When selling your home, the decision of whether to sell via a property auction or an estate agent is a very important one.
The two methods work in very different ways, and both have their merits. This guide will help you decide which selling method is best for you.
Property auctions
Property auctions allow movers to sell their property via potential buyers bidding against each other.
The interested parties receive all the information about the property’s condition, location, and features before the fast-paced bidding process begins. Investors who want to quickly offload a property frequently use this method of sale.
Faster sale speed
As property auctions have a deadline by which potential buyers must submit their bids, it is possible to complete a sale from start to finish in 5–6 weeks. This does come at a cost though, as there are marketing and commission fees to pay when selling using this method.
Competitive bidding leading to a higher selling price
The fast-paced nature of property auctions creates a sense of urgency amongst buyers, which can sometimes result in a higher selling price than expected. However, if only one party is interested in a property, then there will be no competitive bidding, which could result in a disappointing sale price.
Related: Everything you need to know about buying a property at auction
Complete transparency
As all bidders receive the same information about a property and all have an equal opportunity to make a bid, the process is completely transparent. However, this can sometimes result in lower-than-expected bids, as any issues with the property will be made public to all potential buyers.
Reduced risk of sale falling through
There is a slightly lower risk of a sale falling through with a property auction, as the winning bidder has to pay a large deposit and sign the contract upfront. Unfortunately, even when the contracts are signed, the buyers can still pull out of the deal by forfeiting their deposit, which is usually 10% of the purchase price.
Estate agents
Estate agents use their knowledge and experience in the property market to streamline the selling process for you. This is the most common way of selling a property and is ideal for people looking to move to a new home.
The latest local market knowledge
Estate agents have a thorough knowledge of local property markets, allowing them to properly evaluate the value of a property. This knowledge enables estate agents to provide sellers with an accurate valuation, ensuring that a property is listed at the right price.
Related: How to choose an estate agent
Negotiation skills
When it comes to negotiating with potential buyers, estate agents have the expertise needed to secure the best possible deal. Selling a home via an estate agent takes the stress out of the negotiation process, as they act as an intermediary between parties while protecting the best interests of the seller.
Stress-free experience
Estate agents perform a range of tasks that simplify the selling process, such as conducting thorough property valuations, promoting and advertising the property, and organising home viewings. They also handle all the paperwork on your behalf, making sure your sale is smooth and legally sound.
Accurate pricing
By conducting thorough market research, estate agents make sure sellers do not undersell their home and can even receive more than they originally expected. This is because estate agents always prioritise the seller, unlike property auctions which are more lucrative for buyers.
