What is a modern auction?

A traditional auction takes place at a pre-arranged time and place and is only suitable for cash buyers or buyers with large deposits. Modern auctions are quite different:

• A member of the Heywoods team - experts in local property - will take a look around your property and conduct a pre-marketing appraisal.
• Once an undisclosed reserve price and a starting bid are agreed and an auction pack of property details, photos, EPC rating and legal documentation is prepared, pre-auction marketing begins. During this time, prospective buyers may commission surveys.
• The auction goes live at an agreed date and time. Prospective buyers download the auction pack and accept the terms before bidding. The process is conducted online with buyers registered and logged onto the auction website. Buyers are also able to place telephone bids. The time length of the auction is not pre-determined and can vary depending on the volume of interest.
• Physical auction events are held at the Molineux Stadium, Wolverhampton. Whether a property is auctioned at an event or online is dependent on timescales and a completed legal pack. This will be discussed with you as an option.
• The property sells to the highest bidder (on or above the reserve price) who must then pay a reservation fee to meet the terms of the sale and secure the property.
• Completion takes 28 to 56 days. This gives the buyer time to arrange any mortgage - so the pool of potential buyers is bigger with a modern auction.
• The seller keeps the full price achieved with no estate agency fees to pay.

Who can buy at auction?

Modern auctions no longer require cash buyers - they are open to everyone, whether or not you require a mortgage. The auction process is quick and easy so if you see a property you like the look of, get in touch.

Why choose to auction?

While most property sales are done by suggesting a price and inviting viewings, in some circumstances a property auction can be a better option.

• There are no sales fees.
• Unusual, run down or difficult to value properties are good options for an auction sale as well as popular properties (due to location, condition etc) with multiple interested parties.
• You are more likely to achieve a sale.
• The whole process is quicker.
• There are no worries about gazumping or having to renegotiate.
• You may not achieve as high a price as for a conventional sale but there are no estate agent fees or costs associated with a drawn-out sales process. Some properties, where interest is high, achieve higher sales prices.

What are the costs?

Heywoods does not charge estate agent fees on auction properties. The seller must pay for the preparation of legal documentation for the auction pack (usually around £150). The reservation fee, payable to Heywoods, is made by the buyer; this is usually a percentage of the selling price. Conveyancing and EPC fees are payable by the seller.

Want to know more? Find out how easy it is to sell via auction.