30/10/2014
Why sell a property by auction?
Selling both commercial and residential property by auction offers a number of advantages when compared with a traditional sale.
1. The fall of the hammer constitutes a legally binding contract, which is formalised by a signature on the Memorandum of Sale, which forms part of the catalogue. This avoids the delays and possible downward negotiations that are often part of buying and selling property through private treaty.
2. The sale is conducted in a very public way, and thus is the best way to ensure a particular property has been properly promoted and sold at the best price.
3. The auction provides definitive dates to work to, with a completion date usually set for 28 days after the auction. This may be particularly useful where the vendor is depending on the sale proceeds and it also concentrates the competition for the property.
4. Selling by auction will provide your property with wide exposure to the market. The auction will be heavily advertised in the property press leading up to the auction date and catalogues will be distributed to an extensive mailing list of buyers and agents. This should ensure competitive bidding, and in turn provide the best price available.
5. Certain ‘unique’ properties are often difficult to value, due to their special nature, and there can be no better way to achieve a property's market price than by selling in an auction.
