Choosing the Best Method to Sell Your Property: Auction, Open Market, and Private Sales
Posted on 9th March 2024
Selling your property is a significant decision, and choosing the right method can make a substantial difference in both the sale price and the time it takes to sell. The most common methods are auction sales, the open market, and private sales. Each has its advantages and disadvantages, depending on your situation, property type, and market conditions.
In this blog, our Conveyancing Solicitors in Preston explore these methods to help you make an informed decision on the best way to sell your property. If you decide to sell your property, it's important to ensure you speak to estate agents, auctioneers, and other professionals to consider all the options open to you before committing to one method of selling your property.
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Auction Sales
Pros:
Speed:
Auctions are ideal for sellers looking for a quick sale. Once your property is auctioned, the winning bidder is legally committed to purchasing.
Certainty:
Sales at auction are final, reducing the risk of fall-through.
Competition:
Auctions can drive up the price of your property if there is high demand, potentially achieving a higher sale price than anticipated.
Cons:
Costs:
Selling at auction can be more expensive due to auctioneer fees, which are typically higher than estate agent fees.
Unpredictability:
There’s no guarantee your property will sell, and it could go for less than your reserve price if demand is low.
Preparation:
You need to prepare comprehensive legal and property information packs in advance, which can be time-consuming and can increase the costs of a typical Conveyancing matter. Our Conveyancing Solicitors in Preston usually charge £250 plus VAT for the preparation of the initial auction pack, with additional fees payable in the event that the property sells and you require our assistance with the conveyancing sale process.
What type of property are auction sales good for?
Properties that are unique, in need of repair, or likely to attract a lot of interest from investors. Also suitable for sellers needing a quick and secure sale. Our Conveyancing Solicitors in Preston see a lot of probate properties being sold via auctions, or properties in a terrible state of repair, such as those that have been left empty for some time. However, our team are seeing an increase in the number of “good condition” properties being sold at auction, simply to achieve a quicker sale.
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Open Market Sales
Pros:
Wider Exposure:
Listing your property on the open market gives it maximum exposure to potential buyers, increasing the chances of finding a buyer willing to pay your asking price.
Flexibility:
You have more control over the selling process, including setting the asking price, choosing the marketing strategy, and negotiating offers.
Higher Price Potential:
With the right conditions and a desirable property, you may achieve a higher sale price due to the potential for multiple interested parties, although in today’s property market, this is not always necessarily the case.
Cons:
Uncertainty:
There’s no guarantee of a quick sale, and transactions can fall through at any point before contracts are exchanged.
Time-Consuming:
The process can take several months, from listing the property for sale on the open market, to legal completion.
Costs:
You will need to consider estate agent fees, marketing costs, and potentially home improvement costs to make your property more attractive to buyers.
When should a property be sold on the open market?
Sellers looking for the best possible price and who have the time to wait for the right buyer. Ideal for properties in high demand areas or those appealing to a broad market. A lot of residential properties are sold via the open market, and you will often find these listed on selling websites, such as RightMove, as well as listed in the local estate agents’ office or on their website.
Private Sales
Pros:
Cost Savings:
Selling privately can save you thousands in estate agent fees.
Control:
You have full control over the selling process, from deciding on the sale price to negotiating directly with buyers.
Privacy:
Your sale is not publicly marketed, which can be preferable for sellers who value discretion.
Cons:
Limited Exposure:
Without access to major property portals, it can be harder to find buyers.
Negotiation Challenges:
Handling negotiations without a professional can be daunting and may result in a lower sale price.
Complexity:
You will need to manage every aspect of the sale, except for the legal conveyancing process, which can be time consuming and complex.
Can I sell my property to a private buyer without estate agents?
Sellers with a potential buyer already interested, such as a friend, family member, or neighbour, or those willing to put in the effort to market and manage the sale themselves may find a private sale is better for them. Our Conveyancing Solicitors in Preston often experience this with family sales, where one party sells to their child, parents, or other relatives, or sales where a neighbour has expressed an interest in the purchase. Usually, you will need to know the person, or know them as a friend of a friend, for them to even be aware the property is being sold.
Why choose MG Legal, Conveyancing Solicitors?
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Choosing the best method to sell your property depends on your priorities, whether it’s a quick sale, achieving the highest price, or saving on fees. Auctions offer speed and certainty, open market sales provide maximum exposure and the potential for a higher price, while private sales can save on costs and offer more privacy. Consider your specific circumstances, the nature of your property, and your financial and time constraints to make the best choice for your situation.
Once you have agreed a sale on your property, contact our Conveyancing Solicitors in Preston on 01772 783314 or email property@mglegal.co.uk for your competitive, fixed-fee legal quote from a Conveyancing Quality Scheme accredited team of conveyancing solicitors.
Tagged as: Conveyancing, Solicitors in Preston
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