A guide to selling your property by auction
Our Auction Department can provide help and advice if you are considering buying or selling a property through an auction. Using this method of purchase carries the advantage of achieving a quick sale at a reserve price. At Robert Oulsnam and Company we hold regular auctions as well as auctions held online. Our staff will also provide advice and guidance on considerations such as reserve and guide pricing, the importance of recceing and surveying the property, necessary deposits, and the distinction between the modern and traditional method of buying and selling.
The majority of residential property sales in the UK are conducted by local estate agents selling by private treaty.
There are however circumstances where it may be beneficial to sell your property by public auction and we would be delighted to assist if this method of sale is appropriate for your needs.
Critically, however, it is important to assess which method of sale is best for you and we would be pleased to meet with you in order to discuss this in detail.
In very general terms if you are to sell your property successfully by public auction the following must apply:
- You must be determined to sell your property on the auction date at the best price achievable on that date.
- You must be prepared to quote a realistic guide price range and reserve price in order to attract competitive interest in the property.
- The guide price range is the price advertised within the marketing campaign and the reserve price is the price below which the property will not be sold at the auction.
- This reserve price can be agreed close to the auction but must be set within the 'guide price range'.
- You must allow reasonable time between the date of marketing and the auction to allow prospective purchasers to view and consider their proposed purchase. 5-6 weeks would be ideal.
- Access for viewings will be necessary and would be arranged by ourselves.
- You will need to appoint solicitors at the time of marketing who will prepare an auction contract in readiness for prospective purchasers to inspect.
What are the benefits of selling by public auction?
On the day of the auction, assuming a bid is received over the reserve price, exchange of contracts is deemed to have taken place on the 'fall of the hammer'. The successful bidder will be required to sign the contract and provide a deposit in the sum of 10% of the auction price.
Completion will then take place 28 days later.
The auction process therefore eliminates the 'sold subject to contract' agreement in a sale by private treaty and gives certainty to the sale on the day of the auction.
What properties are suitable by sale by public auction?
Any property can be suitable for sale by public auction subject to the price required by the owner and the determination of the owner to sell on the auction date. Most properties sold by public auction would however fall into one of the following basic categories.
- Properties in need of repair, modernisation and improvement.
- Properties believed to be unmortgageable such as those of non-traditional construction or with known or suspected structural defects.
- Particularly unique properties perhaps of immense charm and character in sought after locations where competitive interest in envisaged.
What to do next
If you think your property may be suitable for a sale by public auction contact your local Robert Oulsnam & Company office.
We will advise you on whether we feel your property is suitable for public auction and advise on our charges and where we go from here.