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!

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