THINKING OF SELLING YOUR HOUSE AT AUCTION?

Find out all you need to know from timescales and costs through to the legal requirements for selling your home at auction right here.

The AuctionMyHouse team is here to guide you through your auction experience.

How much will your house sell for at auction?

Looking to sell your property at auction?

Or maybe it is already for sale but not shifting?

Are you interested to see how much it may be worth at auction?

Fill out the form below and a member of the AuctionMyHouse team will be in contact to arrange a free no-obligation auction valuation.

Looking to sell your property at auction?

Or maybe it is already for sale but not shifting?

Are you interested to see how much it may be worth at auction?

Fill out the form below and a member of the AuctionMyHouse team will be in contact to arrange a free no-obligation auction valuation.

Enter the property details here for your no obligation valuation:

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I agree to the storage and handling of my data by Auction My House in accordance with their privacy policy

Why should I sell my house at auction?

Selling your house through auction provides:

A Committed Buyer

Transparency at All Times

No Seller Fees, get 100% of the Price Paid!

Shorter Completion of Your Sale

Guaranteed Minimum Sale Price

Sell your house at auction and have an immediate binding sale.

Of primary importance to you as the seller is that you achieve the best possible price for your house and an auction can not only help you reach a target value, it is also likely to result in a quicker sale –sounds good? Read on for the key information you need.

The major difference between property auction selling and an ordinary property sale is that at auction a binding contract is concluded when the hammer falls. That means no waiting for an Exchange date and no back and forth between solicitors for weeks, which means less stress!

In addition, unless a buyer has paid for searches to be carried out on your property prior to the auctions, no searches are required to be carried out. In ordinary conveyancing transactions searches can take anything from 3 – 12 weeks to be completed. With an auction, the successful bidder is committed to complete the purchase whether or not they have made any enquiries about the property.

Ready to sell your house by auction?

Enter your details HERE for your no obligation valuation

Auction FAQs – your questions answered

Is my property going to sell?

To maximise the chances of you being able to sell your property at auctions, there are two key elements to make it a success.

First of all as the seller you need to be motivated, committed and realistic about the auction of your house, and secondly you need great marketing exposure. AuctionMyHouse is partnered with the very best auctions agents who are dedicated to providing the very best marketing for your property. The team at AuctionMyHouse is happy to discuss with you the most effective pricing strategy for your property, complete the form below and you will be contacted soon.

Does the buyer have to pay a fee and if so does this come off the sale price of my house?

Yes the buyer has to pay a fee at auction, but this does not come off the sale price at auction of your house. You lose nothing, the fee paid by the buyer means you do not have to pay a sales fee.

How quick is an auction transaction?

You will have control over this in the main, but as a ballpark you are looking at 4-8 weeks. If you after looking to sell your house quickly, auction is good choice. Complete our contact form and the AuctionMyHouse team will be in touch. A member of the team will usually be able to see your house quite quickly and there may well be an auction coming up very soon for you. If you agree to the advised sale price (which will be keen and attractive), a quick sale ought to happen for you.

Do I have to accept the highest bid?

The short answer is no. As the seller your house will be sold with an undisclosed minimum reserve price.  This price is agreed with you as the seller and any change to this price has to be agreed with you. The only price that the public will see will be the starting bid and then the actual bids; the reserve price remains confidential. The beauty of selling your house at auction is that it can NEVER undersold!

How will my property be marketed?

Auction properties are promoted more heavily than the traditional estate agent route. Your house when sold through auction will be added to the major property websites such as Rightmove and Zoopla , along with being sent to an email database we have of active and keen auction buyers. In addition, press advertising will form a key part of the strategy to promote your house along with social media and introducing local prospective buyers to consider buying at auction

How is auctioning my house different to selling it via estate agents?

The main difference is that selling your house by auction is governed by a fixed timescale for exchange and completion. Exchange occurs on the fall of the hammer at the auction on the date of the auction, with completion often occurring as quickly as 28 days later. Selling your house by private treaty (through an estate agent) offers no fixed timescale and is often part of a chain of house sales and purchases meaning that exchange and completion can take much longer.

Another key difference is the in which the value of your property is assessed. When selling our house by auction, an auctioneer will use a pricing strategy that generates interest from multiple buyers and in doing so will encourage the ‘bid up’ system in an auction environment. The final selling price for a house sold at auction will either be similar or even exceed those achieved via estate agents.

Auction provides speed and certainty, removing the often long drawn out and emotionally draining process caused by a traditional sale.

How do I proceed?

Easy – complete the contact form below and AuctionMyHouse will be in touch!

Selling your house at auction – an essential guide

Step

01

Auction appraisal

Complete our contact form for a free appraisal from the AuctionMyHouse auctioneers; each appraisal will include a suggested reserve price and details of fees.

