There are several good reasons for selling a property at auction. The most important is that you may achieve a better price, particularly if your property is in need of refurbishment. An auction could help you to sell a property that is difficult to value. It is also likely to result in a quicker sale.
To help you decide whether selling at auction is right for your property and, if so, how to go about it, Savills Auctions has come up with a step-by-step guide.
Is my property suitable for sale at auction?
Most types of property are suitable for auction, depending on a realistic reserve price being agreed. That said, some types of property are more suitable for auction than others.
A large number of builders and developers attend auctions looking for property that is in need of modernisation and refurbishment. If your property falls into this category, you might well achieve a higher price at auction than you would if you were to sell it via private treaty. Auctions are also useful for selling properties which are difficult to value. By starting at a realistic reserve price, the auction process allows bidders to compete with each other based on their own impressions of the property's value. This generally results in the property achieving its market price.
Advice on selling a property at auction is generally available from the auctioneers via telephone or email. You will need to supply the address and description of the property and any other details you feel to be important. The auctioneers will then put together a ‘no obligation’ appraisal of whether your property is suitable for sale at auction. If your property is suitable and a reserve price has been agreed, the auctioneers will then arrange an appointment to inspect the property.
Marketing is key
To achieve the highest possible price for your property you must target the widest range of professional and private buyers.
After inspecting your property, good auctioneers will prepare a set of details which they will publish in their auction catalogue and on their website, and distribute nationally via both email and post.
They will compound interest prior to the auction by a comprehensive range of local and national advertising. Ideally, you want auctioneers whose properties are regularly featured in both the Evening Standard and Estates Gazette along with a wide selection of local and specialist publications.
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 20 working days after the auction at which time the remaining balance must be paid.