How To Sell Your London Property At Auction?
Entering a Property Auction London can be the ideal option if you’re looking to sell your home. The truth is that selling a house can be very difficult, and more often than not, it requires a lot of time. But the reality is that you don’t always have the time to wait for a buyer. It might take a week to sell your property, or it might very well take months to do so. This is why it makes a lot of sense to enter a Property Auction. It’s very efficient. you often get to have a very good return on investment without spending extra money on marketing and promoting your property online.
What Is A Property Auction London?
As the name suggests, this is a process through which you are selling a property in London in an auction-style format. Potential buyers share a bid, and the property is sold to the highest bidder. To keep in mind about every Property Auction London, it always has a starting point, a minimal value for the property. So if you decide to sell your London property at auction, you’re not losing money. Instead, you’re most likely getting a fair selling price, or if you’re lucky, some bidders might even pay a bit more.
How Does The Property Auction London Work?
Keep in mind that interested buyers will check the property information, assess, and see if it’s worth it for them, then they will bid against the others. When there’s a single bid left, and no one competes against it, the auctioneer will strike the hammer, and the bidding process is over.
At this point, the Property Auction London will require the winning bidder to put down at least a 10% deposit so he can ensure this sale is secured. However, he has a month to fulfill that payment, otherwise the sale will not be finished.
It’s always a great idea to go to a Property Auction and sell the property because you have many more buyers interested in what you have to offer. The auction draws people in, whereas regular house selling requires quite a lot of effort from your side. Thankfully, that’s not the case when it comes to a Property Auction. You enroll your property in the auction, provide all the necessary details and information, then wait until the auction is over to see the sales price and how much your house sold for.
Property Auction London Steps:
The first step is getting an appraisal. The auction house will come and appraise your property, thus setting a starting point for the auction. They will have a reserve price, but the thing to note here is that there’s no obligation to go through with the auction.
Once you agree to the idea of auctioning your property, then you must sign the terms and conditions before the auction starts.
Working with a solicitor to draw a legal pack is very important. This way, you can hand the property rights to the highest bidder.
After these steps are completed. The auction house will start promoting your property. That’s great, because they take care of everything, and you don’t have to worry about doing it yourself. Usually, they will post information on their website, but they might also use social media and publications to generate buzz.
Based on that appraisal and the marketing campaign results, a reserve price will be set by the auction house. This reserve price is basically the starting bid, and then potential buyers will go from there. Sometimes bidders can be put off by a rather high reserve price, but for the most part reserve prices are within reason, and sometimes they can be a great deal. It all depends on the property.
As a seller, you don’t even have to attend the auction day. Buyers will bid on your property and then they provide a 10% deposit; after that, they have a month to complete the purchase. In general, it takes a month for the sale to be finalized after contracts are exchanged.
What Are Buyers Interested In A Property Auction?
You will notice that there are different types of buyers coming at a regular Property Auction London. Most of them are regular property buyers, but many developers want to improve on existing homes and spruce them up. Then there are also landlords focused specifically on renting those properties, after they fix them up. And yes, there are also property re-sellers who buy the property for a good price at auction and then try to sell it for a profit.
All these categories are coming to Property Auctions, and they all focus on getting the winning bid. That’s great for you as a seller, because the more interest is there on your property, the better the ROI you can achieve. And that alone can make a massive difference if you do this right.
What Should You Know About Property Auction Fees?
It’s imperative to note that the Property Auction London fees can vary quite a bit, it all comes down to the auction house you are using and other similar factors. It’s pretty common for auction costs to be up to £1200 plus VAT for the solicitor. the auctioneer fee that’s around 2.5% of the house value added to that.
Some of the auction houses can charge additional fees, so it’s essential to study and see what fees you are dealing with and what will be charged. It’s all a crucial aspect to keep in mind, especially if you want to avoid any additional fees. However, even if your property doesn’t sell, you still need to pay the auction selling fees. On top of that, some auction houses will charge for advertising costs. As you can see, prices are very different based on what auction house you use and their own rules. But for the most part, it’s still worth it to use a Property Auction because they handle the advertising and sale process for you.
Is Your Home Suitable For The London Property Auction?