Step

02

Instruct your auctioneer

Once you have decided that you want to go ahead and auction your house, you will need to formally instruct the auctioneer and auction company by signing the terms of engagement. Once this is done, details and pictures will be taken so that your house can appear in the auction collateral for potential buyers to see.

Step

03

Instruct your solicitor

Your solicitor will prepare the legal pack which includes the local searches on your property. These are usually a local authority search, a water search, environmental search and a search with Land Registry for information on the property’s title. Any prospective buyers will rely on this legal pack for basic information on the property such as boundaries etc.

Step

04

Marketing your house for auction

Good marketing is key to the success of your house at auction. Auctioning your house commands high profile marketing, usually at both a local and national level, with a hard copy of your house auction information sent by post and/or email to interested parties.

Step

05

Your reserve price

This is the guarantee that your house will not be sold at auction for less that its reserve price. This price is confirmed with you prior to auction. Your house will never be undersold at auction.

Step

06

Auction day

This the day where you may agree a sale price and exchange on your house! All of the prospective buyers and interested parties will be invited to have the opportunity to place a bid for your house on auction day. This can be by phone, a person acting as proxy and even online as well as in the auction room itself. Once the hammer falls on a price a legally binding contract of sale is formed. The buyer then is required to make a payment of a percentage of the sale price determined by the auctioneer.

Step

07

Completion

In order for a completion of the sale to occur the auctioneer will issue your instructed solicitor with a Memorandum of Sale which is a requirement by law under what is known as Common Auction Conditions.The normal period of time to completion in most auction transactions is 28 days.

Step

08

What happens where a property hasn’t sold?

These are known as unsold lots. This is where in the event that a property doesn’t sell at auction, the auctioneer will contact all interested parties and make the property available post auction. In many cases properties that are not sold on auction day will be sold a few days later.

What does the timescale of an auction look like?

You have decided you want to auction your house – but what happens and when?

Once you have decided to auction your house, it is advised to do the following before signing the auction terms of engagement:

READ MORE...

1. Instruct a solicitor; let your solicitor know that you plan to sell at auction.
2. If the house you are planning to sell at auction is your home where you live, have plans in place for where you will be moving on the completion date.
3. If you are selling the property with vacant possession, make sure it will definitely be vacant by the completion date. i.e. you’re ready to serve notice to any tenants etc.
4. Based on your reserve price, will the proceeds be the right amount for your future plans?
5. If, prior to deciding auction is the right route for you, you’ve been signed up to a sole agency agreement with an estate agent then now is the time to serve notice to them to avoid the risk of paying double commission.

Six to eight weeks before auction

Six to eight weeks before auction

Once you have decided to auction your house, it is advised to do the following before signing the auction terms of engagement:

READ MORE...

1. Instruct a solicitor; let your solicitor know that you plan to sell at auction.
2. If the house you are planning to sell at auction is your home where you live, have plans in place for where you will be moving on the completion date.
3. If you are selling the property with vacant possession, make sure it will definitely be vacant by the completion date. i.e. you’re ready to serve notice to any tenants etc.
4. Based on your reserve price, will the proceeds be the right amount for your future plans?
5. If, prior to deciding auction is the right route for you, you’ve been signed up to a sole agency agreement with an estate agent then now is the time to serve notice to them to avoid the risk of paying double commission.

Four to five weeks before auction

By now you are looking at a deadline to enter your property for auction listing and you will need to have:

READ MORE...

– Signed and returned the terms of engagement with auctioneer.
– Provided all the details of your solicitor to the auction house.
– Be prepared for your house selling!
– By now your legal pack ought to have been prepared by your solicitor, it is worth considering that some searches, often the local authority ones, can take some time to arrive so early application for the searches before the auction date is strongly recommended.
– You need to check and sign off all marketing materials prepared to promote your property to ensure you are happy with them

Four to five weeks before auction

By now you are looking at a deadline to enter your property for auction listing and you will need to have:

READ MORE...

– Signed and returned the terms of engagement with auctioneer.
– Provided all the details of your solicitor to the auction house.
– Be prepared for your house selling!
– By now your legal pack ought to have been prepared by your solicitor, it is worth considering that some searches, often the local authority ones, can take some time to arrive so early application for the searches before the auction date is strongly recommended.
– You need to check and sign off all marketing materials prepared to promote your property to ensure you are happy with them

This is when auctioning your house becomes exciting and the marketing intensifies.

READ MORE...

– The beauty of auction is that it drives competition for your house and there could potentially be many prospective buyers fighting it out to buy your property.
– Alongside the usual channels of marketing, social media, direct mail and email, the auction catalogue will be printed and distributed to target prospects ranging from experienced investors to first time buyers.
– Along with the details of all properties up for auction, at this point viewing times are released for ‘open house’ viewings.

