What’s the process of selling at auction?

1. Auction appraisal
2. Sign
3. Solicitors
4. Marketing
5. Reserve price
6. Auction day
7. Completion

If you’re wondering ‘should I sell my house at an auction?’ but aren’t sure of the process, or if you can afford to do so, then this article is perfect for you. We’ve outlined some of the main questions that homeowners have about selling at auctions to give you all of the information you need to make a decision.

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What are the positives of selling at an auction?

• Selling through an auction can be the quickest way to sell your house if you’re not able to/willing to wait the average 6 months to sell, as selling at an auction usually takes about 8 weeks
• The buyer will pay 10% of the selling price at the end of the auction and is then given 30 days to pay the remaining 90%, meaning you know that your payment won’t be delayed
• There is a legal bind once the house sells, so you have no risk of your buyer dropping out
• Prices can be driven up if more than one bidder is interested in your property
• If your reserved offer isn’t reached, you don’t have to sell the house, you can choose to re-list another day or go to another auction
• The auctioneers will help you decide on a reserved price based on your house and their previous sales
• Auctioneers will advertise your property for a couple of weeks before the auction to get some interest and attention from bidders.

Are there negatives?

• Potential buyers are sometimes put off by an auction sale as the environment can be quite intense and not suited for everyone
• Bidders have to register with the auction house to attend the auction, which may also put buyers off if they don’t want to go through the screening
• You might not get as high an offer as you were hoping for, and there’s no guarantee on a sale either
• It can be a little pricey selling at an auction compared to selling through an estate agent, as you will have to pay the fees even if your house doesn’t sell
• You will need a solicitor on the day of the auction, whom you’ll need to pay for their time.

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What’s the process of selling at an auction?

1. Auction Appraisal

Once you’ve chosen which auction you want to sell your house through, your house will be appraised. During this, you will be given the benefits of selling an auction, how much to expect for your house and some suggestions on choosing your reserve price.

2. Sign

You’ll need to go through the terms and conditions of the auction house and sign the legal documents. You also need to get the papers together to sell your property such as the deeds. At this point, the auction house will create a draft description of your house to advertise before the auction.

3. Solicitors

At this point, you need to appoint a solicitor to handle the legalities of selling your house and to put together a legal pack that will be given to the new owner of the house at the end of the auction so they have the rights to the property.

4. Marketing

Your chosen auction house will market your house for around a month before the auction to gain some interest and reel potential bidders in.

5. Reserve Price

It’s worth taking into account the advice you were given about the reserve price when you had your appraisal, as getting it right is important. Setting the price too high might put bidders off, and although going lower could encourage bidders to bid against each other and drive the price up, it could also leave you with a low offer if the bidders don’t take the bait and mean you lose out on some of the value of your house.

6. Auction Day

The day of the auction will see how much your house sells for. It will start at your reserved price and then hopefully increase nicely before a final bid is put in and the house gets sold. Contracts are exchanged straight after the auction, a 10% down payment is made, and there is a legal contract between you and the buyer of a house sale.

7. Completion

It will usually take around a month to finalise the sale after contracts get exchanged during the conveyancing process, but there is no risk of the buyer changing their mind as it is a legally binding contract.

Knowing the positives and negatives of selling at auction along with the process will make the decision of whether ‘should I sell my house at an auction?’ easier for you as to whether you sell your house at an auction.
If you are looking for a quick sale but are put off by the fees or the risk of no sale, get in touch with us at We Buy Any House today. We can provide you with a free offer on your property along with a timeframe for the sale, keeping you involved every step of the way.

We buy any home in as little as 7 days, or timescales to suit you. Head to our website for more information.

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