Selling a property can be a stressful journey with numerous twists and turns but making timely decisions can help avoid unnecessary complications. While most people initially turn to traditional methods like using an estate agent, alternative methods can be more appropriate and are worth exploring sooner. Let’s look at an example showing exactly how auctions can rescue unsold properties from the traditional sales market, and why they shouldn’t be considered a last resort.
Example:
🏡 Lot 36 – 27th April 2023 Auction
📍 Islington, London
The seller of this stunning Georgian home in Islington, London, initially listed the property with an estate agent in October 2021 for £2.6 million. After a long year of ups and downs, the first sale fell through due to a structural defect. Frustrated by the delays and eager to move, the seller pulled out all the stops, instructing two additional agents on a multi-agency basis, and reducing the price from £2.6 million to £1.8 million.
By April 2023, despite the efforts of all three estate agents, the property remained unsold, and the decision was made to explore the auction route. Within three weeks of initial conversations with us at Network Auctions, after a stressful 18 months for the seller, the property was sold at auction on 27th April 2023. The auction generated significant interest, attracting 25 bids and driving the final price to an impressive £1.6 million. Happy sellers, happy buyers, and happy auctioneers!
The lesson here? It was clear from early in the process that the structural issues detected would make for a more difficult sale. Our advice to the seller included an appraisal of the value of the house post repair, an estimate of the cost of works and explaining why a profit had to be factored into the price to attract developers and cash buyers. Had the original agent considered auction at this point, the seller could have achieved this positive outcome much sooner.
So, whether you’re a seller or an estate agent representing a seller, don’t hesitate to rethink your sales strategy – it’s never too early to consider all your options!
