A Comprehensive Guide to Selling Your Property at an Auction
Whether you’re downsizing, relocating, or burdened with unwanted inheritance, selling your property at an auction is a fast and effective way to get a fast sale. Many people find that selling their property at an auction is a quick and easy alternative to working with a real estate agent. In 2022, nearly 40% more property by value was sold at auctions; this increase from 2019’s figures can be attributed to the COVID-19 pandemic and its impact on property auctions in the UK.
Sounds promising? Before you decide to take this route, it’s crucial to understand how the process works to prepare yourself for this seemingly daunting venture. The Property Auctioneers has created a comprehensive guide to help potential clients navigate property auctions armed with knowledge.
Why Sell Your House at an Auction?
As mentioned previously, selling your property at an auction is a reliable way to close a deal. Auctions are high-pressure environments where buyers come together to compete against each other. This competitive spirit and the urgency of the auctioneer’s gavel can drive up a sale price. Buyers come to an auction with the complete determination to make a purchase, so the chances of your property not getting sold are very slim.
To Which Auctioneer Should I Go?
Your house is a valuable investment, so you need to make sure you’re working with an auctioneer you can trust. Research the auction company’s credentials, track record, and local reputation. How do they market properties, and what properties have they successfully sold in the past?
What Is Reserve Price vs Guide Price?
A reserve price is the minimum price that you are willing to agree to sell the property for. You will discuss this with your auctioneer, and the figure will remain confidential.
On the other hand, the guide price is the price advertised to the public. It is wise to get an auction appraisal to know the actual value of your property so you can make realistic and reasonable estimates on pricing.
Once you agree and sign all the paperwork, your auctioneer will market the property for you. The auctioneer must contact you and give you updates about serious buyers and other enquiries.
What Happens on the Day of the Auction?
Once the hammer falls, the buyer is legally bound to pay a 10% deposit on the same day and give the remaining 90% within a month or so. If they are unable to do so, they risk losing their deposit and are required to pay fees and penalties.
In the unlikely event that the buyer cannot hold their end of the bargain, The Property Auctioneers will reach out to interested parties and under-bidders.
Unsold Auction Lots
It’s not common for some properties to go unsold, considering the nature of our auctions and our persistent approach. However, if you missed out on a lot that you had your eye on and the original buyer withdraws from the deal, you can still purchase it. Check our listings for unsold auction properties, or contact us directly to propose an offer.
Connect With a Trusted Auctioneer
The Property Auctioneers offers the best buying and selling rates. Our service coverage is the entire UK, and we have satellite offices nationwide. Our coverage allows us to have a full view of the property auction industry and access local information relevant to your sale. You can count on us to be with you every step of the way—from appraisal and price setting to marketing and actual bidding.