The guide to selling a house at auction and alternative options
Looking to sell a house at auction? It can be a good idea if your property has structural issues or any other problems that could prevent it from selling on the open market.
Below is a rather large article around everything you need to know about selling a house at auction and whether it's right for you, but here are a few of the highlights:
Quick cash buying companies, like ours, can buy any property and prevent the cost of selling a house at auction. We'll buy the house in any condition and will save you the hassle of having to sell your property yourself.
There are several things to remember when you are considering selling a house at auction route. To help you understand how the whole process works, we’ll walk you through it:
Buying & selling a house at auction is relatively straight forward, but if you’re new to auctions then we’ve got some information to offer you an insight into how the process works:
The whole process of selling a house at auction takes around 28 days, but it might be sooner, depending on if you accept an early bid or a buyer settles their remaining balance faster than expected. If you want to sell properyt at auction fast, remember the tips we gave you above about presenting it in it's best light!
Selling a house at auction can be a relatively quick process, you're looking at anywhere between 6 to 10 weeks as long as your house sells during the auciton of course, this also depends on how long it takes for the auction house to actually put the house up for auction. As long as you set a reasonable asking price and reserve then you hopefully shouldn't have an issue in getting the ball rolling on your sale.
No - not necessarily. Those who buy from property auctions are typically looking for a different kind of property than the open market, but if your property is suitable for the auction you could well get what you expect. It depends on the auction and the interest on the day as to whether you are able to drum up a bit of a bidding war, but that is something an auctioneer should be able to provide help on. People who buy property at auction are usually more savvy than your traditional buyer, which is something to take into consideration.
If you’re considering selling a house at auction then it is really important to weigh up the pros and cons of this service.
✔ Quick sale - properties bought at auction often complete in 28 days, so you could have your next project on your hands within just a few weeks.
✖ Sale isn’t guaranteed
✔ Chain-free - immediately after an auction, contracts are exchanged and you're legally bound to buying the property. This means that no-one can offer higher and take it off you. During the auction you'll see what other people bid for the lot, so you won't have to decide if you trust an estate agent saying what others may have offered.
✖ Uncertainty over how much over your reserve price you’ll make until the auction actually takes place
✔ Competitive – you could get a great price for your property if it is marketed to create a buzz
✖ High fees – entry fee as well as possible commission fees once the auction completes
✔ You keep control because a buyer can’t legally pull out
✖ You’ll need to move out quickly because the completion time is only a matter of weeks
✔ Property investors - many investors go to property auctions in the hopes of grabbing a bargain. This often comes in the form of a property much in need of repairs. Property investors who can afford to do up a house can sell it on for a profit. Other people purchase properties with a view to let them.
✖ All sales are final so you may feel disappointed if you don’t get what you expected and you can’t back out should your personal circumstances change
There are alternatives to selling a house at auction. Quick cash buyers can buy any property, in any condition and for a fair price.
Selling a house at auction could cost nearly £1200 plus VAT in solicitor’s fees and then the selling at auction fees are on top of that, at around 2.5% of the final sale price of the property. Even if your property doesn’t sell, you’ll have to pay the auction fee. The Property Buying Company covers all legal fees and doesn’t charge commission, meaning that the amount we offer you is the amount you’ll receive.
It can be tricky trying to choose an auction house to sell your property with, there are so many to choose from! Who you choose to go with depends on what you are trying to sell, there are sometimes specialist auctioneers for your particular property, especially if it is quite unique. That being said your best option is usually to go with a larger auction house as they tend to have a bigger database of investors that they can outreach to immediately, according to NetHousePrices.com here are some of the top auction houses that cover most the UK:
Setting the right guide price is key to getting a quick sale through an auction. The guide price is the price that the public are aware of and you should use it to capture the attention of as many buyers as you possibly can. Your auctioneer should give you a steer on this but it all comes down to what you think the market value of your house is. It's just to provide an idea of how much the house is worth and even if you put it lower than your reserve you don't have to accept any of the offers. If you are still unsure then you can visit our "How much is my house worth" page for more information.
