Commercial Property Auctions: The Benefits and the Risks of Selling

With more buyers moving from residential property auctions to commercial ones, it’s fair to say that there’s been a rise in the popularity of auctions as a way of releasing investment in commercial properties. After focusing on the benefits and risks of buying at an auction, we now turn to the other side of the process. We have compiled a list of benefits and risks for selling commercial properties by auction – of course, this means knowing whether the property you intend to relinquish is suitable to be sold at auction or not.

The Benefits of Selling at Auction

Selling a property at auction means you can broaden the market and reach more people – some will want to purchase your property for their business, while others are developers and property dealers. So right off the bat you can ensure that the auction has a high chance of success by presenting your property to a wide range of people – exposure like this is a big advantage of auctions, so they shouldn’t be a last resort for selling a property, but the best method for doing so.

You’ll also find that the speed of transaction is far quicker than selling a property privately. The whole process is simple and can take as little as a few weeks, compared to months, which means that everyone, whether or not they have more than one property for sale, can hugely benefit from this process.

If you’re trying to sell your property, you’ve probably worried about whether its buyer will regret the decision and eventually opt out of the process. By selling at auction, certainty is guaranteed, as the buyer is legally bound to complete the transaction.

The Risks of Selling at Auction

Where there are benefits there are usually risks, and selling at auction is no exception. To avoid disappointment, it’s vital that you’re aware of potential drawbacks before going through with the process.

Pricing is a big issue, as if your property doesn’t meet a set price, it won’t be sold, so you need to keep this in consideration – this can happen even if the bids are rising, as this probably means they started low in the first place.

Selling at auction can be competitive and you can absolutely get the best price for your commercial property, but it’s important that you’re aware of the fees you have to pay before even entering the property in the process (which will cover the auction house’s costs, and which have to be paid whether or not your property achieved the set price) – as well as the commission that auctioneers will take from the sale.

 

Selling at auction can be a complicated process at first glance, but it can bring you a wide range of benefits. If you’re still unsure about this and would like to learn more, don’t hesitate to contact us or give us a call on 0208 863 8680, and we’ll be on hand to help you through the process!

Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp
Share on pinterest
Share on email

CONTACT US

LATEST DEALS

Don’t miss out on our opportunities

Advanced Search

Try Selecting Multiple Options to search

Recent Articles:

22 Lockdown Deals Done as opportunistic enquiries surge

In the 3 months since the nationwide lockdown commenced in late March, the Prideview team has dealt with an unexpected …

Read More

Covid-19 debate: Buy now or wait til September?

For anyone looking for investment opportunities, this is the key question of the moment. Listen to these highlights of a …

Read More

Infographic: Pro Tips for Landlords Facing Coronavirus

If you found this useful, check out our full analysis of these issues in our Complete Guide for Landlords Facing …

Read More

Current Opportunities

In Auction
£ 2,350,000

Development Site with Planning, Leicester

510 Melton Road, Leicester, Leicestershire, LE4 7SP
Call for price

Gym & Cafe, Liverpool

Lower Ground Floor, Silkhouse Court, 7 – 17 Tithebarn Street, Liverpoool, L2 2DP
Call for price

Heron Foods, Crewe

Heron Foods, site of former Merlin PH, Bradfield Road, Leighton Crewe CW1 3RH
Call for price

Co-op Food, Loughborough

Co-Op KnightThorpe Road, Loughborough, Leicestershire, LE11 4JX
Current Opportunity
£ 1,000,000

Vacant Restaurant & 3 Flats with Development Potential, Newington

53-57 High Street, Newington, Kent, ME9 7JJ
£ 50,000

Vacant (To Let) Retail Unit, Doncaster

Formerly The Factory Shop, Scrooby Road, Harworth, Doncaster, Nottinghamshire, DN11 8JW

Vacant Former Post Office, Pinner, Greater London

Ground Floor Unit, 67 Bridge Street, Pinner, HA5 3JB
Call for price

Sainsbury’s, Pharmacy & Restaurant, Wootton

Berryfields Local Centre, Fields Road, Wootton, Bedfordshire, MK43 9FZ
Call for price

Mixed Parade (8 shops & 2 offices), Ashton-under-Lyne

37-49 Warrignton Street, Ashton-under-Lyne, OL6 7JG
Call for price

Iceland, Hucknall

Iceland, Ashgate Road, Nottingham, NG15 7AQ

The Home of the Blue-Chip Investor

Click the logos below to see relevant investment properties