Selling at Auction

Properties are usually sold by auction in order to obtain the highest market price, and as the market finds the best price it is a good method if it would be otherwise difficult to put a value on a property, for example if the property is unusual.

Auction Costs

Auctioneers fees are approximately the same as those charged by estate agents (about 1-3 %), but you will also need to pay the preparation costs. These are the charges made by the auctioneer to prepare a brochure and for any advertising. You will also need to arrange for a solicitor to carry out the legal work for you.

You should remember that you will have to pay auction costs even if the property does not sell.

How it Works

A date for completion is set before the auction, usually 20 working days (4 weeks) after, and this information is included in the selling guide.

If the auction is successful the auctioneer will sign the contract on your behalf and receives the 10% deposit. The remaining balance is usually required within 20 working days, and this will be specified in the contract drawn up beforehand.

The aim of the auction is obviously to exceed the asking price but if you do not reach the reserve price you can still sell privately to an interested party, possibly immediately after the auction.

Selling by auction can be a swift process so you should ideally have made arrangements for new accommodation and storage for furniture if necessary.