Normally, every home is suitable for a property auction. But there are some things you need to keep in mind here. For example, if a home is in a highly sought-after region. if it’s dilapidated or a niche property. That might bring in a higher price as a whole. The same thing can be said about properties that are in high commercial demand.
As we mentioned earlier, many Property Auction London buyers are looking to renovate or improve a property, then sell it. That means they are a lot more focused on getting a property they can re-sell, and they don’t want one where they can live with their family. Depending on the situation, you will have some of those buyers too, so the auctions can become rather competitive. With that in mind, the more features and complex qualities the property has, the higher the sales price will be in the end. This is exactly why it makes a lot of sense to go ahead and sell your property at auction since it’s extremely helpful.
Are You Allowed To Take Offers before The Property Auction London?
It’s very common for some properties to receive pre-auction offers, more often than you might imagine. At this point, it’s up to you if you want to take the offer or if you want to go to the auction. With that in mind, auctions have a certain amount of uncertainty, and it’s possible that the property may not sell at all.
You want to wait until the auction day because whenever you receive pre-auction offers, this is a sign that your property is generating quite a lot of interest. As a result, you may end up getting more money at the auction itself. Sure, there’s always the fear that your property might not sell. However, if you’re already getting offers pre-auction, this is a telltale sign that you are indeed on track to earn at least the amount you want for the property, if not more.
Is There A Difference Between The Reserve Price And The Guide Price For The Property Auction London?
The reserve price for the Property Auction London is the minimum price a seller accepts as a winning bid for the property. One thing to keep in mind here is that the reserve price is confidential between the seller and auctioneer. It’s a good idea to have a reserve price, but it needs to be realistic, otherwise, the property might not sell the way you want.
Guide prices are the estimated market value of the property. The auctioneer sets this value to encourage buyers to set their bids. Auctioneers will use their skills in order to ensure that the guide price is adjusted accordingly for the best possible experience.
How Much Time Does It Take To Sell A House At The Property Auction London?
It’s always important to understand that selling a house at auction isn’t the simplest possible thing. Sure, it beats the idea of trying to market the property on your own. Participate in the auction and then actively sell the property. Normally, it takes anywhere from 6 to 10 weeks to sell the property. That’s a thing you want to consider as much as possible.
The fastest way to sell a property is to work with a company that buys homes for cash. They are usually the ones delivering a fantastic return on investment. And the value you receive is certainly worth it this way. You don’t have to deal with auction fees or anything like that.
Do You Have To Pay Any Money If Your Home Doesn’t Sell At The Property Auction London?
Yes, every Property Auction House has its own fees that you have to pay. You will need to pay those just because you enter the auction. So even if your property sells or not. You won’t have to pay any commissions if the property doesn’t sell. Yet you must ensure that you pay all those auction fees, which is extremely important to keep in mind.
Should You Use A Cash Buying Property To Sell Your House Fast?
If you’re looking to sell your property quickly. The truth is that something like the Property Auction London might not be right up your alley. It can take up to 2 months to get your money. And even then, the buyer can drop the property at any moment, even if he paid a 10% reserve. That’s why it’s a much better idea to work with a cash buying property company.
The company will offer you a cash deal. If you accept it, you get paid within a few days, if not faster. This is the ultimate way to sell a property quickly. Without worrying about any type of downsides or a long waiting time. You get the best price and a free valuation, plus you don’t have to make any repairs. The company will handle everything for you, so you must agree to the offer and get paid. That means you are leaving them to deal with any repairs or anything like that.
This type of purchase is great if you’re dealing with a divorce, relocation, repossession. And financial troubles, inheritance properties, short leases, or if you just want a cash buyer. It’s a great idea, and it helps bring in a very good set of results without any issues.
Sell Your Property At Auction
If you’re trying to sell your property fast through auction, Sell House Fast Group can help. We have a range of different options that can help you sell your property quickly and efficiently at auction.
We work with all the major auction houses across the UK. We can manage the auction process for you, including a free valuation, setting the sale price and saving you costs, ensuring you get the best deal.
Benefits
- Up To 100% Of The Market Value
- Completion From 30 days
- Save Money On Auction Fees
- Free Valuation and Advice