For certain properties selling by Auction can unlock the maximum value. One of the most common myths we hear is “oh you are selling this property by auction because you have no interest in it”. This statement could not be further from the truth. We sell property by Auction because we know there will be demand for it.
Here is the Robin Jessop Ltd’s guide to selling your property by Auction.
This is the first step in the selling process. A property Auctioneer will visit you at your property whether that is a piece of woodland, amenity land, agricultural land, building plot, residential house, small holding or farm and give you a FREE market appraisal. The Auctioneer will advise you on whether your property is suitable to sell by auction. Certain types of land and property are suitable to Auction providing that all legalities are in order.
Any bidder will want to see a full legal pack prior to bidding at Auction. A full legal pack allows a bidder to purchase with confidence and confidence is key! The auctioneer will liaise with your Solicitor to ensure a full legal pack is prepared prior to the auction. The legal pack contains the contract for sale and searches etc that any diligent prospective purchaser and buyers solicitor will want to examine before buying a property at Auction. The legal pack highlights if there are any issues with your property that need sorting out before the marketing process.
To sell a property by Auction you need to allow 6 weeks of marketing before the actual auction. This can be done through the newspaper advertising, the auctioneer’s website, the property portals and social media. We always recommend a “For Sale” board with a descriptive slip at the property advertising when the auction is to take place.
We recommend that you use Auctioneers with specialist viewing staff, who conduct viewings at times to suit prospective purchasers. At Robin Jessop Ltd we often hold open viewings. Competitive demand is encouraged so that people can see that there are lots of prospective buyers interested in the property.
Guide prices are provided as an indication of each seller’s minimum expectation. They are not necessarily amounts, which a property will sell for and may change at any time prior to the auction due to the level of demand. The more realistic you can be with your guide price the more interest you will have in your property.
Each property is offered subject to a reserve. This is a figure below which the auctioneer cannot sell the property during the auction. The reserve should not be set above the guide price. The reserve price is confidential between client and auctioneer.
On the day of the Auction
The auctioneers will register all prospective purchasers in readiness for bidding. Once the auctioneer starts the auction the process is very simple. On the fall of the hammer the property is legally sold. The successful purchaser signs the contract and pays 10% of the sale price that day. This is a legally binding contract. There is no backing out or gazumping.
Completion of the sale
This is the date when the property is legally transferred from seller to purchaser. Normally within 28 days the property sale is completed and you receive your money, i.e. the 90% balance of the purchase price is paid.
Auctioneers fees vary between 1% and 2.5% depending on whether they include advertising.
Why sell your property by auction?
Auction is the cleanest and most transparent way to sell property and that is why some property sells better by this method, particularly where there is a lot of competition. On the fall of the hammer the property is legally SOLD. From “For Sale” to “Sold” in 6 Weeks – you can’t get better than that! We invite all prospective clients to visit an auction we are holding that way you can see how it all works.
Our next property auction is to be held on 17th February 2016.
Contact Robin or a member of his team to discuss how we can help you!