16th February 2021
What are Buy It Now auctions?
If you are looking for a quick sale, then it doesn’t get much quicker than selling in a property auction. But how do you choose which auction type is best for you? Do you go for a Buy It Now auction with a fixed price, an Auction Event with an auctioneer at the rostrum or a Timed Auction with 24/7 bidding?
As you may imagine, our Buy It Now auction properties are exactly that – available for you to buy now. With most auctions, competitive bidding drives up the sale price over the agreed reserve price, but with Buy It Now auctions there’s a fixed price and one bidder. This means bidders can click to purchase at that price with no negotiation or risk of being gazumped. A reservation agreement or exchange of contracts takes place immediately, meaning the sale is secure.
It’s an auction method that is becoming increasingly popular too. In fact, we have seen a 50% increase in the number of properties we are selling in Buy It Now auctions year-on-year.
Why should buyers purchase in Buy It Now auctions?
One of the great benefits of any type of property auction is that it’s quick and it’s transparent. Buy It Now purchases could not be a better example of this – the property is advertised at a fixed price and you bid at that price. There’s no competitive bidding with other interested parties, plus both you and the seller are legally bound to that sale immediately – no gazumping or gazundering here!
It’s very similar to the way you might purchase from an estate agency. With private treaty sales you agree to the price the seller wants and you exchange contracts and complete the sale. The big difference between the two is that private treaty sales can take over 12 weeks to complete from the sale being agreed, while Buy It Now auction sales can take only 20 working days from the same point.
In addition, with Buy It Now auction properties, the seller creates the legal pack up front so any potential bidders will be in full possession of all the relevant details and can get a full picture of the property prior to committing to the purchase.
As a seller, why choose a Buy It Now auction?
As mentioned before, auctions are often based on generating competitive bidding to result in the highest sale price. That’s an attractive proposition for many sellers, however in order to achieve that competitive bidding environment, sellers need to set an attractive – and sometimes low – guide price to generate interest. This doesn’t mean you will sell for less than your reserve price (the lowest price you must achieve), it simply means you have to trust the auction bidding process to start low and climb up.
It’s a calculated risk that thousands of sellers every year are willing to take, however some sellers simply wish to sell quickly and achieve a set price to fund their future plans. They don’t want to watch the bidding unfold on auction day and experience that part-excitement part-anxiety that comes with it. For those sellers, a Buy It Now auction is perfect.
Sold in only one week
This mid-terraced property at 49 Winsford Hill, Furzton in Milton Keynes sold recently in a Buy It Now auction in partnership with Belvoir estate agents. The seller of this two bedroomed property was moving away and didn’t have time to manage the sale so decided to try a Buy It Now auction where no negotiation was required. Only a week after it went live online it sold for £175,000 on a conditional auction contract. A reservation fee was paid immediately which secured the sale and avoided any chance of fall through.
To start enjoying all the fast and faff-free benefits of Buy It Now properties with SDL Property Auctions, use our Property Finder to search for the type of lot you’re looking for and place your offer.