Selling by auction
WHY SELL BY AUCTION?
Selling at auction can be a useful way of selling for vendors of certain types of property.
First, because the successful bidder is bound by law to complete the sale, putting your property in for auction is a way of gaining certainty over a sale that is all too lacking in the ‘normal’ sales market. The bidder is required to pay 10% there and then, with the balance due 28 days later.
Second, because of our extensive marketing [link] we’re usually able to ensure a good supply of bidders at any auction – and of course the more people at an auction, the more likely there is to be a bit of a bidding battle – what every seller dreams of!
THE CONDITIONAL AUCTION
There is one alternative called a ‘conditional auction’ in which the successful bidder pays a non-refundable deposit of £3,500 on the fall of the gavel, and also agrees to complete within a maximum 42 days – although under this scheme, they do retain the option to withdraw within 28 days.
If you are looking to buy and your own home is imminently about to exchange contracts, this type of auction is ideal for you as it enables you to bid against cash buyers, yet still offers the option to withdraw if your own sale falls through, for example.
For sellers, the conditional auction widens the potential audience and creates a livelier bidding environment – shorthand for more hands going up!
WHICH PROPERTIES ARE MOST SUITABLE FOR AUCTION?
Selling at auction can be particularly good if the property is in need of renovation, as auctions often attract investors looking for properties like this.
Auctions can also be useful if your property is unique and hard to value (although thanks to our experience we’re particularly adept [link] at valuing property which doesn’t have comparables against which to arrive at a valuation).
Nevertheless, an auction can be useful for unusual property because by definition, if it sells, the market has decided its value.
ARRIVING AT A GUIDE PRICE
As with all property, we’re skilled at helping our clients arrive at the right valuation – one that will attract enough interest but simultaneously maximise the amount you realise from your sale.
We can also advise you on setting a reserve price – your ‘floor’ price below which you are not obliged to sell.
GETTING OFFERS BEFORE THE AUCTION
Occasionally, you might receive an offer before the auction starts, and it is up to you whether to take the offer or whether to go ahead with the auction, and we can help you reach the right decision should this arise.
If you would like any more advice on selling your property at auction, please contact your local office.