Auction Properties.

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Markove

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I wonder what the informed viewpoint is in relation to selling a property at auction (BidX1) as opposed to the standard manner of hiring an estate agent etc. The property in question would be a duplex apartment built in the 1990's, located in a city centre area. Is there a better chance of achieving a higher sale price at auction and how would the fees involved compare - excluding solicitors charges ?
 
My brother is forever sending me properties on BidX1 they all tend to have poor photos and a distinct lack of information.
Is the purpose of using them to cut down on fees? 1.35% isn't that much and traditional EA will bring more traffic to your door. Ask friends and family who are looking to move at the moment how many of them have looked at BidX1, likely answer is very few.
I'd just use the normal channels.
 
BidX1 and other auctions will still have a percentage fee to be paid. BidX1 don't say what that fee is on their site, suggesting it's open to negotiation, but I'd imagine it would get smaller for higher value properties.

Auctions are often used to dispose of problem properties, and they're often only open to cash buyers, so you could be significantly reducing the potential market.
 
I have bought at these auctions but not sold. As dereko has said I'd think that most EA would charge a higher fee and you are limiting your sales market with Bidx1.

If you think your property will be attractive to cash investors then you are probably OK with Bidx1, if you think it's going to be more attractive to owner occupiers with mortgage approval then maybe not.

If you want a quick sale Bidx1 will also be suitable, if you are in no rush then the traditional method may be better.

Having been involved in these auctions there is definitely an element of gambling, both for buyer and seller. Setting the reserve is crucial for the seller, too low and the property could go at that price, however alternatively a low reserve can generate interest and with multiple bidders there can be massive increases to reach the selling price.
 
Thank you. It seems from a buyers perspective there are bargains to be had at auction in that many properties seem to go for near enough the reserve price and these would not necessarily fall into the "fixer upper" category.
 
Markove said:
Thank you. Could you list what you believe some of those advantages to be?
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Just a few I can think of are:
  • Sale concluded very quickly on a date you choose
  • Lower advertising fees as no brochures to produce or MyHome/ Daft/ newspaper ads to take out.
  • No endless stream of viewings
  • Once the auction is done, it's done. The successful bidder is legally obliged to complete the purchase
  • Following from above, it's a good way of selling problem property as prospective buyers don't get the chance to have surveys performed
  • If there are a few people interested, the adrenaline rush may push an inexperienced buyer to pay over the odds
 
I would have thought that if you're selling a bog standard house without issues, as it seems you are, that the traditional approach would work best.
 
dereko1969 said:
I would have thought that if you're selling a bog standard house without issues, as it seems you are, that the traditional approach would work best.
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It is a standard type of dwelling albeit in a less than picturesque city centre location .
 
Markove said:
It is a standard type of dwelling albeit in a less than picturesque city centre location .
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Anyone potentially buying this at auction is going to have taken a look at the area, so that will already be factored into the price they are willing to pay.
 
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