How to sell a property at auction know how important it is to sell quickly and openly. With 18,000-20,000 houses auctioned yearly in the UK, this way is fair and efficient. Choosing an auction means you might get the best price with everyone bidding openly.
Contracts are exchanged the moment the gavel hits, initiating a swift and efficient process. Then, you usually finish the sale in about 20 days. This quick process is liked by many, from companies to personal sellers wanting a fast sale.
Regular house sales through agents can be slow and risky. About a third of these sales don’t go through. Meanwhile, 35% of sales didn’t finish in 2023, showing how often sales fail the traditional way. With auctions, the sale is nearly certain because both sides are legally bound, providing a secure and reliable process.
Are you considering selling your home in the UK? If so, you might be wondering about the best way to achieve a quick, profitable sale. While many homeowners default to traditional estate agents, selling your property at auction is an often-overlooked option that can offer significant benefits. Let’s explore why selling at auction might be the smart choice for you and how we can help in the hand holding process.
1. Achieve the Highest Possible Price One of the most compelling reasons to sell your property at auction is the potential to achieve the highest possible price. Auctions create a competitive atmosphere where interested buyers bid against each other, driving the price up. This competitive dynamic, especially for homes in desirable locations or those with untapped potential, can make the audience feel the potential for a high selling price.
2. Sell Your Home in Just 20 Business Days If you’re looking for a fast sale, auctions are hard to beat. While private sales can drag on for months (typically 14-23 weeks), selling at auction allows you to complete the sale in just 20 business days. This means you can move on to your next chapter much faster, without the prolonged uncertainty and stress that often comes with traditional sales methods.
3. Enjoy a Transparent, Certain Process Selling at auction offers a level of transparency and certainty that can be hard to find with other methods. Once a buyer commits to purchasing your property and the price is agreed upon, the sale is legally binding. Auction buyers must pay a 10% deposit on the day of the auction, ensuring that only serious, committed buyers participate. This reduces the risk of sales falling through, giving you peace of mind throughout the process.
4. Benefit from High Success Rates UK property auctions boast impressive success rates. On average, around 80% of properties sell for more than the seller’s reserve price on the first day of the auction. The overall success rate for auction sales stands at an impressive 75-80%, significantly higher than the 50% success rate typically seen with traditional estate agents.
Are you considering selling your property at auction but unsure if it’s the right fit? While any type of property can be sold at auction, some are particularly well-suited to this method. In this article, we’ll explore the types of properties that tend to perform well at auction in the UK
1. Homes in Need of Renovation Properties that require renovation or modernisation are often excellent candidates for auction. These homes tend to attract a wide range of buyers, including investors, developers, and those looking for a project. Interestingly, homes in need of work often achieve higher prices at auction than they would through traditional estate agents. Auctions create a competitive atmosphere that can drive up the price for properties with untapped potential.
2. Tenanted Properties Houses or flats with existing tenants are popular auction items, as they appeal to buy-to-let investors seeking immediate rental income. Whether it’s a single property or a portfolio, tenanted properties often generate steady interest at auction. If you’re looking to sell a property with tenants in place, an auction could be an effective way to attract investor buyers.
3. Mixed-Use Properties Properties that combine residential and commercial elements can be highly desirable at auction. These mixed-use spaces appeal to a diverse range of buyers, including those looking for a live-work space or investors seeking multiple income streams. Properties with the potential for conversion or change of use can also perform well at auction, as buyers are drawn to the flexibility and opportunities they offer.
4. Commercial Properties Auctions are a popular choice for selling commercial properties, such as shops, offices, warehouses, and development sites. These properties tend to attract professional investors and developers who are comfortable with the auction process. Selling commercial properties at auction can result in a quick sale, as buyers are often ready to move forward with their plans. In the UK, there is strong investor demand for commercial properties, making auctions an attractive option for sellers.