Three weeks to go!

Three weeks to go!

This is when auctioning your house becomes exciting and the marketing intensifies.

READ MORE...

– The beauty of auction is that it drives competition for your house and there could potentially be many prospective buyers fighting it out to buy your property.
– Alongside the usual channels of marketing, social media, direct mail and email, the auction catalogue will be printed and distributed to target prospects ranging from experienced investors to first time buyers.
– Along with the details of all properties up for auction, at this point viewing times are released for ‘open house’ viewings.

Only two weeks to go!

At this point you may well have received questions regarding your house from prospective buyers – if you are able to answer these well, it can be helpful.

READ MORE...

Providing good and valid information about your house will help bidders feel confident about placing their bids.
At this point you may have received some offers on your house; if they are realistic and attractive to you then you can choose to accept an offer prior to auction day and your property will be withdrawn from the auction.

Only two weeks to go!

At this point you may well have received questions regarding your house from prospective buyers – if you are able to answer these well, it can be helpful.

READ MORE...

Providing good and valid information about your house will help bidders feel confident about placing their bids.
At this point you may have received some offers on your house; if they are realistic and attractive to you then you can choose to accept an offer prior to auction day and your property will be withdrawn from the auction.

You will be provided with feedback on the marketing activity which has been happening for your house. You need to ask your auctioneer or two key things:

READ MORE...

– 1. How many people have viewed your property?
– 2. How many legal packs have been requested?
– 3. Have there been any telephone or proxy bids received?

If there has been very little interest, it is often due to there being no legal pack – this is therefore an essential part of the preparation.

Just a week to go!

Just a week to go!

You will be provided with feedback on the marketing activity which has been happening for your house. You need to ask your auctioneer or two key things:

READ MORE...

– 1. How many people have viewed your property?
– 2. How many legal packs have been requested?
– 3. Have there been any telephone or proxy bids received?

If there has been very little interest, it is often due to there being no legal pack – this is therefore an essential part of the preparation.

Auction day!

You do not have to be at the auction as the seller – but it can be quite exciting to watch!

READ MORE...

– When your house is up, the lot number will be announced by the auctioneer with the address of the property and a brief description of it.
– Don’t be worried if the starting price appears low, this is done to stimulate interest and allow the bidding to gain momentum. If the marketing has proved successful you could have lots of bidders fighting to buy your house!
– Often the bidding is led by 2 or 3 keen bidders, and this is all that is needed for the bidding to keep increasing!
– When the bidding reaches just one person your house has found its top price!
– The auctioneer will then invite the audience to have their last chance to make a bid before letting the hammer fall and your house is SOLD!
– At that point contracts are exchanged and the successful bidder is taken to the “contracts room” to complete the necessary paperwork and pay the deposit, which is usually 10% of the purchase price.

Auction day!

You do not have to be at the auction as the seller – but it can be quite exciting to watch!

READ MORE...

– When your house is up, the lot number will be announced by the auctioneer with the address of the property and a brief description of it.
– Don’t be worried if the starting price appears low, this is done to stimulate interest and allow the bidding to gain momentum. If the marketing has proved successful you could have lots of bidders fighting to buy your house!
– Often the bidding is led by 2 or 3 keen bidders, and this is all that is needed for the bidding to keep increasing!
– When the bidding reaches just one person your house has found its top price!
– The auctioneer will then invite the audience to have their last chance to make a bid before letting the hammer fall and your house is SOLD!
– At that point contracts are exchanged and the successful bidder is taken to the “contracts room” to complete the necessary paperwork and pay the deposit, which is usually 10% of the purchase price.

Ready to auction?

Enter your details HERE for your no obligation valuation

I want to auction my house – why do I need an auction pack?

What is an auction legal pack?

When a property is being sold through an estate agent (private treaty), it is the responsibility of the buyer to have their solicitor carry out the relevant searches and legal enquiries on the house they are purchasing.

However when selling a house at auction, there may be dozens of potential buyers who show interest in your house so it does not make sense to have them all have searches carried out. The burden therefore lies with the seller to have their solicitor prepare the Auction Legal Pack which will be made available to all prospective buyers prior to the auction date.

Ensuring that the legal pack is available in good time is key to giving your house the best possible chance of selling on auction day, failure to provide a properly executed legal pack could deter prospective buyers from bidding as they may not feel fully informed about your house.

A comprehensive legal pack ensures that your potential buyers do not feel like anything is being ‘hidden’ from them and therefore give them confidence in making their purchase

What’s included in the auction legal pack?

Depending on the type of property you are selling, the contents of a pack will vary. Nevertheless for any property the starting point is to show to buyers that you do actually own the house you are selling!  This is evidenced by documentation obtained from Land Registry, in the form of a title document, deeds, and the title plan.

