Guide to selling
property at auction

Selling property at auction remains a popular way to sell property and with the changes in the financial climate over recent years makes the auction option even more attractive for both sellers and buyers alike. Properties are being bought and sold by big organisations like housing associations, pension schemes and investors with large portfolios through to owner-occupiers with single units. The future for auctions looks robust. As more and more people become aware of the auction process through websites like www.propertyauctionaction.co.uk and TV programmes such as Homes Under the Hammer and Property Ladder auctions will get more attention from buyers and sellers alike. Read on to find out what is involved in taking your property to auction.

There are many advantages to selling at auction

Unlike private treaty (usual estate agency house sale process) auction properties change hands when the gavel (auctioneers hammer) falls. The contract is legally binding at this point unlike private treaty where the house is sold subject to contract. So there is no nervous waiting around to see if you are going to get your money. The sale completes and money transfer happens normally within 20 to 30 days of the auction.

Finding an auctioneer

Use www.propertyauctionaction.co.uk check out what auction houses are near to you. Talk to several auctioneers. They are very approachable and will be able to give an appraisal as to whether your property is suitable for an auction sale. Auctioneers have many years of valuable experience and will be able to give you lots of good advice. They will also advise on the best guide and reserve price with which you should enter your property into the auction in order to realise the best possible price on the day.

Auctioneers undertakings

The chosen auctioneer will confirm their terms of appointment all charges (including the commission rates for sale on the day, sale after auction or no sale at all), get in contact with your solicitor, gather together the necessary paperwork, liaise with others to get Searches, Planning Permissions, Specialist Reports, Tenancy agreements, Architectural Plans and get Special Conditions of Sale prepared for your property. This will all contribute towards the legal pack which potential buyers can inspect on or before the auction. There is usually a fee for interested parties to get a copy of the legal pack before the auction. Auctioneers may also provide services for putting up sale boards and showing potential bidders around the property. This may be done at set times before the auction. Some auction houses also provide the services of Internet and telephone bidding to compliment the bidding in the auction room itself on the day.

Visibility

Auctioneers put a lot of resources into advertising their auctions using newspaper and magazine adverts and producing glossy catalogues in order to gain maximum coverage for your property before the auction. They also use websites such as www.propertyauctionaction.co.uk that will get you maximum exposure on search engines such as Google.

Before the auction

You need to have your solicitor on standby well before the auction. They will want to see the auctioneer's general conditions of sale and any description that the property will carry into the auction making sure that any disclosures that need to be made are fulfilled with the narrative in the catalogue or any amendment sheets that go with it. The seller will have to satisfy the requirements of the anti money-laundering act to the auctioneer with proof of identity. The auctioneer will keep you informed of the level of interest in the property and also process any pre-auction offers.

You must inform the auctioneer of any circumstances regarding the property which change before the auction or if you are withdrawing the lot.

On the day

Before the auction commences officially time is set-aside for potential bidders to enquire as to any last minute changes. Final amendments to Catalogue details will be circulated to those attending. Each Lot is described prior to being offered, and hopefully after competitive bidding will be sold on the fall of the gavel, with contracts being effectively exchanged at that point. The clerk or auction administrator will instruct the buyer on signing the sale documentation and transferring the 10% deposit to be paid on the day. If the property does not reach reserve then you need to know how the auctioneer will proceed at this point both on and after the auction day.