Property Market & Auctions

Selling commercial property at auction has become increasingly popular as it allows the seller to generate the maximum amount of exposure and achieve positive results. If you are interested in selling your commercial property by this method, the following information will highlight some of the benefits of using commercial property auctions.

More information on commercial property auctions

Faster Transactions 

Commercial auctions are normally a much faster way of selling your property as opposed to using the traditional private treaty method. The whole process can often be completed in under six weeks which is very useful to sellers who want to dispose of a property in a short period of time.

Broader Exposure In The Market

An experienced auctioneer can help to provide a property with the most exposure possible in the market. Prior to the auction, the auctioneer will include the property in the auction catalogue and advertise it in the press and online. Auction houses also have contact with real estate investors who are looking for properties which can be a good way of finding a buyer quickly. 

Higher Success Rates

In general, auction houses tend to have very high sale rates for commercial properties, and even properties that fail to attract bidders are normally sold within a short time after the auction. Selling commercial property at auction also provides the seller with a good opportunity to achieve the best possible market price. 

Greater Certainty and Security 

Once the auctioneer drops the hammer, the buyer is legally bound to purchase the property and the contracts are immediately exchanged among the parties. This provides the seller with a measure of security in knowing that the sale will be completed within the next 28 days.

There are many benefits in selling commercial property at an auction but sellers should be aware of how the process works from beginning to end. The auction house will set a reserve price for the property. The property will not be sold below this reserve price, however, the auction market can be volatile sometimes and there is no guarantee that the property will sell for the price that the seller is anticipating.

In addition, sellers should know that auctioneers charge a commission for selling a property at auction, which is normally a percentage of the property's sale price. There is also normally an auction entry fee to cover the auctioneer's costs, so sellers should inquire about these fees when signing on with an auction house.