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How to sell your property at auction
There are many advantages to selling your property at auction; it is a quick way to sell, having a number of potential buyers could drive up the price and there is little chance of the buyer pulling out as they need to pay a deposit on the day of the auction. Selling at auction can also be particularly useful if you have an unusual property or extensive renovations are needed, as they tend to attract developers and landlords who are looking for opportunities.
Whilst it is faster than selling a property the conventional way, there is still a process you need to follow when selling at auction; here, we explain some of the top factors you will need to consider.
1. Costs – as with selling any property either through an estate agent or an auction, there will be costs you will be expected to pay.
- You will need to pay us to prepare the auction pack and complete the sale.
- There will also be costs for the auction house, which they will detail for you. Even if your property doesn’t sell, you may still be liable for these fees.
- Depending on the auction house, you may also be required to pay advertising costs, but this will be detailed in the terms and conditions of the auction house, so ensure you read those carefully before proceeding.
2. Viewings – potential buyers may request to view the property before the auction so ensure that it is looking at its best and is available.
3. Offers before the auction – it is not uncommon for you to receive offers on the property before the auction date. If this happens it can be tempting to refuse them as there is a chance you could get more at an auction, but depending on what the offer is, always take some time to consider and discuss the offer with your auctioneers.
4. Setting the guide price – as well as judging this from any offers you get before the auction, it is important to also take the advice from the auction house you are using.
5. Setting the reserve price – the reserve price is the minimum price you are willing to accept for the property. This is not released to the public and interested buyers. If this price is not reached during the auction then the property will not be sold, however you can negotiate with a buyer after the auction if you both wish.
6. Timescales – as already mentioned, once the bid is accepted, the buyer is committed to paying 10% of the price on the day. They then usually have approximately 20 working days to pay the remaining 90%, although you can stipulate the date in the auction pack. This is a very swift timescale and so before you commit to selling at auction you need to ensure that you are ready to move as and when required.
After the auction, we will:
- Finalise completion of the sale
- Send the final documentation including the transfer deed to sign
- Manage post completion formalities
- Repay any secured loans.
Deciding whether to sell your property at auction will depend on the property itself and your own personal situation. You can discuss your questions with our specialist and experienced Auctions team today on 023 9277 6569 or email firstname.lastname@example.org.