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So why do Vendors sell by auction?

So why do Vendors sell by auction?

Stags have seen a dramatic increase in the popularity of auctions, particularly in the western region of their domain. The number of lots offered increased by 93% from 2015 – 2016, yet across the firm they maintain a 90% success rate, well above the industry average. Auctioneer and Associate Partner, Andrew Ranson, who covers the whole of Cornwall and the Devon borders, analyses some of the advantages of Auctions:

• Auction sales suit a range of property types, particularly cottages requiring renovation, development opportunities, agricultural land and farms, and also unusual properties, especially those that are difficult to value.

• At the fall of the gavel a legally binding contract is exchanged. This avoids the delays and possible downward negotiations that are often experienced when selling a property by private treaty.

• The sale is conducted in a very public and transparent manner and can be helpful to charities, trustees, executors, public bodies, etc, who need to demonstrate they have achieved the best price on the day. Sometimes an auction is an effective way of ensuring a joint owner is seen to pay a fair price, when buying from their joint owners.

• Auctions can regularly achieve a higher price than other methods of sale, particularly when two or more bidders are very determined to buy the same property. Just recently, we sold a small parcel of land for 29% above its reserve and a cottage for renovation for £39,000 more than the top end of the guide range.

• An auction provides a definitive date for both exchange of contracts (at the auction) and completion, which can be particularly helpful to vendors depending on the sale proceeds.

• Other properties can have various legal complications that in a private treaty scenario, buyers’ solicitors can be very difficult to satisfy. The auction process is an excellent way of focusing buyers’ minds and concludes with a legally binding contract at the auction.

• Stags auction properties receive a very wide exposure to the market. This, together with distribution to an extensive mailing list of buyers, can generate a momentum that private treaty sales rarely achieve.

Stags property auctioneers have a wealth of experience in understanding what types of property sell well by auction and are highly skilled in achieving and regularly exceeding vendors’ expectations.

Please contact Andrew Ranson, if you think you may have a property that would suit an auction sale, on 01566 774999.