Selling A Property At Auction
There are many benefits to selling at auction. The property buyers are serious and rarely change their minds once committed - something that cannot always be said of the usual route of selling property! It is quick and is often an ideal way to sell a property fast that is unusual or has been on the market with an Estate Agents without success.
Considering selling at auction? For a free consultation with one of our advisors call 01903 868 597.
Guide To Selling At Auction
When Do You Want To Sell?
Decide when you want to sell your property and which auction you would like to put it in.
The auctioneer can provide you with a free, no obligation auction appraisal of your property. They will advise you whether we think your property is suitable for sale by auction or not.
Reserve Price & Guide Price
The auction team will recommend a guide price which you will need to approve before marketing begins. It is important to set the guide at a realistic price which is attractive to buyers. This will generate competitive bidding in the auction room, and ensure that the best price is achieved.
After agreeing on a suitable guide price for your property and a commission fee you will need to sign an auction agreement.
Catalogue Entry Fee
Auctioneers usually charge a fee to cover the inspection of the property, marketing and printing of the catalogues.
If successful auction your property, a charge commission is due which is generally in the region of 2% + VAT depending on the value of the property.
Sale Particulars & Legal Packs
Draft sale particulars will be sent to you for approval and/or amendments. At the same time your solicitors will be instructed to prepare a legal pack containing special conditions of sale, title documents, leases (where applicable), searches, planning documentation and office copy entries so that they are ready for dispatch to interested parties.
The catalogue details all the lots that will be offered in the next sale and includes colour photographs of each property.
The legal pack will need to be made available through your solicitor. You should also arrange for buyers to receive documents by post if they so request.
A reserve price will be agreed. This is the level below which the auctioneer will not be authorised to sell. It is important that the reserve price is set at a realistically achievable level.
The Auction Day Itself
For sellers and buyers it is important to note that the fall of the hammer represents an exchange of contracts and the successful bidder is legally obliged to pay a deposit, usually 10% of the purchase price, and sign a contract of sale before leaving the room. The buyer has purchased the property at the final bid price. They cannot renegotiate and cannot change any of the terms stipulated. Completion usually occurs 20 working days after the auction when the balance of the price is payable. The atmosphere of the room can be extremely exciting and competitive and we thoroughly recommend going to an auction just to experience the drama!
What happens if the property does not sell on the day?
If a property fails to reach its reserve price at the auction, someone may still wish to buy it. The owner will need to decide whether to accept any subsequent offer and advise the auctioneer accordingly. It is quite common for an unsold property to sell within an hour of the auction ending as potential buyers may have simply been delayed etc. There are also alternative routes to sell quickly and easily, click here for more information.