Sell Property at Auction
Find out about the pro’s and con’s of selling your house or flat at auction. Properties in need of modernisation often sell for more at auction compared to an estate agency sale.
If you’re interested in a quick and reliable sale, then you may wish to consider selling at auction. Depending on the type of property you are selling, an auction sale can be a good way to achieve full market value in a short timescale.
However, there are some drawbacks to selling at auction. Although auction is considered a reliable route to selling it’s not guaranteed and the final sale price will not be known until auction day, when contracts of sale are exchanged. This can make planning an onward move quite difficult, so it’s not suited to all circumstances.
One of the disadvantages of selling at auction is that if there is a limited level of interest in a property then it will either fail to sell, or only sell for the reserve price (minimum selling price). If a property fails to sell at auction and the auctioneer is not able to arrange a sale after the auction then it’s back to square one for the seller. So, if you’re looking for a sale by a particular date then you will need to set a very low reserve price to ensure the property has the best possible chance of selling.
For more information about selling your property at auction and to view upcoming London property auction dates, we recommend contacting Auction Link for further details.
When it comes to choosing a London auctioneer, there’s quite a lot of choice. There are around 20 property auctioneers, each holding between 5 and 10 auctions per year. The lead time from entering a property into auction until completion (when you received funds from the sale) is around 8 weeks. The commission payable at auction is typically about 2% of the sale price, which will only be payable of the property successfully sells. Similar to estate agents, auctioneers work on a no sale no fee basis.
A broad range of property is sold through the auction room. It’s quite common to see probate properties sold at auction because of the transparent nature of a public auction sale, it ticks the boxes for many of the responsibilities an executor has to fulfil.