Your solicitor will do the majority of the work, but as the owner and seller of the house you will be required to complete what is known as the Property Information Questionnaire and the Fixtures and Fittings Form.  These forms are relatively easy to complete, however you may be selling a house by auction that you have inherited or is part of a probate matter and so might not know the answers to the questions!

 

This is absolutely okay and in these instances it is acceptable to state that the property is ‘sold as seen’ and include the grant of probate in the legal pack.

What is in a Standard Legal Pack Contents for a Freehold House?

Generally the following will be contained in a legal pack:

  1. Title Document
  2. Title Plan
  3. Property Information Questionnaire
  4. Fixtures and Fittings Form
  5. Local Authority Search
  6. Water & Drainage Search
  7. Environment Search
  8. Energy Performance Certificate (EPC)
  9. Standard Auction Conditions
  10. Special Conditions

The information provided by the Local Authority Search is one of most importance and interest for most buyers as this will contain information on what is happening locally development wise, be it building, transport, or any other public development which may affect the property and its surrounding area.

A drainage and water search is considered to be important because it shows the flood risk to the property, which will prove particularly important for provincial or rural properties.

An absolute must have for a legal pack is the Energy Performance Certificate (EPC). It’s a legal requirement to have an EPC whenever a property is advertised for sale or rent. EPC’s are valid for 10 years, so it may well be that you have a valid EPC for your property already – if you bought or have tried to sell the property within the last 10 years. An easy way to check this is by looking at the EPC Register website at http://www.epcregister.com/

 

All property auctions are governed by a standard set of conditions, known as the general conditions of sale, or the standard auction contract. These conditions will be published in the auction catalogue.  These conditions state:

  • The role of the auctioneer and the conduct therefore of the auction.
  • The terms of the transactions including that completion will be 28 days after auction day
  • The deposit will be 10% of the purchase price.

In addition your solicitor will provide a legal document known as the Special Conditions which:

  • State the lots number, the address of the property and the seller’s solicitors contact details.
  • It is also in these conditions where you can vary the terms of the common conditions. For example of the completion date – this could be changed from 28 days to maybe 40 days.

.Depending on the type of property you are selling at auction, there may be other necessary documents that are required for the legal pack.

For a tenanted property:

  • A copy of the tenancy agreement must be provided with as many as possible associated landlord and tenant documents such as the gas safety certificate, and deposits made etc.

For a leasehold property:

  • You w ill need to include a Management Information Pack – as the seller this is your responsibility to provide this. You will have to apply to the Management Company of the property for this. The owner of the freehold.

The pack will evidence:

  • Financial statements to show if service charges are all up-to-date,
  • Insurance policy documents,
  • Fire safety certificates and other compliance documents to show the property is being properly managed.

The management pack can take a few weeks to arrive, so it’s important to request as soon as possible. Most solicitors will ask the seller to request these directly from the management company themselves. In terms of what should not be included in the legal pack, as the name suggests the pack is for legal documents and nothing else. There is no need to include surveys or marketing materials in the auction legal pack.

How long does it take to prepare an auction legal pack?

For a freehold property, an auction legal pack can be prepared in anything from 1 week to 3 weeks. The local authority search is usually the delaying factor, on average taking up to 3 weeks, but some councils can take longer, so it is worth asking your solicitor how long the local authority for your property is currently taking.

For leasehold properties, the delaying factor is usually the management information pack (obtained from the managing agents or the freeholder) which often takes longer than it should.  As soon a you decide to sell at auctions it is  worth chasing your freeholder (or their managing agent) to make sure they’re dealing with your request and that you get the management information pack in a timely manner.

What if the auction legal pack is not ready in time for the auction?

Most auctioneers will allow a property to be entered in to auction with the bare minimum in the legal pack; that will typically be the office copies (Land Registry documents) and the special conditions of sale.

If there are one or two searches missing from the legal pack then it’s usually okay to let the property go to auction, but if any of the key documents are missing e.g. the title documents or lease then it’s better to withdraw from auction and enter in to a subsequent auction once the legal pack is ready.

How long is the auction legal pack valid for?

When selling at auction its usual to instruct the auctioneer and your solicitor at the same time, typically about one month before the auction date.  It is advisable to ensure that your solicitor will begin compiling the legal pack as soon as they receive your instruction so that it’s ready for prospective buyers no later than one week before auction day.

A legal pack is valid for 6 months from the date the documents are produced. So if for whatever reason you need to withdraw the property from auction and enter into a later auction a month or so later, the auction pack will still be valid.

Enter your details HERE for your no obligation valuation

24 Sep 2020
18:30
Next Auction
18:30
The Village Hotel Dudley, Castlegate Dr, Dudley, DY1 4TB, Castlegate Dr, England, DY1 4TB, GB