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A Guide to Selling Property at Auction

Many properties sell very well through auction, often achieving a fantastic sale price. If you have a property that falls into any of the following criteria, auction may be the best route to a successful sale.

  • Properties with vacant possession and in poor condition are always in demand at auction and usually sell at high prices. These properties are often houses where the owner has gone into a home and is in need of modernisation.
  • Properties with structural defects can be sold best through auction. These properties are usually difficult to obtain mortgages and are in need of a cash buyer.

  • Family properties with vacant possession where the client is long distance. The vendors of these properties often look for a quick and hassle free sale.

  • Building plots and land will attract developers and investors.

  • Commercial property such as retail units, hotels etc usually find the best price in the auction room.

  • Any property that has been on the open market for a long time can achieve its true value at auction.

 

The process for placing a property into auction is summarised below:

  • Make an appointment for a free auction valuation. The valuer will provide you with a current market valuation with advice on the property's suitability for auction.
  • If you are happy to proceed, you agree commission rates and pay the entry fee of £500 + vat.
  • Property particulars are agreed with you for marketing purposes. All auction properties are launched online around 4-5 weeks prior to the auction date.
  • Viewings are accompanied and will be arranged as per your instructions.
  • You will need to instruct a solicitor to prepare a legal pack to ensure legal exchange of contracts on the night. This should be available at least 2 weeks prior to the auction. Payment for searches is normally required up-front, however this can be redeemed from the buyer.
  • Feedback is provided regularly so that you are aware of the interest your property is receiving. We normally know within the first two weeks of marketing how successful your property will be in achieving a sale.
  • A reserve price is agreed with the auctioneer prior to the auction. This can be done at any time during the marketing period, however we advise for this to be confirmed the week prior to the auction. By then we will have monitored enough interest to advise you correctly.
  • You can attend the auction if you wish, however if you cannot make it we will call you afterwards to inform you of the result.
  • The successful bidder will pay a 10% deposit (based on the guide price) and exchange contracts on the night of the auction with legal completion to follow within 28 days (or later by prior agreement).

To arrange a free auction valuation or make further enquiries contact Gemma on 01904 756116 or email [email protected]