So you want to sell your house and a property auction seems a good way to go about it, Correct!
Unlike the conventional method of selling through an Estate Agent, selling at auction can be a quick, convenient alternative. Our guide will enable you to achieve the most amount of money for your property and provide you with experts tips to guarantee a sale.
1) Choosing an Auction House is KEY!
This tip may seem obvious but is often overlooked by most and is arguably the most important. Choosing your nearest property auction house may seem like the most sensible option. However, this is not always the case and careful consideration needs to be made when assessing your property’s likely buyer and the types of buyers who will be attending the prospective auction house.
An example of this would be – Selling a metropolitan 1 bedroom apartment at an auction whereby the majority of their properties are countryside cottages, bungalows and building plots.
2) Ensure The Marketing Is Accurate.
All to often it seems properties are wrongly advertised at auctions and it costs sellers heavily. Before the auction catalogue has been published, ensure that all the details for your property are correct and accurately present the condition, size, use and value of the property.
When flicking through the auction catalogue, potential buyers will only spend a few seconds assessing the suitability of each property. Poor photos or a description that does not paint an accurate picture will quickly be disregard.
3) Allow Access To All Areas.
Buying at auction can seem like risky business and any unknowns will only further deter prospective buyers. We therefore recommend you allow the auction house and viewers access to all crooks, crannies, lofts, garages, basements and whatever other facilities you may have. If your property is in a state of disrepair, ensure viewers can safely peruse the whole building without any hazards or obstructions. Provide the staff member conducting the viewings with all keys and codes so no doors or rooms left unseen.
4) Spruce Up The Place.
If the property you are selling is habitable or requires light refurbishment then don’t forget to make your property presentable. Removal of large furniture and clutter will allow viewers to get a true feel for space. Minor repairs or decoration may allow a buyer to move in straight away without requiring any delay or work, this will mean they won’t expect a discount but to pay full market value.
Sweeping of the yard, cutting back unruly hedges and light general garden maintenance could be all it takes for a buyer to go a little higher when in the auction room.
5) Appropriate Guide & Reserve Price.
The surveyor conducting the initial visit at your property should be able to provide you with an accurate guide price range, which they expect the property to sell for or around. When choosing a starting guide price be sure to considering the following things. Your Reserve Price (the minimum amount you are willing to sell for) has to be within 10% of the lowest Guide Price. Too high of a guide price will instantly deter prospective buyers and will reduce interest and thus reducing the odds of any bidding competition. Too low of a guide price may not be favourably accepted by the auction house as it does not reflect the property value, it would also require you to lower your reserve price accordingly (risky!).
6) Create A Buzz!
The more people in the auction room bidding on your property, the more likely it is to achieve a higher price. Share your listing on social media, with friends and colleagues.
In the Event of a No Sale.
Due to the nature of auctions, a sale is not always guaranteed with auction houses typically averaging completion rates between 70-90%. When lots are unsold at auction it is possible for buyers in the room to further negotiate with sellers but this typically results in the reserve prices being lowered further.
Sellers who do not manage to sell their properties at auction typically have to wait a further eight weeks before a sale can be completed after the next auction.
Want to avoid to uncertainty of auction, the costs and the waiting? Contact us today for a guaranteed cash offer within 48 hours of viewing. We can complete in as little as 10 days!