We are often asked for information about selling a property at auction.
There are a number of real benefits to selling at auction but there are also a number of disadvantages. Below we cover a few of the more important issues.
Advantages of selling your home at auction?
You can usually sell your property more quickly at auction than through traditional methods. If the property sells at the auction you should receive payment within 28 days. If there is a lots of interest your property could reach a better price than on the open market.
The biggest disadvantage is that your property might not sell, but you will still have to pay the auctioneer costs and the solicitors.
Your property might not generate the interest you hope and may sell for less than on the open market. If you are still keen to sell your property at auction you can find details for local auctioneers through this website, simply look for Auctioneers selling properties in your area.
When you speak to them explain what and where your property is and find out:
- the next available sale date – don’t forget, you’ll need to be out within 28 days of the sale date!
- arrangements for viewing
- discuss your expected price and ask for their advice regarding the reserve
- their commission and any charges. (usually this is around 2.5% plus VAT)
- how much you’ll have to pay if the property doesn’t sell.
The auctioneer will normally:
- advertise your property in the catalogue
- prepare details for your property, with photographs
- arrange viewings
- prepare an information pack with conditions of the sale sell the property at auction
- sign the contracts with the buyer for the sale on your behalf
- transfer the money from the sale to your solicitor.
On the day of the auction, the property will be sold to the highest bidder. It becomes the buyers as soon as the hammer falls. The buyer will usually be asked to sign contracts on the day and pay a deposit and the full amount within 28 days. If the property doesn’t reach the reserve price, it may be possible to sell it after the sale to the under bidder. But remember if it does not sell you will still have to pay the auctioneer’s costs.