Different ways to sell your property in Sprotbrough with Laura 🏡
Most people choose to sell their property through private treaty (on the open market), which often involves using an estate agent like me to help. Other methods are part-exchange (often when buying a new build property.) or auction. (online or traditional.)
Most people choose to sell their property through private treaty (on the open market), which often involves using an estate agent like me to help. Other methods are part-exchange (often when buying a new build property) or auction(online or traditional)
Let me explain these different methods below 👇🏼
Private Treaty
Private treaty on the open market is where a property will be advertised with an asking price and the buyer will submit an offer to your estate agent to buy the property.
Once an offer has been accepted and an agreement is reached, a contract of sale will be issued through solicitors then enquiries (questions) will be asked by the buyer and searches will be performed before exchange of contract. The exchange of contracts will only happen once the buyer has completed their research, arranged any mortgage or funding necessary.
Both parties are only legally committed to the sale once the contracts are exchanged, up until this time if circumstances change, either the seller or the buyer can pull out at any time.
Auction
A quicker way to sell your property is through an auction. There are two types of auction (Traditional and Modern method.)
Properties that are sold at auction are often in poor condition, have structural problems, can not be mortgaged, are tenanted or difficult to gain access too.
Auctions are normally seen as an opportunity to buy or sell quickly, often below the true market value, however this is not always the case. Prices can often far exceed expectations if a bidding war begins due to multiple bidders being interested.
The property will be given a guide price and a starting bid so that the seller still gets a good price for the property. You can also set a reserve price, which is generally not disclosed, and is the minimum price you allow the auctioneer to sell the property for.
Once the hammer falls, the buyer with the highest bid is committed to the purchase. The contract is ‘exchanged’ on the fall of the hammer, so from this point you cannot pull out. Auction completions are a lot faster normally taking 28 days to pay the 90% balance.
Modern Method of Auction
Modern methods of auction normally take place online and a non-refundable reservation fee is paid. (A percentage of the agreed sale price around 4.5%) This reservation fee is not included in the sale price it is additional. Paying a reservation fee shows commitment from the buyer as they are less likely to pull out of the sale if they have paid a substantial amount of money up front.
The buyer will then have an exclusive 28-day window to exchange contracts and then a further 28 days after that to complete the transaction. This differs from the traditional auction method where contracts are exchanged almost immediately.
If you need any other advice on selling your home or different ways to sell your home,
