Selling a house can be an anxious and stress filled task. When it comes to selling your house quickly there are two popular options you can choose; you can use a quick sale company or you can sell your property at auction. Both have their own advantages and disadvantages. In this blog post we will explore the differences between selling your house via a quick sale company vs at auction. This will help you make an informed decision about which is the best option for you and your circumstances.
Quick Sale Companies… The Basics
Quick sale companies are businesses that specialise in buying property directly from homeowners. They ensure a fast and hassle free process and the sale is often completed within a matter of days or weeks. They often buy a house, in any condition regardless of what repairs or renovations need doing.
Here are some key points to consider when selling your house via a quick sale company:
- Quick sale companies are known for their speedy transactions. They often complete a sale within 7-30 days, which is a huge advantage if you need to sell the house quickly!
- A guaranteed sale. One of the main benefits of selling via a quick sale company is the certainty of the sale. They don’t rely on market conditions and are not stuck in a chain that could break at any point.
- It may be cheaper. Quick sale companies buy the property in whatever state the property is in. There is no need for costly repairs or renovations. They buy the house as is. This means you don’t need to invest time or money in making extensive repairs with no guarantee of a quick sale.
- Selling your home via traditional methods by opening up your home to the public can feel very invasive. Selling your home via a quick sale company is a very private process and it is only between yourself and the company.
- Fees and costs. Quick sale companies offer speed and convenience but that comes with a cost. The cost is that they will often offer below market value. Also, some companies may charge a fee or commission so ensure that you understand the fees and any other financial impact it may have before proceeding.
Auctions… The Basics
Auctions are another great way to sell your property quickly. Buyers bid on a property that they may or may not have previously viewed and the highest bidder wins the property auction.
Here are some key points to consider when selling your house via property auction:
- Auctions are a very transparent way of selling your house. The bidding process is done in front of any other potential buyers eliminating any negotiations behind closed doors.
- Competitive bidding. As auctions are a public event, this creates a competitive environment which can push prices higher. If there are multiple interested buyers, this can result in a sale for a higher price.
- Fixed Timeline. The advantage of selling your property at auction is that you will have a fixed timeline, which is a significant advantage if you need to sell by a certain date. The completion date is agreed in advance resulting in penalties if either party fails to meet the agreed deadline.
- Market Value. Many properties achieve the market value or higher at property auctions. Keep this in mind when deciding which option you should choose.
- There are costs related to selling at auction such as selling fees and buyer premiums. These are often paid by the buyer, however, the seller may have to pay listing and marketing fees.
Considerations of A Quick Sale Company vs. Auctions
Now that we’ve outlines the basics of a quick sSale company and auctions, let’s dive deeper into some important considerations before making an informed decision:
- Urgency: If you want to sell your house quickly, then a quick sale company may be your best option, as auctions are not a guaranteed way of selling your house quickly. If there are no interested parties on the day of the auction then the property may not result in a sale and you may end up selling to a quick sale company.
- Price Expectations. If you’re looking to maximise your property’s selling price then auction might be a good choice for you. Quick sale companies offer less than the market value but guarantee speed and convenience.
- Property Condition. Quick Sale companies will buy your property no matter what the condition. However, for property auctions, buyers may be looking for more well maintained homes and the selling price at auction may be reflected upon the condition.
- Costs and Fees. Both selling methods have different costs and fees. So ensure that you fully understand the associated costs and fees for each before choosing either selling method.
- Market Conditions. The current state of the housing market could influence which selling choice you make. In a hot sellers market, choosing to sell via an auction may be the most profitable option, as they could fetch a higher selling price. Whereas a quick sale company could offer below market value.
Selling via a quick sale company or at auction both have their advantages and disadvantages. For those wanting speed and convenience a quick sale company may be your best option. Selling via an auction, may be a slower process which may achieve a higher selling price.
Before making any decision, evaluate your financial position, the property’s condition and the urgency in which you want to sell.