Many believe property auctions to be one of the fastest and most profitable ways to sell your house. Let the buyers fight it out in the auction house and they’ll drive up the price, right? Well, this can be the case, but you need to know what you’re doing and ensure that the auction house doesn’t leave you in a weaker position.

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Why sell a house at auction?

If it’s a fast sale you’re after and you can’t afford for a buyer to back out, then auctions are a pretty reliable way to go. When the hammer comes down at the auction house the buyer needs to put 10% down as deposit and then they have a month to pay the remaining 90% balance. The positives of selling at auction are;

• Having multiple potential buyers in one room means that the price can be driven upwards fast.
• If you have an ‘unconventional’ property you may find it hard to sell through traditional methods. Auctions are the best places for properties like this.
• If you need to sell fast and move out quickly and you set a realistic price then your home can sell fast at auction.
• Once the hammer’s dropped a buyer can’t back out. And if they do change their minds there are legal rules in place to keep you protected.

How much does it cost to sell at a house at auction?

Expect to pay your auctioneer around 2.5% of the price you get for the property; remember to check in advance if there are any advertising costs. You’ll also need to pay a solicitor to help with the legal side prior to the auction and on the day. Solicitor’s fees vary so shop around for a good price and service.

How do I choose an auction house to sell my property?

Find out what auction houses there are locally and pick up some of their promotional material. Research how they’re promoting other properties on their books. Also see if they have reviews online and if you can, find someone else who has used them. This is often the best way to gauge the quality of an auction that’s going to sell your home.

Setting the reserve price to sell your house at auction

A reserve price will be the lowest you’ll take. The reserve price for your house will be kept just between yourself and the auctioneer and if no offer exceeds your reserve price it’ll be withdrawn from the auction.

If someone offers the low reserve price and no one makes a higher bid, the property will be sold for that price so consider this carefully. We have put together a comprehensive guide on pricing your house here.

Setting a guide price

This is different to the reserve price in that those attending the auction to buy can know it. The auctioneer traditionally helps set a guide price that’s designed to entice buyers in.

How quickly will my house be sold after auction?

The speed of sale will depend on when the auction is set for. Once the sale is complete it can take as little as 28 day sfor everything to be completed. Bear in mind though, that you will have to be ready to vacate the property within this time frame.

Auctions aren’t the only way to sell your house quickly though. We Buy Any House are one of the UK’s most trusted fast house sale companies and have helped thousands sell their homes fast and for up to 90% of market value. We can provide you with a free offer today and get your sale underway.

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