Is my home suitable for online property auction?
Online property auction is becoming more and more popular for sellers, and it could be just the answer to avoid any housing drama.
There is often a misconception that auctioning a property is only for a specific type of home, but this isn’t the case at all. Homes up for sale via auction come in all shapes, sizes and conditions and, as the stats show, it’s a really great way to sell.
Why choose online property auctions?
There are huge benefits to selling your home via online property auction, from quicker timeframes to more security and the ever-increasing market plus a wide range of buyers.
With this in mind, here are just some of the benefits of choosing to sell through an online property auction, and why your home could be best suited to this alternative route for selling.
- Speed: As a seller, speed is important. Fixed timescales for transactions allow sellers to move forward confidently, knowing all aspects of the deal are moving forward with pace. For the Modern Method of Auction (MMoA), the completion happens within 56 days* from when the contract has been signed, which is around half of the average time taken to close a Private Treaty sale, making it the stronger route if you need to sell quickly.
- Security: The Modern Method of Auction also allows a sense of security. With a completion rate of 95% in comparison to the current 70% rate of Private Treaty, it is a really appealing option for many sellers. A non-refundable deposit^ is required once a bid is successful as well, which allows all parties to feel much more confident about the sale.
- Minimum Sale Price: As a seller, online property auctioning may seem a little risky, but reserve prices ensure you are getting the best price for your property. Sellers set a reserve price which ensures a minimum sale price on a property adding a level of security for sellers and ensuring the house will not be sold below that value.
- Efficiency: The world relies on technology and selling a home is no different. It is important to have easy-to-use technology when managing the sale of a house and auctioning a property online means this is vital. While some may be sceptical of the online world, the iamsold platform uses innovative technology to ensure the best user experience for all clients. Bidding activity is available online 24/7 to ensure your property can be auctioned efficiently.
- A Variety of Buyers: A common misconception of online property auction is that it isn’t very popular, and it will be hard to sell for a good price, but that isn’t the case at all. Using Modern Method of Auction, as opposed to Traditional Auction, to sell your home online gives you access to a much wider pool of buyers for your property. This is because the Modern Method of Auction allows you enough time to arrange a mortgage, whereas the quicker timescales of Traditional Auction limit it to cash buyers. Another benefit of online auctioning is that more people can view your home easily and this only gives you more chance of finding the perfect buyer. From experienced buyers to first-time buyers, there are people looking for all types of property making it much easier to sell.
- No Sale, No Fee: One of the definite perks of going through an online property auction is that if there is a no sale, no fee option. With Modern Method of Auction in particular the buyer typically pays the fee. This ensures maximum support is put into selling your home and allows you to solely put your focus into making a sale, instead of extra fees and costs.
What does an auction property look like?
When most people think of property auctions, they immediately think of a home that needs a lot of work and huge renovations. While this is sometimes the case, it is certainly not a must for homes going to auction. There are a huge plethora of homes from country cottages, city centre flats to suburban family homes. With a variety of different styles and prices available, there is no reason why your home wouldn’t sell through an online property auction. There is definitely not one typical type of home that is best suited to online property auctions – and that’s what makes it so perfect for sellers.
Below are just a few examples of homes sold in 2021 through online property auctions through iamsold. With varying prices and selling points, they highlight just how many homes are up for offer via online property auction.
End of terrace house at Scarborough
- Starting Price: £185,000
- Reserve Price: £200,000
- Sale Price: £232,000
Semi-detached house at Great Bar Birmingham
- Starting Price: £120,000
- Reserve Price: £135,000
- Sale Price: £160,000
Flat on Victoria Road, Deal
- Starting Price: £100,000
- Reserve Price: £110,000
- Sale Price: £120,000
Bungalow at Holbeach, Spalding
- Starting Price: £150,000
- Reserve Price: £163,000
- Sale Price: £173,500
The increasing popularity of online auctions
The latest figures from iamproperty show that iamsold raised over £84.3million through online auction in November 2021, which reflects an almost 60% increase on the previous year*^ – showing the growing popularity of property auctions. With a growing number of sales, now is the perfect time to become a seller via online property auctions.
Online property auctions are seeing a whole host of buyers from experienced investors, those who want to renovate to first-time buyers looking for an alternative way to get on the property ladder. In 2021, 35% of buyers were investors, whereas 40% purchased the property as their own home. With so many more people choosing to go down the auction route, there is an increasing number of buyers making it a great way to sell a home. With an ever-growing number of bidders and partner agents each year, iamsold is now the UK’s largest online residential auctioneer, making it a perfect match for selling your home.
With a whole host of benefits and opportunities, online property auction has never looked more appealing to sell or buy a home. If selling your property is something you’re interested in, take a look at the full selling process by following the link below.