How to Sell Property at Auction
Have you considered selling your property at auction?
If this thought has crossed your mind, carry on reading to discover all the ins and outs of how to sell a property at auction.
What is the selling process?
Our initial consultation offers a no-obligation appraisal. We will advise you whether a sale by auction is the best way to achieve the highest price. If so, an estimated sale price and recommended reserve price will be provided.
Guide prices - We will agree a guide price with you which will reflect your minimum acceptable sale price. We will endeavour never to mislead our buyers by quoting a guide price that is lower than the agreed reserve price.
Fees and terms - After our initial appraisal we will agree with you our terms and conditions of appointment, including entry fees and commission.
Proof of identity - Under Anti Money Laundering Regulations we require proof of your identity and address before we can market your property. If you are representing the seller, these checks will also have to be made on the seller.
Once we have been formally instructed, the property will usually be inspected by one of our surveyors, measurements will be taken where appropriate, and the property will be photographed.
Draft sales particulars will then be sent to you and your solicitors for approval. Your solicitor will be asked to prepare a legal pack, which will be made available on our website during the marketing period.
Every property in our auction catalogue benefits from wide exposure through intensive marketing campaigns. Here is how we use marketing to help sell your property at auction:
- Direct marketing to registered subscribers- We send regular email alerts to our large databases of potential buyers built up over the past 100 years
- Portals- We list suitable residential properties on the major property search portals
- Advertising- We run online advertising campaigns for each auction. "For Sale" boards are erected where appropriate
- Targeted marketing- Alongside this broad marketing, we target individuals who have previously expressed an interest in similar properties, as well as adjacent occupiers, local agents, local developers, builders and property companies
- Reporting - During the marketing period, all interest and enquiries are logged. We maintain close contact with all serious buyers and record the number of enquiries made. This allows us to advise you of the strength of interest in your property, as well as reporting any price indications or offers made prior to the sale
- Online documents - Our online legal system deals with requests for documents. We will keep you advised of the number of legal packs downloaded by prospective bidders during the course of the marketing
Reserve price - Two or three days before the auction, we will report the final levels of interest and discuss any changes to the previously agreed reserve price.
5. Auction day
Binding contracts - On the fall of the gavel there is a binding contract and the purchaser is legally obliged to complete the purchase. A 10% deposit is paid to Allsop LLP (minimum £2,000). A buyer’s fee is also payable to Allsop.
Buyer checks - Under Anti Money Laundering Regulations, we carry out full checks on all buyers and bidders before the auction.
Unsold lots - In the event of any lot remaining unsold, we normally expect our instructions to continue for a period of 45 days after the sale. We will contact all previously interested parties and invite best bids. In our experience sales are more likely to be agreed immediately following the sale when post-auction interest is at its strongest.
Once the property has sold, our standard conditions require for completion to take place 20 working days after the auction. This may be varied by your solicitor in the Special Conditions of Sale.
The Benefits of Selling Property at Auction
Discover all the advantages from multiple disposals to best price and speedy process.
We know that there is a lot of information and things to remember when it comes to selling at auction.
To help, we’ve answered some of our most frequently asked questions below. If you have any other questions please contact us.
FAQs: Selling at Auction
Most properties are suitable for sale by auction. However, auction may not always be the best route to market. We will always advise you if we feel that there may be an alternative method of sale which might better suit you or the property.
We have a wide range of vendors of both residential and commercial property ranging from owner occupiers and private investors to pension funds, property companies, receivers, trustees, banks, government bodies and local authorities.
If you would like to discuss the selling process with a member of the team, or if you wish to discuss a property you might wish to sell at one of our auctions, we would be happy to hear from you.
To give you the best possible advice, all we will need to see initially would be:
- Full address of the property including postcode
- Photographs (external and internal if possible)
- Tenancy details (if applicable)
- Floor plans, room sizes and/or areas (if available)
- Title plan
Under Anti Money Laundering Regulations we require proof of your identity and address before we can market your property.
As the seller, you will have to pay us an entry fee. This is to cover costs including listing your property within our catalogue as well as marketing and advertising. Another cost to consider is our commission which will be charged after the property has sold. The final cost is any solicitor fees although this isn’t exclusive to selling at auction.
Generally speaking, there isn’t any point at which a property is too large to go to auction. If a property is likely to generate competition, then it will be suitable for auction If you’re concerned, please get in touch with us and we’ll let you know whether we think your property might be better suited to an alternative sale method.
A guide price can be a specific figure or a range and is used to give bidders an idea of the seller’s minimum expectations.
Reserve price is very different to the guide price and refers to the minimum price that you, as the seller, would accept for your property at auction. Bidders aren’t able to see the reserve price as this information is only shared between the seller and auctioneer.
Deciding whether to accept offers before the auction is completely up to you. However, we will always advise you whether we feel selling prior to auction is the right thing to do. If there’s a lot of interest in your property, it’s often best to hold your nerve and allow bidders to compete on auction day.
Sometimes selling property at auction doesn’t go to plan and bids don’t reach the reserve price. In the event that your property doesn’t sell at auction, we will list it as unsold and invite offers from previously interested parties. Any bids received will be reported to you. We will be happy to advise on whether to accept or reject offers.