The Need to Sell Your Property at Auction

So you’ve decided to sell your house at auction. What for? Who knows? But what you can know and rely on when selling at auction is a quick and guaranteed sale. Before you choose to go ahead and sell you need to know what you’re doing. Here’s a short guide on how to sell your property at auction and what to look out for.


Firstly, Why sell your house at auction?

Personal and financial circumstances can change suddenly. Misfortune may lay before you   and it may be time to sell some of your assets. Perhaps you’re going through a divorce or having to settle up some debts? Then auctions are the way to go.

At the fall of the hammer, the sale is completed within 28 days. It’s a quick and easy way to access your liquidity. Compare that to private treaty sales, that can take months and leave the entire process vulnerable to fall throughs and issues - CHAINS.

Again, at the fall of the hammer, the seller and the bidder are intertwined within a binding contract that requires a 10% deposit from the buyer. Sellers can benefit greatly from knowing there’s security backing the process. No cold feet.

Along with the speed and security, the very nature of auctions, with transparency of price and demand from multiple buyers can quickly drive up the price of your property – hitting and exceeding those reserves and giving you more money.

If you have an unusual or run down property that might struggle to be sold through an estate agent then again, selling with an auction house is the best way to go. Auctions are often attended by those within the industry looking for a project, and would most likely bid for those sorts of properties.

So, when you think about the reasons why It’s a no-brainer, really.


How to choose an auction house.

The old saying ‘you get what you pay for’ applies here. Yes, an established auction house will have a high number of clients with a diverse portfolio, and know how to market your property, but it will also cost you a lot more.

A smaller, lesser-known auction house might be more accommodating and lenient towards your property, but the best advice is to always shop around for the best deals that suit you.

There are several things to look out for when choosing an auction house though.

Do you think they able to portray your property in its best light?

Research their promotional material for other houses and assume they’d do the same for yours.

How have their previous auctions gone? Think and research these sorts of things before conducting services with them.


Should I be open to offers before the auction?

Why not? If a buyer is negotiating a price with you, then you know they’re keen.

But then why not let them fight it out in the auction room and see what comes of it? Let the highest bidder rise to the top. Unless they offer you a price that you’re happy with prior.

Also, now that you know what a buyer is willing to pay, you can now set your reserve price.


How do I set a reserve price?

The reserve is the lowest price you will be happy to accept and it shall be kept between you and the auctioneer. If bidding doesn’t hit your reserve then your property would be withdrawn. If an offer hits or exceeds the reserve then the auctioneer will sell the property with the fall of the hammer and there is no option to back out.

It’s important to think this set through. You don’t want to set it too high and not have it sell but you don’t want it too low and lose out on money. There is always the option of negotiating with buyers after the auction.


Setting a guide price

You and the auctioneer will set a price that is made public to lure buyers in. This is the guide price. It is just an idea and not an accurate representation of the final value.


What else should you do before auction?

If you’ve chosen the right auction house and trust them to do their best job to market your property, well then there’s STILL more work to do on your end. Ultimately, it’s in your interest to make sure that the property is looking its best and to be organised with viewings in the coming weeks of auction.

You can also spread the word around friends and family and post on social media to spread awareness as much as possible. Every little helps, especially when coming to auction. Having more bidders naturally fosters a competitive bidding environment which means more potential money for you.


How long does the sale take?

One of the main selling points of auctions is its quick sale time. From the drop of the hammer, the entire process takes 28 days, but this means you need to have the necessary documents and information ready to go straight away. Speak to a specialist auction conveyancing solicitor and draw up a contract before the auction date.


NALC Thoughts

Now there’s only one thing left to say and that is sell with NALC Auctions. Is it quick - you bet. Transactions secure - oh yes and chain free – even better. So if you are still reading this then you may as well go with us, so give us a call…but we would say that wouldn’t we?