Guide to selling property at auction

To receive your no obligation property valuation, or enquire about entering your property into auction click here

Benefits of selling at auction

• Exchange of contracts on the day of the auction sale
• 10% deposit paid immediately
• Sale guaranteed upon fall of the hammer
• Completion within 20 working days
• Maximise sales value 

Property appraisal

If you have decided that the auction route might be right for you, simply request a no obligation, free property valuation (free real estate appraisal) or call us on 0845 053 6906 today. Our auction partner will perform your property appraisal and advise you whether they think your property is suitable for sale by auction.

Guide price

After your free property valuation a guide price will be recommended, which will help you to decide whether to progress with selling at auction . Remember that the guide price will always be lower than the current market value, so that the property receives as much interest as possible, resulting in more people bidding, and driving up the price. (Auction may not be the right method of sale if you are not comfortable with dropping your price). 

The right move

After agreeing on both a suitable guide price for your property and property sale commission fee, you will receive an auction agreement which you will sign and return before marketing begins. Congratulations! This constitutes formally instructing the auction house to sell your property, which is the first official step to selling your property in a secure, stress-free and competitive way.

Marketing your property

There is a fee to cover the inspection of the property, marketing and property catalogue production costs. Entry fees normally range from £250—£400 + VAT, depending on the auction house that will be managing your property.

Property catalogue

The auction property catalogue details all the lots that will be offered in the next sale and includes colour photographs of each property. The catalogue is distributed to those who request a hard copy as well as being available in an email version online, both with our auction partners and on the UK Auction List website.

In addition to featuring your property online, the printed property catalogue will be mailed to several thousand people, targeting individuals who have previously expressed an interest in similar properties for sale, as well as adjacent occupiers, local agents, local developers, builders, and property companies. On the advertising side, your property will be featured in the key property publications, as well as appearing in local and regional newspapers.

Commission for property selling

Draft sale particulars will be sent to you for approval and/or amendments. At the same time your solicitors will be instructed to prepare a legal pack containing special conditions of sale, title documents, leases (where applicable), searches, planning documentation and office copy entries so that they are ready for dispatch to interested parties.

Property agreement contract - draft

Draft property agreement contract containing sale particulars will be sent to you for approval and/or amendments. At the same time your solicitors will be instructed to prepare a legal pack with special conditions of sale, title documents, leases (where applicable), searches, planning documentation and office copy entries so that they are ready for dispatch to interested parties.

Viewings

Where applicable, regular viewings of your property will be carried out at pre-arranged times. These viewing times will be published in the property catalogue and online.

Legal pack for a property sell

The legal pack for selling your property will need to be made available through your solicitor. Buyers can receive documents by post if they so request. Some auction houses allow for the legal packs to be downloaded online.

Property offer management

During the marketing period, all interest and enquiries are logged. Our auction experts will maintain close contact with potential buyers and liaise with you throughout as well as reporting any offers made prior to the property auction sale.

Reserve price

Prior to selling your property at auction, a reserve price will be agreed with you. This is the level below which the auctioneer will not be authorised to sell – basically a reserve price is the lowest price you are prepared to accept for your property. It is important that the reserve price is set at a realistically achievable level.

Sell property fast and safe - The Auction Day!

For vendors it is important to note that the fall of the hammer represents an exchange of contracts and the successful bidder is legally obliged to pay a deposit, usually 10% of the purchase price, and sign a memorandum of sale before leaving the room. The buyer has purchased your property at the final bid price. They cannot renegotiate and cannot change any of the terms stipulated. Completion usually occurs 20 working days after the auction when the balance of the price is payable. The deposit funds are then paid to you less our auction house fees. The atmosphere of the room can be extremely exciting and competitive. The prices achieved at auction can often be higher than those achieved by private treaty, i.e. through an estate agent.

Property at auction, but reserve price not reached?

If your property fails to meet its reserve price at the property auction, someone may still wish to buy it. You will need to decide whether to accept any subsequent offer and advise the auctioneer accordingly. The property may even be sold in the days or weeks after the sale as the auction house continues to market the property. It is quite common for an unsold property to sell within 24 hours of the auction ending as potential buyers may have simply been delayed etc. You are of course more than welcome to attend the actual live auction, if your property does not sell prior to the auction date. It is important to remember that the auction house will not submit a guide price that is unrealistically high, basically because they aim to sell the property fast, usually within four weeks.

Future Property Auctions

If you want to sell property fast and receive a realistic price for your property, then selling your property at auction is definitely right for you.

If you decide that you want to proceed with the auction process you will need to register your property with us in good time – at least 4-6 weeks ahead of the scheduled auction date to ensure your property receives the maximum exposure. To get started simply request our no obligation, free property valuation or call 0845 053 6906 today!