5. Land Building plots, agricultural land, and recreational land can all be successfully sold at auction. Buyers at auction may be looking for land to develop, use for farming or leisure pursuits, or simply as an investment. Land with planning permission for development can be particularly sought-after at auction, as it offers buyers the opportunity to move forward with their projects quickly.
6. Unique and Specialist Properties Auctions can be an excellent platform for selling unique or specialist properties that might struggle to find the right buyer through traditional methods. This could include anything from windmills and lighthouses to historic homes and properties with complex legal issues. The competitive nature of auctions can work in favor of these one-of-a-kind properties, as interested buyers bid against each other to secure the winning bid.
The Advantages of Online Auctions It’s worth noting that online auctions have become increasingly popular in recent years and can be a great option for selling any type of property. Online auctions offer convenience, flexibility, and a wider reach, allowing buyers from anywhere to participate. This can be especially beneficial for properties that might have a more limited local market.
Choosing the Right Auction House No matter what type of property you’re selling, it’s essential to choose a reputable auction house with experience in your property type. This is where UK Auctions can help, with a proven track record of success, a strong marketing strategy, and a dedicated team to guide you through the process.
So, in summary, while any property can be sold at auction, some types are particularly well-suited to this method. Homes in need of renovation, tenanted properties, mixed-use spaces, commercial properties, land, and unique or specialist properties can all perform well at auction. By understanding the strengths of the auction process and choosing the right auction house, you can maximise your chances of achieving a successful sale.
To maximize your chances of success, it’s crucial to properly prepare your property before the auction. In this section, we’ll guide you through the key steps to ensure your property stands out to serious buyers and attracts the best possible bids.
Step 1: Gather Essential Documentation One of the first things you’ll need to do is compile all the important documents that buyers will want to see. This includes:
Having these documents readily available not only makes the process smoother for everyone involved but also helps to attract committed buyers who are ready to act. By being prepared and organised, you demonstrate your seriousness as a seller and instil confidence in potential buyers.
Step 2: Make Your Property Shine First impressions matter, and this is especially true when it comes to selling your property at auction. To make your property as appealing as possible to potential buyers, consider the following:
By taking these steps, you can help your property stand out from the competition and potentially boost its perceived value. A well-presented property is more likely to generate interest and excitement during the auction, which can lead to higher bids and a better overall result.
Step 3: Set a Realistic Reserve Price Setting the right reserve price is a critical decision that can make or break your auction success. The reserve price is the minimum amount you’re willing to accept for your property, and if bids don’t reach this level, your property won’t sell.
To determine an appropriate reserve price, it’s essential UK Auctions find you a good auctioneer who has your interests at heart, we can help you with that process. It’s important they have a deep understanding of the local market and can provide valuable insights based on factors such as your property’s condition, location, and recent sales of similar properties.
It’s important not to set your reserve price too high, as this can deter potential buyers and reduce interest in your property. Keep in mind that around 20% of properties may not sell at auction due to various factors, including market conditions, timing, or an unrealistic reserve price.
Even if your property doesn’t sell at auction, you may still have the opportunity to negotiate with interested parties after the event. We can give you a better idea of the cost of selling your property after our viewing but we can give you a ballpark cost prior to that.
The Auction Timeline The auction process typically takes around six weeks from start to finish. Here’s a brief overview of the key milestones:
Choosing the Right Auctioneer Selecting a reputable and experienced auctioneer is crucial to the success of your property sale. UK Auctions help you find the perfect auctioneer who has a proven track record in selling properties similar to yours and who can provide expert guidance and support throughout the process.
Choosing the Right Auctioneer Selecting a reputable and experienced auctioneer is crucial to the success of your property sale. UK Auctions help you find the perfect auctioneer who has a proven track record in selling properties similar to yours and who can provide expert guidance and support throughout the process.
On auction day, buyers will bid for your property. If the price is right, and it’s more than what you said, it’s sold. After this, the buyer must pay 10% right away. They must pay the full amount within a month. This fast turn means they are less likely to change their mind. The sale usually closes within 28 days.
