Auction is a proven way of selling residential and commercial properties, and even development plots quickly and efficiently.
It is an increasingly popular option for landlords with tenanted properties, because of the hassle-free nature of the process. This is also a significant advantage for existing tenants, who should experience minimal disruption during the sale.
However, despite the swiftness of the auction process, buyers and sellers will need to consider several factors when dealing with a tenanted property at auction. In this article, we’ll cover these points for buyers and sellers at every stage of the auction journey.
If you are looking to sell a tenanted property, don’t hesitate to contact our friendly and professional team for a free property appraisal today.
Yes! It’s not uncommon for landlords to sell a property with tenants in situ. This can be by auction or on the open market, although many vendors prefer auction for its speed and transactional transparency.
Landlords can sell tenanted homes and even portfolios of properties at auction. These can be sold as either single or combined lots within the same auction, which gives the seller a fantastic opportunity to manage their portfolios quickly while saving time and money.
The Edward Mellor auction team often helps vendors with tenanted properties to sell two or more homes in a single auction. For example, we recently had a client who was concerned about how to sell a sizable portfolio of properties.
We worked with them to devise a strategy to sell portions of his portfolio, by entering around 20 of his properties into auction at a time.
We were able to coordinate access with the tenants and successfully sell the majority of his properties without hassle. The client was very satisfied with the process and is now considering selling more properties through the same method.
You can check out the results at our May 2024 and June 2024 property auctions and even bid on some lots from the same vendor in our next online property auction in July.
Selling property at auction offers several benefits, some of which are ubiquitous with auction sales while others are unique to selling tenanted homes.
It should be noted that while selling a tenanted property at auction is generally much smoother and faster than selling on the open market, some buyers may find that their financing options are limited for lots such as HMOs, rent protected properties and flats in high-rise towers.
This is why Edward Mellor has partnered with Together. Their specialist short-term finance options can help buyers secure a short-term deal within the 28-day window required when buying at auction.
The auction route can be the most efficient way to sell a tenanted property and best of all, the overall process is significantly different to selling a vacant home.
Like any property sale, the size, location and condition of the lot will have an impact on the value of the home. It’s also important for vendors to remember that the type of tenancy arrangement in place can impact the sale value of a property. Regulated, Statutory and Protected Tenancies, for example, may mean that rents will remain the same for several years, which can impact the overall rental yield of the property and potentially influence its market value.
However, once a vendor has committed to selling a tenanted property, the Edward Mellor auction team can act quickly to ensure sellers achieve the best possible price.
The seller should ensure that properties are fully compliant and provide a copy of the AST (tenancy agreement) to allow us to progress the sale. The vendor will also need to provide tenants’ names and contact details so they can be contacted if needed, but otherwise, nothing is different to our typical auction sale process. We’ll cover the marketing and sales process from start to finish.
In the run-up to the auction, we can liaise with the tenants on the vendor’s behalf to facilitate a smoother process.
If you are thinking of selling your property at auction, speak to our auction experts today by booking a property appraisal. Edward Mellor is a leading national property auction house and the only organisation locally that combines auction, estate agency and financial services all under one roof.
To find out more about selling at auction or to register to bid, please do not hesitate to contact the auction team on 0161 464 7903 or email [email protected].
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