Selling at a Property Auction
Are you thinking about selling at a property auction? Our auctioneers will advise on the price you can expect to achieve, the likely timescales and the costs involved. They’ll agree a guide price and reserve price with you and discuss the entry fee and commission up front, so there are no hidden surprises or worries. Request a Free, No Obligation Property Appraisal.
If you are thinking about selling at a property auction this year, then you have come to the right place.
For over 20 years, we have partnered with some of the top performing property auctioneers across the UK, to ensure the auction process is as smooth and rewarding as possible for you, the seller.
There are a number of advantages to selling your property through a traditional auction (rather than modern method), including transparency, certainty and speed.
Selling by auction will also provide you with the security that once a buyer commits to bidding on a property, and the reserve price is met or exceeded, they are legally obligated to complete the purchase, normally within 28 days.
As the sale will happen on a set date, you can safely make plans, without the fear of your buyer pulling out somewhere along your chain, and you losing out on your dream home.
Selling property at auction is often the best route to sell quickly and to achieve the best possible price on the day. Having said that, if you’ve never bought or sold at auction, it may initially feel like a daunting prospect.
Our auctioneers will help to demystify the process of selling by auction, so that you can assess whether it is the right choice for you. They will chat through the process with you in more detail, answer all of your questions, and advise on the expected price that you could realistically achieve by choosing sale by auction.
If you decide to progress, then you will be guided through every step, to ensure that it remains as stress free as possible for you.
Our experienced auctioneers will also advise and agree a Reserve Price with you, which is basically the minimum price you are willing to accept when the property is under the hammer. This price is typically set before the auction begins and is kept confidential from the bidders.
If your property fails to sell at auction, don’t worry — all is not lost! Unsold lots are made available to buy after the auction, stating the minimum price for which you’ll be willing to sell. Offers will be submitted to you and, should you accept, auction contracts will be exchanged immediately.
Your property will also continue to be advertised as "Available To Buy" on the UK Auction List website for up to six weeks post auction, reaching thousands of new potential buyers, and reminding those who might have been previously interested, that your property is still open to offers.
So, if you have a property or some land that you're considering selling at auction and want to find out how much it might be worth, simply complete the short "Auction My Property" form on our website.
One of our experienced surveyors will be in touch shortly to provide you with a free, no obligation auction appraisal and answer all of your questions to help you decide whether sale by auction is right for you.
What are the advantages to the traditional method of auction?
A property auction can be a thrilling and efficient way to sell property fast, and secure a guaranteed sale.
- Exchange contracts on property auction day
- Sale guaranteed upon fall of the hammer
- 10% deposit paid immediately
- Completion within 20 working days
- Maximises sale value
Although property auctions have historically been used for sales of repossessed homes, they are growing in popularity amongst vendors of all kinds of properties looking for quick sales. The types of property that generally sell well at auction include:
- Properties that are hugely in demand or have a large number of interested parties
- Repossessed homes that need a quick sale in order to repay a debt
- Properties for which it is hard to find a buyer through a more traditional route
- Properties in poor condition that require renovation
- Unique or unusual properties which are hard to value
If you are happy with the Valuation and decide to progress, below is our step-by-step guide to selling your property at auction:
1. Instruction and Setting A Guide Price
It is important to note that an auction valuation of your property may differ from that of an estate agent. The price indicated in both types of sales serves as a starting point. In the open market, potential buyers typically attempt to negotiate the price downward. In an auction, the objective is to stimulate competitive bidding and drive the price upward.
We strongly advise against setting a guide price that is excessively high, as this can discourage potential buyers. Properties that yield the greatest success usually possess a guide price that generates interest and encourages competitive bidding. A compelling guide price has the potential to lead to a higher sale price.
Once a suitable guide price and sale commission fee have been decided, you will receive an auction agreement to sign and return before marketing begins. This acts as a formal instruction to the auction house, and is the first official step towards selling your property. Under Anti Money Laundering Regulations, proof of your identity and address is also required before we can market your property.
2. Market your property
A member of the auction team will usually inspect your property, take measurements where appropriate, and the property will be photographed. Draft sales particulars will then be sent to you and your solicitors for approval.
As well as appearing on all the major property portals, details of your property will be circulated to thousands of people, including adjacent occupiers, local agents, local developers, builders, and property companies, as well as individuals who have previously expressed an interest in similar properties for sale.
3. Get your paperwork in order
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. This is done in order to have everything ready for dispatch to interested parties, but before anything is sent out draft sale particulars will be sent to you for approval and/or amendments.
It is a legal requirement to undertake an AML (Anti-Money Laundering) check for each seller before the auctioneer can start marketing. A seller will usually be asked to provide 2 forms of identification (1 photo ID such as your passport or driving licence and 1 proof of address such as a bank statement or utility bill no more than 3 months old) at the time of instruction so this doesn’t cause a delay.
4. Organise viewings
Regular viewings of your property will be carried out at pre-arranged times. These viewing times will be published in the property catalogue and online.
5. Manage early offers
During the marketing period, our auction experts will log all interest and enquiries and maintain close contact with potential buyers and sellers, reporting on any offers made prior to auction day. You can accept offers made ahead of auction day. Offers will be sent in writing or by e-mail to the auctioneer. You are under no obligation to withdraw the property from the auction until contracts have been exchanged.
6. Set a reserve price
Prior to selling at a property auction, a reserve price will need to be agreed. This is the lowest price you are prepared to accept for your property, and the auctioneer will not be authorised to sell below this level. It is important the reserve price is set at a realistic and achievable level.
7. Auction day
Depending on demand for your property, the atmosphere of the auction room can be extremely exciting – and you may or may not choose to attend the live auction. The fall of the hammer represents an exchange of contracts and the successful bidder is legally obliged to pay a deposit upfront, usually 10% of the purchase price, which you will receive upon completion, minus the auction house’s fees.
Many auctions now take place online, allowing you to follow the bidding via the auctioneer's website.
Under Anti Money Laundering Regulations, our auctioneers carry out full checks on all buyers and bidders before the auction. Completion typically happens 20 working days after the auction when the full balance of the purchase price is payable. Prices achieved at auction can often be higher than those achieved by private treaty, i.e. through an estate agent.
8. If the reserve price is not reached
If your property fails to meet its reserve price at auction, someone may still wish to buy it. You will need to decide whether to accept any subsequent offer and advise our auctioneer accordingly. We will contact all previously interested parties and invite best bids. It is quite common for sales to be agreed immediately following the sale when post-auction interest is at its strongest.
To get started, simply request our no-obligation, free property valuation or call 0203 6039530 for a chat.