Guide to Selling Your Property at Auction
Thinking about selling your property at auction but not sure where to begin? This comprehensive guide covers everything you need to know to confidently start the process and achieve the best price for your property. Drawing on decades of experience as leading property auctioneers, we break down the process and answer the most frequently asked questions.
Is It Worth Selling a Property at Auction?
One of the most common questions about auctions is, “Is it worth it?” Selling your property at auction can be an excellent option, especially if you are looking for a fast sale and want to benefit from competitive bidding.
Auctions often attract serious buyers who are prepared to make quick decisions, which can drive up the final sale price. The auction process is transparent, with a clear deadline for the sale, which helps streamline the transaction.
However, it is essential to consider auction fees and ensure your property is suited to this selling method. As expert auctioneers, we can help you determine if auction is the best route for your specific situation.
Is My Property Suitable for Auction?
The truth is, most properties are suitable for auction, including those that may need modernisation. Such properties often attract property developers who are looking for renovation projects, and auctions can yield a higher price compared to traditional private treaty sales.
At Auction House London, we also specialise in handling properties with unique challenges. Whether your property is undergoing probate, has suffered fire damage, or is affected by issues like Japanese knotweed, we have the expertise to manage these situations effectively. Our experience ensures that even properties with complex issues can be marketed to the right buyers, helping you achieve a successful sale despite the property’s condition.
How Much Does It Cost to Sell My Property at Auction?
Selling your property at auction involves several costs. If you choose to sell with us, we will first value your property and then agree on our terms and conditions, which include entry fees and commission. Our fees cover the inspection of the property and marketing expenses. The commission rate will depend on the property’s value.
While these fees are a factor, the competitive auction environment can drive up the sale price, potentially offsetting these costs and delivering greater overall value.
The Auction Process
Now that we have addressed some of the key questions about selling property at auction, let us explore the auction process in detail. By understanding each step, you will be well-prepared and able to make the most of your auction experience, ensuring a smooth and successful sale.
Preparing For Auction
You will need to start by obtaining a professional valuation of your property. At Auction House London, our property experts can offer an accurate market value – we will also offer guidance and explain the whole process in detail once you contact us for your valuation.
If you decide to go ahead with the auction, you will then need to sign our terms of business. This agreement will detail the auction terms, including fees, commission rates, and any reserve prices if applicable.
Marketing Your Property Ahead of the Auction
Just like private treaty, the property will be marketed using property details and professional photos on our website and through our digital auction catalogue. Your property will also be visible on a number of property portals including, Rightmove, Zoopla and On the Market, and promoted to our extensive contact database via email.
During the marketing period, we will keep in contact with you and inform you of serious buyers and enquiries. At the same time, your solicitor will be instructed to prepare a legal pack containing special conditions of sale, title documents, leases, searches and planning documentation.
We will also organise viewings for interested buyers, scheduled in advance to allow prospective bidders to inspect the property before the auction.
On the Day of the Auction
Bidders can register up until the auction day, and even during the auction itself. This flexibility helps us reach a wider audience by removing barriers like the need for advance registration. Buyers will need to provide identification and proof of funds or mortgage approval to ensure a smooth transaction.
During the auction, the auctioneer will invite bids from registered participants. Bidding will continue until no higher offers are made, at which point the highest bid wins, provided the reserve price has been met.
When you sell your property with us, it will be auctioned by one of our leading experts, including Andrew Binstock, widely regarded as one of the top auctioneers in the country. Known for his dynamic and captivating style, Andrew ensures your property secures the best possible price.
Our team of expert auctioneers also features Zac Morrow and Jamie Weir, both highly skilled in driving competitive bidding. No matter who leads the auction on the day, you can be confident they are committed to extracting every last bid before bringing the gavel down.
Post-Auction
If your property is sold, the winning bidder will sign a Memorandum of Sale and pay a deposit, usually 10% of the final bid price, and this is done immediately after the auction. In the unlikely event that the property does not sell, we will contact interested parties and under-bidders and invite the best bids.
Completion typically occurs within 28 days from the auction date. The buyer will pay the remaining balance, and the property legally changes hands. After the sale is complete, you will receive the sale proceeds, minus any auction fees and commission charges.
In Summary
Selling your property at auction offers several compelling advantages that can make it an excellent option for many sellers. Auctions create a competitive environment that can drive up the final sale price, often exceeding initial expectations. The process is transparent, with a clear timeline that allows for a swift sale, typically within a matter of weeks.
Additionally, auctions attract motivated buyers who are prepared to make quick decisions, reducing the uncertainty and prolonged negotiations associated with traditional sales. With expert auctioneers guiding the process and managing bids, you can be confident that you are achieving the best possible outcome for your property.
Sell Your Property With Auction House London
Getting started on the journey to selling your property or land with us could not be easier – we hold regular auctions meaning we can get your property into the online auction room in no time.
To help you get started and decide whether auction is right for you, we offer a free, no-obligation valuation of your property. And we are thrilled to collaborate with a trusted team of solicitors at Hutchins Law and Taylor Rose who specialise in assisting sellers looking to bring their properties to auction.
Our expert partners understand the unique and dynamic nature of the auction property market, offering a comprehensive range of services tailored to your needs. Whether you are a homeowner, an investor, or a developer, their dedicated team is committed to providing expert guidance throughout the auction process.
Find out more about selling your property with us by getting in touch to explore your options – we are here to help you get the best outcome for your sale, and ready to assist you every step of the way.
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