethical operators have joined the market.
Below are some companies that are most likely to be scammers:
- Companies that charge a very large valuation fee
- Companies that are undervaluing your home
- Companies that do not have cash readily available and promises to pay by cheque or later on
- Companies that are promising you 100% of the market value
These will most likely reduce their offer significantly before the contracts are exchanged, and as you are already engaged with them and probably running out of time, you have no other option but to accept the reduced offering. See https://cyberfraudcentre.com/beware-of-conveyancing-scams-how-fraudsters-target-home-buyers
The # 1 tip when selling to cash buyers
The number one tip is to be very cautious when choosing your buyer. Make sure that you ask for references and speak to previous customers so you can know how their experience was and whether they advise working with the company or not. Ask for proof and if you are being denied the proof then there is a big chance that the company is a scam and you should not proceed with the sale further otherwise you might end up losing your house.