We all know that the UK needs more homes, and land, as the only finite commodity necessary to build them, is, of prime importance to enabling that. When you have an asset that is so important, you need to handle it the right way, and selling through auction, both Modern and Traditional Methods, is a great way to do so. With the Traditional Method of Auction, contracts are exchanged immediately, with completion taking place within 28 days, whilst the Modern Method of Auction, the successful buyers either pays a reservation fee deposit, with 56 days to exchange contracts and complete.
On average, Private Treaty can take over 100 days to complete, whereas, auction provides fixed exchange and completion dates of between 28 and 56 days. This means you can plan your move more easily.
An attractive starting bid increases interest and encourages competitive bidding between prospective buyers, which can help to drive up the final selling price of your land.
NO SALE, NO FEE
Nothing to pay if your land doesn’t sell. You only pay an Auction Pack fee of between £395 and £445 inc. VAT depending on your circumstances, but only when your land sells. See our page on selling at auction for more information.
With auction, buyers pay a non-refundable Reservation Fee or deposit to secure the lot so, all parties can move forward with confidence.
A Reservation Agreement is also signed by the buyer, committing them to complete the purchase. This means the risk of fall-through with auction is less than 5%, unlike Private Treaty which has an average fall-through rate of 30%.
LSL Land & New Homes was recently involved in the sale of a plot at auction, in Yorkshire, the result was a sale being agreed in just 15 days for over £72,000 over the guide price. In a high demand market, and with plenty of exposure, the auction method attracted 106 bids and saw a great price achieved, and the best part, the vendor paid 0% commission!
LSL Land and New Homes have regional experts across the UK to assist with Land Acquisitions and Disposal. Get in touch to find out how we can help your future plans.