Understanding how to sell property at auction can be important for property owners and investors particularly if you have a highly desirable property or plot of land to sell, or if you need to convert your property assets into cash quickly. When it comes to property auctions, most prospective property investors will be aware of the basics of buying a property in this way, but not all of us understand what goes on when you decide to sell property at auction. This could be about to change however, as more and more property owners and investors are recognising the advantages of making a quick sale using this highly effective sales platform.
Before we get in to the detail you should be aware that selling property at auction successfully requires just as much expertise, market knowledge and research as buying at property auction, especially if you are keen to make a good profit and achieve a quick sale.
Investment Property Partners, how to sell property at auction guide covers a number of important factors that you may wish to consider if you are considering selling land or property at auction.
How to Sell Property at Auction
One of the first things that you should do before you sell property at auction is to gather together as much information about your property as you can; detail all its features, potential advantages, and then approach two to three specialist property auctioneers with a good track record in this area.
To increase your chances of achieving a good sale price it is very important that you market your property effectively, be as transparent as possible and highlight its potential to prospective buyers.
Remember that you need to attract as many potential bidders as possible, who collectively on the day of the auction should help to drive up the final sales price.
If you have land or property that you are desperate to dispose of quickly at auction, it may be worth your while selecting an auctioneer based on their sales success rate.
Similarly, if you have a highly desirable plot of land or an unusual property to sell, you could also look for auctioneers who have a good track record with similar properties and also have specialist knowledge and expertise in this area.
Property Auction Reserves & Guide Prices
After you have selected your property auctioneer it is usually a good idea to discuss with them what kind of figure they would recommend as the initial guide or reserve price for your property.
The guide and reserve prices are important as they can help to encourage bidders engage with the sale process, but also protect you financially should there be insufficient bids on the day.
You should also ask your auctioneer about dates of upcoming property auctions and ask their advice about how best to market your property to achieve the best sale price.
Always remember if you’ve selected wisely, your auctioneer will be a mine of useful information, and they’ll certainly be there to help you as they’ve got a vested interest in selling your property for as much as possible.
Good property auctioneers can also be used for advice and will often give you plenty of valuable information that will help you market your property more effectively, bring in more interested bidders and hopefully get it sold for a good price.
Always Prepare an Information Pack
To help sell property at auction and to increase your chances of achieving a good sale price you will need to offer potential buyers plenty of useful information about your property, often the more the better.
With this in mind it may be appropriate to consider having a professional property pack prepared that would typically include structural surveys (where required), and other inspection reports that may be of interest to prospective buyers at the auction.
Auctioneers Fees, Professional Fees & Other Costs
Once you have compiled a good quality and informative pack for your property you may find that you have spent hundreds of pounds in getting everything together, yet if you are smart you may be able to pass some of this cost on to the buyer.
You should also be aware of the auctioneers’ fees and other charges that you may incur including surveyors and solicitors’ fees and also take these in to account.
What about Disclosure of Information?
If you are selling property at auction it is vitally important that you appoint a specialist property solicitor at the outset to help you through the sale process.
A specialist property solicitor can advise you on matters such as the disclosure of information to prospective buyers and what they need to know about the property, such as restrictive covenants, lease details, rent arrears, boundary or neighbourly disputes and similar important legal matters.
If you fail to disclose this type of information about your property you may leave yourself open to potential legal claims by the property purchaser at a later date.
Before you sell Property at Auction
Finally, before you agree to sell property at auction, you should always make sure that you have covered all your bases.
Make sure you understand what would happen if you changed your mind and pulled out of the sale before the auction started.
It is not uncommon for property sellers get cold feet before the auction starts – so make sure you are not going to get financially penalised if you think this may happen to you.
Another common reason why a property may not make it all the way to the auction floor is if someone submits an attractive offer to buy the property before the auction starts and you decide to accept it – make sure nothing comes back on you if you decide to do this.
The Benefits of Selling Property at Auction
Selling property at auction can be rewarding and sellers often achieve a quick and convenient sale, with everything done and dusted in a fraction of the time it would take if a more traditional property sales route had been followed.
Selling property at auction can sometimes also bring you a lot more money than you’d hoped, especially if there are several interested bidders there on the day – but only if you do it right.
Property Sellers Auction Checklist
If there are just a few things that you should remember when selling property at auction it is these:
On the Day of the Auction
Not many people know this… but if you sell property at auction you don’t actually have to go to the property auction itself.
This is because your auctioneer will deal with all the bids; the signing of the contracts and take the deposit on your behalf.
Despite this, some sellers like to witness who their property is going to, but also to learn about the prices people are willing to pay, who is actively buying and what types of land or property sell well – if you are a regular auction seller then this can be a great source of market intelligence.
If you’ve prepared in the right way selling property at auction can certainly be a rewarding experience, and one that will help should you ever decide to go down the property auction route again.
Property Investment Solutions
As a leading independent property and land investment specialists Investment Property Partners offer expert advice and support to clients across our specialist areas of expertise helping them to achieve their investment objectives.
If you are a property investor searching for commercial property, residential buy to let or overseas property investment opportunities please contact us today to discuss how Investment Property Partners can help you.
More information about auctions, including property auctions… here →
More information about property auctions and property auctioneers from the National Association of Valuers and Auctioneers… here →