Most people are familiar with the concept of a property auction but the benefits for prospective buyers are not always clear. Here are some of the reasons that are commonly mentioned to us:
1. More efficient process.Because legal documents and other surveys are typically prepared in advance of an auction, buyers have access to important information before making an offer.
2. Reduced chance of property chains.Vendors entering lots into an auction are normally in a position to exchange quickly. As such, common open market issues such as property chains are less likely to occur.
3. Representative guide prices.Guide prices are designed to generate interest in a property and promote a quick sale. They are therefore realistic and likely to reflect true rather than perceived value.
4. Firm financial commitment.Once the gavel goes down and you place a deposit on a lot, a legally-binding purchase is assured. The vendor cannot subsequently withdraw from the transaction.
5. Greater control.Finally, as a result of having legal documents prepared in advance of an auction, the vendor and buyer are able to agree completion dates of their own choosing, rather than working to conveyancers’ timelines.