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Everything you need to know about selling your home at auction

Everything you need to know about selling your home at auction
11th May 2022

When considering selling your property by auction, it can be rather daunting if you do not know the process involved.

Property auctions can not only create an exciting atmosphere but can be an excellent alternative method of sale to help streamline the process, meaning you find a committed buyer right then and there!

Here are ten things you should bear in mind when considering selling your property at auction:


1. 
Many property types are suitable for auctions

Property auctions are suitable for most property types, including; residential building land, tenanted, commercial and residential property (including ground rents).

Auctions are also suitable for development opportunities where the buyer is likely to receive a significant return on their investment.


2. Proof of identity

Before the Auction Team can register a property in the auction, the seller must provide proof of identity and address.

These checks are required under the Anti-Money Laundering Regulations, and you may be asked to provide a recent bank statement, passport, utility bill or other official documents.

 

3. Inform your solicitor

When you decide on your chosen sale method, you must communicate with your solicitor to ensure that the correct paperwork is prepared for the sale.

Due to the fast-paced nature of auctions, the contract is prepared pre-sale so that the buyer is aware of all legalities upfront allowing exchange to happen at the fall of the hammer.

 

4. Property re-inspection

Once your property is registered, the Auction Team will inspect your property; they will take measurements, draw up new floor plans and take new images for advertising.

At Bramleys, we will use this information to extensively market your property in our online catalogue, website and social media..

 

5. Guide Price and Reserve Price

The auctioneer will help you determine a Guide Price, which indicates where the Reserve is presently set but should not be taken as a valuation or estimate of the sale price.

Your property's reserve price is the minimum figure that the seller currently authorises the auctioneer to sell the property.

Notably, the reserve can change throughout the marketing and should not exceed the guide Price by more than 10% if it is a single figure guide price.

 

6. Binding contract

As soon as the auctioneer's hammer falls, a legally binding contract is formed between the buyer and seller. Crucially, the price is now non-negotiable, and the buyer is obliged to fulfil the payment agreed on the auction day...

A formal exchange of contract will occur shortly after this - and the seller will have absolute certainty that their property has been sold.

At Bramleys, we have achieved a 100% success rate on multiple occasions and raised sales above £3.5 million for clients.

 

7. Bids can only go up

Selling at auction eliminates problems such as gazumping - when someone makes a higher offer of a house when someone else is already in the buying process. The offers can only increase in value, meaning that a potential buyer can never reduce their offer on the property.

Auctions are therefore particularly valuable for selling vacant residential properties, particularly those requiring refurbishment, renewal or modernisation. As the bids can only increase, the focus remains on the property's value, not any issues or downsides to the building.

 

8. Fast turnaround

We all know how much effort moving house is, so it is well worth packing your home up in advance of the auction to ensure the process is as smooth as possible.

Once the property has sold, Bramley's standard terms require completion to take place 28 days after the auction (or sooner). This means you need to be ready to vacate the property within a short period, as the seller should also be prepared to move in within this time frame.

 

9. Deposit

One of our most important Auction Conditions is that the deposit (normally 10% of the purchase price) is due to be paid immediately on the fall of the hammer unless agreed otherwise.

This amount would need to be paid via bank or electronic transfer to ensure the payment is secure and fast. For more information on our Common Auction Conditions please refer to our handy guide.

 

10. Property auctions are now online

Online auctions have the added advantage of being able to bid pressure-free from anywhere you wish via desktop, tablet or mobile.

View our current selection of auctions online, on our innovative platform for buying and selling property. For help with registering your interest, or for more information, view our Online Auctions Buying Guide.

 

Next Steps

At Bramleys, we schedule four property auctions per year, and these are held within the heart of our operating region at the John Smith's Stadium, Huddersfield.

For a FREE appraisal of your property, contact our Auction Team by calling 01484 530361 or emailing auctions@bramleys1.co.uk.

For more property tips and tricks, you can browse our blog or follow us on Twitter, Facebook or Instagram for updates on everything home-related.

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