Thinking Of Selling at Auction
Selling a Property at Auction
Selling at an auction can be the ideal way to sell your property, especially if you’re looking for a quick sale. There are many benefits to selling a property at auction, and going down this route can be a lot quicker and simpler than selling a property in the traditional way, using an estate agent. However, when you are unfamiliar with the process of selling a property at auction, it can seem confusing and can feel like a big risk, especially if you feel you’re going in to the process blind. That’s why we have put together some useful information to give you a heads up on what to expect when you sell at auction.
As we said, there are many benefits to selling a property at auction, including:
Selling your home, commercial property, or land at an auction can be the fastest way to sell, so if you’re wanting a quick sale, this is the ideal option for you. If your property is bid on at auction, once the gavel falls, this forms a legally binding contract between yourself and the buyer. This means that the buyer is required to pay 10% of the amount as a deposit on the day of auction, and the remaining amount must be paid to the seller within the 28 days following.
From instructing the auction house, to completion of sale, this can be done in as quick as 8 weeks.
No Price Ceiling
When it comes to bidding for properties at auction, there is no price ceiling, so there is no limit on the amount you may sell your property for. And, due to the competitive nature of bidding during the short selling window, plus purchasers have less time to negotiate price, this can result in properties being sold for much more than expected. We have known properties to sell at auction in excess of £100,000 above the guide price.
There is also no risk of your property being sold for less than you would like, as you set the minimum value the auctioneers are able to sell the property for, so you’ll never get less than expected.
When you choose to sell your property at auction, you will benefit from receiving intense marketing for your property. Your property will be listed on our website as well as across third-party property sites, for any potential buyers to see, as well as being included in the latest copy of our catalogue, which is distributed to over 10,000 investors and potential buyers throughout the UK, and abroad. Auctions properties can also be listed throughout key media. At Countrywide Property Auctions we work to ensure your property gets the maximum exposure, giving you the best chance to sell your property on the day of auction.
Once the gavel falls, the buyers are legally obliged to pay the 10% deposit for the property, and the remaining amount within the 28 days following the auction. This means that there is a reduced risk of the sale falling through, due to the fast-paced transaction. Also, potential buyers at an auction are required to have arranged any necessary finances prior to the auction.
What Do I Do Next?
Aside from the benefits of selling at auction, the selling process is also quite straightforward and our teams of experienced auctioneers are here to help you throughout the whole process.
If you are thinking of selling your home, commercial property, industrial property, or land development at auction, the first thing you will need to do is contact us to arrange a market appraisal, where an expert valuer will visit your property and provide you with a valuation of your property, and discuss what your best options are. This is completely free, and you aren’t obliged to go any further after the appraisal.
Instruct the Auction House
If you decide to go ahead and sell your property at auction, following your free market appraisal, you will need to formally instruct us as your selling agent. At this point, we will ask you to confirm your reserve and guide price. These should be realistic, and ideally based on the valuation received at your appraisal. This will help to maximise your chance of selling your property at auction. Once we have confirmed everything, we will ask you to sign and a copy of our contract and terms & conditions, and pay your auction entry fee.
Instruct a Solicitor
You will be required to instruct a solicitor who can provide you with all the necessary legal documents needed to sell your property at auction. They should provide you with a legal pack containing all of the terms & conditions of sale. Your solicitor will manage the sale through to completion, should you receive and accept an offer.
Once all the necessary paperwork has been signed, and we have received your entry fee, we will then work on marketing your property, by first of all placing on our website as well as third-party property sites such as Rightmove, etc. Your property will then be listed in our latest catalogue, which will be circulated to thousands of property investors across the UK and overseas, as well being advertising throughout key media.
Once your property starts to be marketed and starts to gain interest, you may receive requests for potential bidders to view the property. At Countrywide, we employ viewing clerks who are able to accompany any potential buyers on property viewings. We will usually request that a set of keys to your property are left at our office, or that arrangements can be made so that we have ongoing access to the property throughout the auction period.
Bids can be made on properties before, during, and after the auction. Therefore, there may be potential buyers offering bids prior to the auction date, and if the property does not sell on the day of auction, it is still available to receive bids for up to 8 weeks after auction. If you do receive any bids for your property before or after the auction day, we will notify you and offer our professional advice, however it is completely down to your discretion whether or not you accept any of these offers.
On the day of auction, the catalogue of properties will be offered in lot order. If your property exceeds the reserve price, the auctioneer will sell to the highest bidder. The fall of the gavel signifies the agreement between buyer and seller. The buyer will be legally required to pay 10% of the amount on the day of auction, and the remaining amount up to 28 days after.
If your property does not sell on the auction day, it will still be available to receive offers for up to 8 weeks following the auction, and will still be marketed throughout this time.
Once a property has been sold, your solicitor and the buyers solicitor will progress the exchange of contracts. Completion usually takes between 3-4 weeks.
So, if you’re thinking of selling your property at auction, would like to book a free market appraisal, or have any questions regarding selling at auction please don’t hesitate to contact our team of experienced auctioneers at Countrywide Property Auctions today.