Selling a property at auction

Many people looking for a quick sale of a property consider the “sale by auction” route.
This can be an attractive option, but there are a number of things to consider.

Will you put your property in an auction near to you, or should you put it in an auction a long way away?

The decision of where exactly to put your property up for auction might be dependent on auction dates. A local auction in your area might not be happening for another 3 months or you may have missed the deadline for the catalogue, so you will have to research auctions further afield.

Auction fees and additional costs

Once you have decided on an auction, you will need to pay a fee to the auctioneer to get it listed into the catalogue and the auction itself. You will need to pay for an Energy Performance Certificate (EPC) too.

The auctioneer will then be able to provide a rough valuation to determine the guide price and prepare sales particulars including photographs.The fee for this can vary from auction to auction but is typically in the region of £300 to £500 plus VAT.

Other requirements before selling your house at auction

Once the property is listed, you may need to accommodate viewings by potential buyers. This can be in the form of individual viewings or holding an “open day” at the property to do a mass viewing.

Some sellers may refuse viewings for various reasons, including if the property is tenanted and the tenant has not given permission for viewings to take place. This has to be a condition of their tenancy agreement. If it is not in the tenancy agreement then the tenant has the right of what is known as “quiet enjoyment” of the rental property and can refuse to allow viewings.

Properties that cannot be viewed in advance typically attract less interest and bids than those that can.

What happens on auction day?

Come auction day, there is no guarantee that your property will be sold at this auction. It depends on who is in the room on the day and if the property meets the reserve price you may have agreed with the auctioneer.

Because of the quick completion dates required on auction properties, auction purchases are mainly cash buyers and they will not be looking to pay full market value for a property purchased through the auction sales channel.

This is very much like the difference between “retail” sales and “trade” sales. Those buying at auction are generally on the hunt for a bargain and looking to buy at a discount from market value, as they will likely be looking to add value to the property through refurbishment or trade on into the retail market place, thereby taking a degree of risk of making sufficient margin.

What happens if my property doesn’t sell at auction?

If your property is not sold on the day, you may find people make offers via the auctioneer after the event, but again, these will likely be a bit cheeky and not near your original asking price for the reasons given above.

If your property doesn’t sell at auction and you are disappointed then there are other ways you can sell your house fast.This is why our professional property buying solution is so popular.

Disadvantages of selling your house at auction

• Auctions can be hard find
• There are a range of auction fees you must pay
• You need to pay fees upfront

The alternative to selling your house at auction

As genuine cash buyers we can complete to a time frame that suits you and you can be guaranteed to sell your house fast. This can be in as little as 7 days and we can provide proof via our solicitor that we are genuine cash buyers with funds in place.

Additionally, using our service means a guaranteed sale which gives you complete peace of mind as to when funds will arrive in your bank account.

With an auction, if it does not sell on the day, you are back to square one and will have to start the sales process all over again. If you have a rented property, you might find that the tenants are disgruntled and end up leaving the property, which means you will lose your rental income.

We buy properties in any condition England and Wales, with vacant possession or any form of tenancy agreement, including sitting tenancies or life tenancies. With our service, there really is no hassle, no stress, and no uncertainty. Please read more about how Open Property Group can sell your house fast.

If your property is tenanted and the tenant is refusing viewings, we will undertake what is known as a “drive by” valuation, without having to view the interior of the property as we have a lot of experience with selling properties with sitting tenants.

Once you have made contact with us, we will make you a no-obligation offer within 48 hours of your enquiry.

To give you complete peace of mind, we are members of the Property Ombudsman Scheme and the Residential Landlords Association, which demonstrates our commitment to professional standards.

We endeavor to create a win/win situation that works for both parties which is not always the case when selling a property at auction.We offer a caring and empathetic service and pride ourselves on our fair and ethical approach. We have many happy customers and would be pleased to share testimonials with you, should you wish to see them.

You can contact us via phone or email and we look forward to speaking to you.