Selling at an auction is the best method for people who want to sell their property as quickly as possible. Just remember to pack your things in time because you will have to hand over the keys to your house, 28 days following the auction date.
Also, be sure you pick an auction house that would fit your preference. This includes selecting an auctioneer who deals with property similar to yours, and within the same price range. Picking out an unfitting auction house significantly reduces your chances of attaining a favourable deal on your property. Moreover, acquire a property valuation before you settle on the reserve price, so as to protect yourself against a greatly unfavourable sale.
The Possible Costs
The auctioneer will charge you for the adverts in catalogues and brochures; a fee that you will have to pay regardless of whether your property is sold or not. Moreover, there’s also the commission of around 2.5% of the selling price that you will have to pay.
Before agreeing and signing to any agreement, take note about all the possible expenses that you will have to pay because you’ll still have to cover those fees even if your house won’t be sold.
- Decide the reserve price – this should be based on your valuation; but you should still refer with the auctioneer before setting on a final price.
- Arrange a contract – instruct your hired solicitor/s to make a contract which encloses your desired terms and conditions for the sale; this will then be incorporated in the brochure.
- Property viewings – prospective buyers will want to have a look at your property and some of them may even want their surveyors to assess it.
When the deal closes, the sale will then be official and legally binding. The property buyer will have to pay you with 10% of the agreed sales upfront, and the remaining balance should be settled within 28 days after the auction. If the buyer fails to do so, the logical thing to do is to sue him.
There are certain kinds of properties more apt to be sold at auction than by normal means. These would include:
- Repossessed homes – these typically needs to be sold as quickly as possible to cover the former owner’s outstanding debts.
- Properties high in demand – at the peak of an auction sale, the price paid for such properties can substantially surpass their projected market value.
- Unusual properties – these are rather difficult to value and often bought by aficionados for their distinctiveness.
You can never be sure of how much your property will sell for. An auction is an extremely unstable marketplace; if there is no demand on the day of your sale, you might end up selling it lesser than its appropriate market value.
You will also have to pay your solicitor to be present at the auction day in order to reorganize any last-minute indiscretions or complications, and his can be quite a pricey affair.
Lastly, selling your house at auction sale can be more costly than selling it via an Estate Agent. You will also have to cover certain expenditures even if your property does not sell at the end.
Table Of contents
- Home Selling Guide Intro
- Knowing When To Sell Your House
- Expenses Involved In Selling Your House
- Who Will Sell Your Property
- Valuing your Property
- Choosing An Agent
- Selling Your Home Privately
- Selling A Property At Auction
- Preparing Your Property For Sale
- Property Viewings
- Conveyancing For Sale
- The Sale Completion