If you want to sell your property within a fixed timeframe it might be worth considering an auction. And if you are looking for a property to do up either as an investment or as a home, checking out our auctions listings could be a good place to start. You can find some guidance on how auctions work as a seller or a buyer below, but if you prefer to talk it through face to face then just drop in to our local office and we’ll be happy to help.
If you are thinking about selling a property through an auction we are here to make it easy for you. We will view and list the details of your property along with a guide price to give buyers an idea of what you are expecting. We would usually agree a reserve price with you, which is the minimum you are willing to accept for the property. A solicitor would then prepare the legal pack for the property with details for the buyer, along with draft contracts. And finally we would agree on a date for the auction to close, usually 2-4 weeks from the point the listing goes live. This gives buyers a chance to view the property and get their finances organised so they are ready to bid.
If you are interested in buying a property at auction the process is also straightforward. Start by looking out for properties on our auction listings and contact us to view those you are interested in. Once you have set your heart on something then the next step is to ensure your finances are in place – if you’re successful in bidding for the property you will have a set number of days to exchange and complete, so having everything in place beforehand is really important. Next you should ask for the legal pack from the seller’s solicitors, with the conditions of the sale and local authority searches. Finally it is always worth getting a survey done on the property to make sure you know what you are taking on. With all this sorted you are now ready to decide on your price limit and start bidding.
There are two ways exchange and completion happens when an auction finishes. The chosen method is agreed at the start of the auction by the seller.
When the Traditional Method is chosen the successful bidder is obliged to exchange contracts as soon as the auction finishes, at the same time as paying a 10% deposit. The buyer then has 28 days to complete.
If the Modern Method is used, the successful bidder doesn’t have to exchange immediately. Instead the buyer pays a non-refundable fee to reserve the property, and then they have 56 days to exchange and complete.
There are pros and cons to be considered with auctions, both for sellers and buyers.
As a seller the pros are:
- The whole process can be a lot quicker than the traditional way of selling, and you get paid quicker
- Buyers are often looking for projects, so if your property needs significant renovation auctions can be a great way of selling
- Properties with legal complications or other issues can be easier to sell through auction
On the other side, the sellers should also be aware of the following:
- You’ll need to move out quickly following a successful auction as exchange and completion happens much faster
- Auctions are not right for all properties. Typically bidders are looking for discounts and projects
For buyers the pros are:
- You might find a bargain
- You can move quickly
- Once the winning bid is agreed it’s more certain – no gazumping here!
Things for buyers to consider carefully:
- You have to know your limit, and be prepared to be outbid, which could mean you have wasted your time
- You need to have the money ready very soon
- By the nature of many auction properties you need to be realistic and think carefully about the amount of money which will be needed for renovations. It can be tempting to get carried away by the apparent bargain you are getting, but make sure you have the total outlay in mind when you bid.
- We are here to advise and support you through the whole process, whether you are a buyer looking for a project or a seller with an unusual property you want selling fast. Pick up the phone or come in to see us face to face and we will talk you through your options.
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