If you are needing to sell your home quickly, an auction could be a great route for you, however, it is important, to know the various procedures, that occur when a house goes to auction, so that you are not taken advantage of by the auctioneer , or get carried away by the excitement of the event taking place. Prospective buyers especially in London, all want their hands on your property, we hope. This can increase the price of the property, but be careful.
Selling at auction – why?
* If a quick and effortless sale , is what you require, auctions are a good way to accomplish this. When the auctioneers hammer falls, the buyer must pay a 10 percent deposit, and within a month the remaining 90 percent.
* Multiple buyers, are separate to out bid each other, not wanting to miss the chance of owning the property. This will help the price to rise substantially.
* If your property, shall we say, is run down and in a bad state of repair, it maybe difficult, to advertise its potential to buyers. They could be looking for a property to move into straight away, without any added expense for repairs. At auction, however, expert buyers, or buyers wanting to get to grips with an on-going project, can see the full potential and market value of your home.
Selling quickly, because you are moving location, and relying on the money to finance your next property, is a good reason to sell your house by auction. As long, as your property attains a good realistic price,and doesn’t go for peanuts. Creating enough interest, so that by the end of the auction, you are happy with the end result and the price.
How much will selling at auction cost?
* An auctioneer, will expect to get at least 2.0percent of the price, achieved for your property, and advertising costs, maybe added on, so check this out!
A solicitor, will be needed to sort out the legal side of the sale, before the auction takes place. Shop around, for a reasonably priced solicitor, who provides a good service. Ask friends, if need be for their recommendations.
Which auction house should I choose?
An auction house, that is well established, will have the knowledge and experience to know how to market your property, creating maximum interest. However, if you have concerns about expense, you have to weigh up the pros and cons of using them, with how much they will cost. A lesser known company maybe cheaper, and maybe more accommodating. research, is always, an important factor. Look at promotional material for other houses. Is it up to scratch? and could it be beneficial to put your trust in them, to show your property in its true light to potential buyers? There is also the option of selling online via an online auction.
Offers in advance of the auction ?
It is unthinkable, and serves no purpose, to sell your property before it goes to auction, once you have decided to use the services of an auctioneer, and paid their necessary fees.
A buyer, may try to coax you into selling, before going to auction. If this happens, you know there is a spark of interest. It is more feasible, to let the interested parties, fight it out with other potential buyers. If they are truly interested, they will pursue, and be happy to offer what the property is worth. Depending on how quickly you need to sell you may want to also consider any offers from quick sale agencies at this stage. When you find out, what one buyer is willing to offer, then that will set the scene for your reserve price. If you put the property up for sale, you may worry that the potential buyer, has more information on the creditability of the sale, than you. So, putting the property up for auction, gives you an idea of what people could wish to pay.
Don’t be pressurised into going to auction
Think carefully, before you decide to go to auction. There is no turning back, once the hammer falls, and you sign contracts on the spot. Second thoughts, are not negotiable. If the agent seems to be pressurising you, speak to your acting solicitor, and take a step back.
Can you advise me, on how to set the reserve price?
Your reserve, by nature, is the lowest price you are willing to accept. Nobody knows your price, except you and the auctioneer. If the offers are too low, the auctioneer will withdraw, your property and pull it out of the listings of the auction. The auctioneer, will drop the hammer, when someone offers the reserve price, or above, which is your lowest acceptable price. There is no turning back, so think seriously. Remember to look around, try different estate agents and services before agreeing to anything. We found this company in Glasgow very good at quick house sales.
You may need, to be more realistic and lower your price, if your property has been on the market already, and there have been no offers, for the price anticipated by you. negotiation, can take place with the buyer after the auction, if your reserve has been set too high on reflection.
The guide price
The auctioneer, will sort this one out. The public, get to know this price, which may draw potential buyers in. It’s a clear idea of what the property is worth, if it is lower than the reserve, you won’t necessarily have to accept it.
What can be done before an auction?
The auction house itself, should be working hard to market your property. On the day of the auction, you could loose out, if the buyers aren’t looking for your kind of property at your price.
You need to make sure your property, has ‘kerb appeal’ and viewings from prospective buyers, need to be taking place before the auction. make sure, the property is up to scratch, and looking its best. You, for your part, need to make sure, in all quarters, that potential buyers, are aware of your up and coming auction. Promote your property, to friends, family and any interested parties via social media.
How quickly after the auction will I get my sale?
Going to auction, is a quick way of selling property. It could be as quick as a month. You must be prepared to move and uproot, once the sale is made.