You should have already read our article on 5 reasons to consider selling a property at auction and now we're going to look at how you do this. Contrary to the belief that property auctions are only ideal for old or derelict properties, there are many reasons selling a property at auction could work for you. In particular, if you’re looking for a speedy sale and certainty that a buyer won’t pull out of your purchase then selling at auction could be the best option for you. Once the auctioneer’s gavel falls, the buyer with the winning bid is legally bound to place a 10% deposit, exchange contracts and then finalise the legal and financial process as soon as possible – usually four to six weeks – so it’s a speedy process.
On the auction day, demand from multiple buyers helps to quickly drive up the price of your home, especially when they’re all in the room together and desperate not to miss out on the chance to purchase your property.
If your home is unique, tricky to value or in need of renovation, it can be hard to sell via private treaty (the traditional way of selling a property). However, one benefit of selling at auction is that the buyers who attend are often seasoned developers or looking for a project, and know enough about the market to understand the value of your property.
If you need to secure a quick sake – perhaps you are moving out of the area or need equity from the property urgently – then selling by auction could be the right option for you. As long as there’s enough interest and you’ve agreed a realistic price, there’s a good chance that your property will be sold by the end of the auction.
To help you decide whether selling at auction is right for your property and, if so, how to go about it, we have put together this step-by-step guide of things to consider.
Is my property suitable for sale by auction?
Most properties can be sold at auction, so long as a realistic reserve price has been agreed. That said, some types of property are naturally more suitable than others.
For example, builders and property developers often frequent auctions, looking for properties in need of modernisation or refurbishment. If the property you’re trying to sell falls within this category then you may well achieve a higher price at auction than you would on the open market.
Auctions are also an ideal environment in which to sell properties difficult to value. By agreeing a realistic reserve price, the auction process allows bidders to compete with one another until they meet the value they deem your property to be worth. This competitive bidding generally results in the property achieving its true market price.
Receive advice from an experienced auctioneer
We offer property advice in branch, at your home or over the telephone, so arranging a property valuation is simple. If you’re not sure whether to sell your home via private treaty or auction, our expert auctions team will visit your property alongside on of your local Leaders branch valuers. Together, they can offer you advice on what’s best for your property and personal circumstances.
Our expert team will confirm the expected value of your home, plus further details about how Leaders are able to market your property in the run-up to the auction.
Marketing is key
In order to achieve the highest possible price for your property, we know that the right buyer needs to be in the auction room when it’s sold! Therefore, we work hard on your behalf to ensure that the widest range of buyers are targeted in the run-up to your property’s auction date – regardless of whether you choose to sell at one of our room auctions or via our online auction.
We are able to compound interest prior to the auction by a comprehensive range of local and national advertising which includes: exposure on our website and property portals including Rightmove and Zoopla, exposure in our auctions catalogue and property newsletters - sent to buyers we think are a great match to your property, plus online exposure across our key social media channels.
Consider your reserve price carefully
A ‘reserve price’ is the lowest price you will be willing to agree a sale upon. This figure is kept private between you and our auctions team, so if all the offers on the auction day are lower than you wish to achieve, our auctioneer will withdraw the property from the sale and we can discuss alternative ways of achieving you the price you need.
However, once a buyer offers your reserve price or more, the auctioneer will drop the gavel and you will be committed to seeing the sale through, so make sure you are comfortable with your agreed reserve price.
Leaders will help you establish the right reserve price for your home – this can depend on the urgency of your sale, the condition of your property and whether there are any similar properties available on the same auction date.
On the fall of the auctioneer’s gavel, a binding contract is effected.
After this point, there can be no change or negotiation. The purchaser will be asked to produce identification and a deposit for 10% of the purchase price. Completion will usually take place between four and six weeks after the auction, at which time the remaining balance must be paid.
View Leaders’ upcoming auction dates.
Contact the Leaders auctions team for more information and guidance, or visit the Leaders auctions website – www.leaders.co.uk/auctions.
Find out more about Leaders auctions