The reserve price is simply the lowest price you will be able to accept - it completely depends on your situation but again this is something that your auctioneer can help you with. If all the offers you get on your property are lower than this then your property will be withdrawn. Think long and hard about it though, if someone offers your reserve price then the hammer will drop and you can't drop out at this point!
If you get your reserve wrong and nobody offers high enough, don't worry. After the auction has finished you can still negotiate with any of the buyers at the auction.
Before your property goes to auction it will be marketed to buyers via the auctioneer and you could potentially get a number of viewings prior to the auction day. At this point you will sometimes find that potential buyers make you an offer before the auction and it is then up to you as to whether you want to take that or risk going to auction.
It would be wrong for us to say whether you should accept this offer or not because it depends on your personal circumstances, if you want a quick sale as a priority then you may want to accept it, however if someone is making an offer prior to the property going to auction it often means that they think there will be a high demand for it so they're trying to prevent a bidding war.
If a property doesn't sell when it goes under the hammer then it will usually be withdrawn from sale. If there has been any interest from people at the auction, the auctioneer will usually see if they want to post a bid after the auction has ended. If there's been bids below the reserve the auctioneer will put these forward to you in order for you to decide whether you want to accept it.
If there's no interest, you might have to look at an alternative option as opposed to selling a house at auction.
Although a number of properties can do well at auction, it is a gamble. If you don’t meet your reserve then you’ll still have to pay the selling at auction fees and sell your property. Always seek advice from the auctioneer before agreeing to sell your house via this platform. They are experienced enough to let you know if your property is likely to sell and for how much. Don’t go ahead with it if you feel uneasy about anything and if you need a quick sale of your property remember that there are other options available to you.
After reading all the above, do you perhaps think that auctions aren't particularly your best option? Well you might be curious as to find what other options you have available, here are your main choices:
Consider a quick sale company
Selling a house at auction can be a great way to get rid of a problem property and it can be pretty exhilarating. However, if you want to guarantee the quick sale of your property then a quick cash buyer could be a better option. The Property Buying Company will offer you a fair cash sum, will complete in a timescale to suit you and will include all legal fees so there are no hidden extras to worry about down the line. What’s even better is that no property is off-limits, even ones that are in need of a lot of renovation or repair.
What happens if a property doesn't sell at auction?
The property will then be withdrawn from the sale and the auctioneer will ask any interested bidders to speak to them afterwards in which point they can make a bid directly to yourselves.
Do I have to accept the highest bid?
No, not unless the bid is over what you set as your reserve price. As soon as the offer goes above the reserve then the highest offer will be accepted.
How quickly will I have to move out?
It depends upon which auction option that has been selected and the auction house you choose however generally speaking you are looking at anywhere between 28 - 56 days.
If the prospective buyer does not agree to pay the fee do I lose my offer?
You will need to talk to your chosen agent about this, they can advise you accordingly.
How much can you get from our we buy any house service?
Complete a few details to see if your property qualifies and get a cash offer – remember we buy any property, in any condition, in any location!
5 simple steps to having your property sold!
Our quick (but thorough) 5 step sale process means we can buy your house fast and at a great price
Check to see if your property is eligible check now
Receive an offerfrom us within 24 hours
We’ll visit your property & formalise our offer
We’ll instruct solicitors and pay all fees
Exchange contracts & complete as usual
Why choose us as your cash house buyers?
We’re one of the leading we buy any house UK companies for residential/commercial property and land in England and Wales. We buy using our own cash house buying facility meaning we can offer the best prices in our industry and complete the sale quicker than anyone else.
|Your options||Average sale length||Typical cost to you|
|The Property Buying Company||2-3 weeks||£0.00|
|Other House Buying Companies||2-10 weeks||£1000|
|Property Auction||6-10 weeks||£2500-£5000|
|Online Estate Agents||16-52 weeks||£1000(upfront)-£5000|
|Estate Agents||16-52 weeks||£5000|
Unlike most of the other options available to you, we are not a broker or middle man, meaning you skip the fees and get a sale quickly and easily.
The Property Buying Company is registered with the Property Ombudsman and is a member of the National Association of Property Buyers
Properties bought by us for cash in
the last 3 years
Of our own money spent buying
property for cash
Average time taken from initial offer
We'll beat any genuine cash offer!
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