Are you unsure what a property auction is? Or unable to explain the sales process? If so, this page might help. It has been devised to answer some of the questions that we are regularly asked and seeks to address any concerns that you may have.
If you are unable to find your exact question or answer below, then either visit our page on auction myths or contact us and we’ll do our best to help.
What sort of people attend property auctions?Auctions are attended by a diverse range of people from all walks of life. Since 2012, we have sold properties to developers looking for new projects; to young families looking for reasonably-priced upgrades; to first-time buyers looking to get onto the property ladder; and to older couples looking for sound investment opportunities.
What sort of properties sell via auction?Stereotypes would suggest that auction properties are either falling down, being repossessed or have severe structural issues. Thankfully, in the 21st century, this is no longer true. In fact, over the past few years, we’ve sold plenty of “normal” terraced, semi-detached and detached houses, although we’ve also sold a fish ’n chip shop, an ex workingman’s pub and a rundown Victorian terrace. As they say, variety is the spice of life!
How can I be sure that auction will achieve the best price for my property?One of the great advantages of going to auction is that you set two prices: the guide price which drives interest, promotes viewings and encourages competitive bidding; and the reserve price which is set by the vendor to protect the property from selling for less than their expectations. Almost all our vendors leave convinced that this combination works very well – why not give it a try?
Can the reserve price be whatever I choose?Yes, the reserve price can be whatever you choose and once set, the property cannot be sold for any less. Normally, however, the reserve price is within 10% of the guide price so that potential vendors are not thrown off course by artificially low pricing.
What’s considered a good result at auction: £5,000, £10,000 or £50,000 above a guide price?It is not uncommon to see vendors achieve between 5% and 10% above the guide price; however, there are normally a combination of factors that lead to such big successes including a bidding war in the room. Ultimately, any sale that satisfies the vendor is a good result.
When is a good time to consider auction: once I have given the open market a try?You can never consider selling at auction too early. Although the open market is traditionally the most popular way to sell property, you risk unnecessarily exposing yourself to property chains and don’t normally secure financial commitment until two weeks before completion. In our experience, there’s nothing better than the prospect of an upcoming auction to force “website watchers” and “tentative viewers” to show their true intentions.