Selling your property at auction
Auctions are becoming an increasingly popular way to buy and sell property because they offer a simple and quick process that's more open and transparent than selling with an agent. As soon as the hammer falls, your property goes to the highest bidder and the sale is complete within 28 days.
Potential purchasers may want to view your property during the marketing period and have a survey carried out. They will also want to see any Special Conditions of Sale, title documents, lease details (where applicable), searches, planning documentation and office copy entries. A legal pack containing these items will have to be made available through your solicitor.
The key benefits are:
- A quick way to sell without compromising on the sale price
- Contracts are exchanged immediately and a completion date is fixed
- Funding is already arranged and buyers pay cash. A minimum of 10% deposit is paid at auction and the balance paid within 28 days
- The sale is not subject to contract
- Competitive bidding achieves the best price for your property
- Auctioneers invest a lot in advertising and have a comprehensive database of potential buyers so your property will get good exposure. Houses may be advertised in online as well as printed catalogues.
Property auctions aren't suitable for selling every type of property, but are an ideal marketplace for:
- Residential or commercial investments
- Vacant shops or houses in need of renovation
- Commercial or residential property, either in high demand areas or, conversely, in poor demand locations where private treaty sales could be difficult.
However, bear in mind that there are no guarantees that your property will sell, and you will still have to pay the auctioneer and solicitor's costs regardless. Your property might also not generate the interest you hope so you could end up selling it for less than on the open market. You'll also have to move out of your property within 28 days of the auction, so wait to list it on the most appropriate date.