)
)
)
)
If you decide that you want to go ahead and sell a house at auction, there are some considerations you should make. Continue reading to find out more about the process of selling at auction o or read our article to understand the pros and cons of selling at auction.
Choosing the right auctioneer
The first thing you need to do when selling property at auction is find the right auctioneer. Compare different auction houses to see how they’re likely to market your property, and check how much experience they have with selling property in your area.
You might pay more to go with an established auction house, however, they should offer plenty of experience when it comes to getting you the best price. On the other hand, you may prefer the service you get with a less well-known house, which could offer you their services for less.
How much does it cost to sell a house at auction?
Typically, auction houses charge a commission of around 2% of the selling price of your property. This is potentially more than many high street estate agents, but it’s worth working out what you’ll pay if you’re looking at alternative ways of selling your house. In addition to the commission, you may also have to pay an administration fee, advertising costs or entry fee, which could be in the region of £300 – £400.
Most auction houses provide buyers with an information pack that includes legal documents and title deeds, so it’s best to find out how much you have to pay for these on top of the other costs. It’s also worth remembering that you’ll still have to pay the auction fees even if your sale doesn’t go through.
Aside from the auction house, you’ll also need the services of a conveyancer or solicitor, just like with a private sale. You should include the cost of this in your budget, as your conveyancer will help you with the legal side of things before your sale, on the auction day, and afterwards too.
Should I accept an offer before the auction?
As your property’s advertised through the auction house, and there’s the chance that lots of people will go to view it, it’s very common to receive offers prior to auction. A potential buyer might be keen to secure a deal before it goes under the hammer, leaving you with a decision to make.
You'll need to weigh up how good the offer is, and whether it meets your expectations. It’s also worth considering that you’ve already paid the fees and costs involved, and the reason why the buyer wants to snap it up. This is probably because they think it’s going to go for much more at auction, so they want to wrap up a good deal. If you decide to proceed with the auction anyway, the offer you received could help you to set your reserve.
)
)
Get a conveyancing quote
Get a quote for your auction sale today, or reach out to our Move Specialists with any conveyancing questions related to selling at auction.
Understanding the auction process when selling
Selling your house at auction involves several steps, and understanding what happens before, during, and after the auction can make the whole experience smoother and less stressful.
Before the auction
Set the guide price
First, the auctioneer will help you with the guide price, which gives potential buyers a rough idea of what the auction house thinks the property will sell for. You don’t need to worry too much about this, but you do need to think carefully about the reserve you set.
Decide on the reserve price
This is the minimum price you’re prepared to sell your home for, and it's kept private between you and the auctioneer. If the bidding reaches your reserve, your property is sold – there’s no backing out. That's why it's crucial to choose your reserve wisely. Don't worry if you think you've set it a bit high; there's always a chance to negotiate with a bidder after the auction if it doesn't sell.
Prepare your property
Once you've set the prices, your property will be marketed by the auction house to attract potential buyers. During this marketing period, interested buyers might want to view your home, so it's a good idea to have everything in top shape. This means fixing any repairs, giving it a good clean, and making sure all your paperwork is in order.
Find more tips on getting your house market-ready
Prepare the legal pack
Your conveyancer will help prepare a legal pack, which includes all the necessary documents like title deeds and property information forms. This pack is made available to buyers before the auction so they can review the details.
During the auction
On the day of the auction, things can move quickly. The auctioneer will start the bidding at a certain price, and potential buyers will place their bids. It's often an exciting atmosphere as buyers compete to win your property.
As bids are made, they'll hopefully approach or exceed your reserve price. Once the bidding reaches your reserve, the highest bidder at that point becomes the buyer, and the sale is legally binding. This means both you and the buyer are committed to completing the sale – a key advantage of auction sales.
You don't necessarily need to attend the auction unless you want to. The auctioneer manages the entire process, ensuring everything runs smoothly and professionally.
After the auction
Once your property has sold at auction, the next steps happen swiftly. Immediately after the auction, you and the buyer will exchange contracts. This formalises the sale and legally commits both parties.
To secure their purchase, the buyer is required to pay a deposit, usually around 10% of the purchase price, on the day of the auction. The remaining balance is typically due within 28 days. During this time, your conveyancer and the buyer's solicitor will handle the legal details to transfer ownership.
)
)
)
)
)
)