People who come to auctions are serious about buying. They usually don’t mind if the property needs work. This can work well for you if your property is not in perfect shape.
Learn about the auction process to have a good sale. Work with the right auction house and prepare well. This can help you get a good price through competitive bidding.
Selling your property at auction has many benefits. But, there are some important auction selling risks to know. Auctions can be successful, with a 75-80% sell rate, which is better than agents at 50%. Still, there’s a chance your property may not sell at auction.
About 20% of auctioned properties don’t get a buyer. This might happen because of bad market conditions or wrong timing. It could also be if the reserve price is too high or if the paperwork is not ready. To reduce not selling risk, choose a skilled auctioneer. They can give advice on setting a good reserve price
Thinking about selling your house? Consider an auction or an estate agent. Each way has good and bad points. Think about what matters most: selling quickly, knowing the sale is certain, or the costs.
Selling at an auction is fast. It usually takes just 3-4 weeks to sell. You sign the contracts as soon as they agree to buy, then finish in 28 days. With an estate agent, it might take 14-23 weeks. Then, you still must wait for the money, which can be at least 30 more days.
Auctions are secure. Once someone bids and meets the lowest price set, they must buy it. If they don’t, they could face big fines. So, auctions rarely have deals that fall through, only about 1-5%. But, sometimes houses sold by agents do get cancelled, around 25-40%. This can mean waiting months to sell, maybe not for the price you want.
Auctions can be more expensive. Their fees are usually between 2-4% plus another tax. However, the lowest fee is usually £5,000. The average is 2.5-3%, but it can be less. Don’t forget the extra costs to start and the legal stuff, adds up to at least £400. Selling through an agent is cheaper, usually between 1-1.5%.
Estate agents might get you a bigger sale. But auctions can make people offer more if there’s a lot of interest. On the downside, auction bidders could be looking for cheap fixes.
Deciding is up to you and what you want. If selling fast and safe is crucial, think about an auction even if you might get slightly less. Want the most money and not in a rush? An agent could be better for you.
Selling your property at auction in the UK can be a great choice for a fast sale and good price. Typically, sales complete in 28 days at auctions. There’s a chance for the price to go up because of bidding wars. This is especially true for properties that stand out, need work, or could be good investments. Auctions bring in all sorts of buyers, from private individuals to big investors.
But, selling this way also has its risks. Your property might not sell or might go for a low price. Auctioneers who know what they’re doing can help reduce these risks with advice. Yet, auctions do limit the buyers to mostly locals who come in person. There’s also less chance to show off your property’s best bits, which could lead to it selling for less.
There can be more costs selling at auctions, as they usually take a cut of the sale price15. But for many, the speed and certainty make it a good deal. Once a bid meets your minimum price, the sale is a sure thing. Still, in auctions, there’s a higher risk of buyers backing out than in private sales. So, make sure to think about the good and bad points before you decide.
About 18,000-20,000 homes sell at auction in the UK every year. It’s seen as the fairest and open way to sell, getting the best price when many bid.
You can wrap up your sale within 20 days of the auction. This is much quicker than the usual 25 weeks of a standard sale. Once the electronic gavel falls, contracts change hands, with the property handover within 20 business days.
Most properties can be put up for auction. But, some fit this method better. These might include empty houses, fire damaged sites, and buildings needing work. Also, places with tenants, land, and even churches.
Get all the papers in order that buyers might want to see. Make your place look good before the auction event begins. Also, ensure you set a sale price that’s fair with the help of your auctioneer.
There is a 20% chance your property might not sell at auction. This could be due to various factors. Also, you might not get an offer as high as you hoped for. Yet, bidding can often raise the offer.
Selling a house at auction might involve paying the auctioneer 1.5 to 3% of the final price. Don’t forget advertising costs. Plus, you’ll need a solicitor, whose fees you should look into beforehand.
Choosing between auction and an agent depends on what matters most to you. Auctions sell faster and offer certainty. Yet, their fees are higher. Agents’ sales take more time and can fall through but might be cheaper.
