whether it's a house flat
or any other type of property an auction
sale provides a quick
reliable and hassle-free way to sell
this useful guide to selling at auction
explains what's involved with an auction
sale to help you decide if it's the
right routes for you
the sale price is of course the most
important consideration
when selling your home the pricing at
auction works differently from an estate
agency sale
generally speaking with an estate agency
sale the initial asking price is set on
the high side to start with
and is usually negotiated downwards and
it's also worth bearing in mind that
sometimes estate agents set a very
optimistic initial asking price
just to win a seller's instruction
with an auction sale the direction of
negotiation is different
the price only goes upwards it's the
opposite direction to an estate agency
sale
when selling your house by auction you
will need to agree to an auction reserve
price
the reserve price is the minimum amount
your property will be allowed to sell
for
on auction day there's more information
about reserve prices on our website
but for now just think of the reserve as
the starting price it's like a guarantee
for you
your property will not be allowed to
sell for any less than the agreed
reserve price
and the sale price can only go upwards
from there
if you're happy with the auctioneer's
suggested pricing
then you can make a decision to get your
property booked into an auction sale
booking into auction is very simple
you'll just need to sign and return the
auctioneer's terms of business
this is an agreement between you and the
auction company
it's very similar to an estate agents
agreement but before booking into
auction
think about the time frame you want to
work to you'll need to book into auction
no later than about
four weeks before auction day that gives
the auctioneer enough time to carry out
their advertising
to ensure there's a good level of
interest in your property and plenty of
bidders on auction day
at the same time as booking your
property into auction
you should be ready to appoint a
solicitor
just like selling with an estate agent
you will need a solicitor to help with
all the legal aspects of the sale
if you don't have a solicitor already
that's not a problem
the auction company will be able to
recommend a suitable solicitor for you
now then once you've booked into auction
the auctioneer will begin marketing your
property for sale
the advertising usually includes a
listing on the big property portals
like zoopla and right move an entry in a
printed brochure
and an email campaign sent to their list
of registered buyers
the auctioneer will also shadow four or
five open house dates
for viewings so any prospective buyers
can take a look around your property
before
auction day each viewing will last for
about half an hour
and there will be a representative from
the auction company to open up and show
people around
if you have tenants or want to make
special arrangements
then these can be agreed with the
auctioneer
the auctioneer will let you know in
advance when the viewings are scheduled
to take place
and there's no need for you to be
present at the viewings unless of course
you want to be there
apart from the marketing there's one
other thing that's very important
and that's the auction legal pack the
auction legal pack contains all the
documents about your property
for example the title document the deeds
a property information form and searches
your solicitor will prepare the pack but
you have to be ready to respond to any
questions they have
and fill in the odd form or two
prospective buyers will want to view the
legal pack before the day of the auction
so it's important for it to be ready
fairly swiftly
in the weeks before the auction the
auctioneer will check on your
solicitor's progress
to make sure the legal pack is taking
shape
they'll also let you know about the
level of interest from prospective
buyers
and notify you of any offers put forward
before auction day
if you receive any offers yourself
directly it's best to forward them to
the auctioneer
so they can negotiate on your behalf
whilst it might suit some sellers to
accept an offer before auction
in most cases it's best to let a
property run to auction
and let buyers compete against each
other that's a sure way of knowing
you've achieved the very best price for
your
property
when auction day arrives you can attend
the auction yourself
if you want to but there's no
requirement and contrary to some online
articles
your solicitor does not need to be at
the auction either
most good auctioneers will broadcast the
live auction online
so if you want to watch the auction from
home or even on your phone
you can tune in to watch the event when
your property comes up
the auctioneer will announce the lot
number and the address
they'll give a brief description of the
property and if there are any buyers who
have registered to bid by internet or by
telephone
they'll make sure their colleagues have
them on the line ready to bid
watching your property sell at auction
can be very exciting
the auctioneer will do everything they
can to make sure you get the best price
for your property
as buyers compete against each other the
sale price
increases usually bidding will last for
just a few
minutes but the auctioneer will allow
enough time to make sure the highest
possible price is achieved
when bidding ends the auctioneer will
give a final warning
asking for any other bids if it's clear
there are no other bids
the auctioneer will count down from
three to give any other buyers the
chance to bid
as long as bidding has reached or
exceeded the reserve price
the auction sale ends when the
auctioneer hits their gavel
and announces the final sale price
achieved
auction sales are legally binding
the winning bidder has legally purchased
your property
they will immediately pay a 10 deposit
and contracts are formally exchanged
the buyer cannot back out of the sale
and neither can the seller
you won't need to move out of your
property just yet
the standard time for completion of sale
is 28 days
or it can be later than that depending
on what you've asked your solicitor to
put in the contract
if you need a longer completion date six
weeks or eight weeks is perfectly
possible
now you can see why auction is said to
be the most reliable
and hassle free methods of sale
available
auction overcomes all the inefficiencies
of an estate agency sale
there are no price drops and no sales
falling through
with an auction sale sold really does
mean sold
if you're ready to sell your property or
just want to find out more about selling
at auction
please contact the team at auction link
we're here to help and happy to answer
any of your questions about selling at
auction