The Steps For Completing The Sale Of A House Through An Auction
When it comes to selling your house at an auction, there are several steps that you must go through between the initial decision to sell and completion.
Step 1: The Appraisal
The first step in the sale of a house at auction is the appraisal. The appraisal is where the auction house inspects your home and tells you whether it is suitable for sale at auction and how much they think it’s worth. The good thing about the appraisal is that it lets you set an appropriate reserve price? – a minimum price your home must sell for at auction for the sale to go ahead.
Step 2: Negotiate Fees And Commission
Auction houses don’t sell properties for free: they want a cut. The auction house may tell you outright what percentage of the selling price they charge, or they may allow you to negotiate – it depends on the auctioneers you choose.
Remember, even if your home doesn’t sell, auction houses may still demand payment.
Step 3: The Survey
Just as in a regular sale, you’ll need to have your home surveyed. A survey alerts the auction house to any potential issues with the structure of the home. If there are problems, they may reduce their estimate for the value of the house.
Step 4: The Auctioneer Will Market Your Property
Usually, an estate agent would market your property. But when you sell through an auction, you bypass estate agencies and their fees. The job of marketing your property, therefore, falls to the auctioneer.
Some auction houses are better than others. Your auctioneer should advertise your home for sale online, in print and, if they know people who might be interested, over the telephone.
Step 5: The Auction
Once the auction house is satisfied that it’s drummed up enough interest, it’s time for the auction itself. People can bid in person, over the telephone or online.
Step 6: Finalising The Sale
Once the hammer falls, buyers are legally obliged to buy the property and put down 10 percent of the sale price.
How Much Does It Cost To Sell My House At Auction?
Auction houses charge a percentage of the sale price of the property, usually around 2.5 percent. You’ll also have to pay conveyancing expenses, generally around £750, and legal fees to solicitors of around £500.
The Advantages Of Selling At Auction
- Chain-free sales – no need to wait for other transactions to go through allowing you to sell your home quick
- Sell more than one property at once
- Benefit from competitive bidding: people may pay more for a property than they need
The Disadvantages Of Selling At Auction
- Auction fees may exceed estate agent fees
- Bidders might want a bargain and may not pay the full price that you could get if you sold on the open market
- Auctions can be slow, and it may take several months for the money to change hands