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Selling a property at auction – five important points to consider
Here are 5 important points:
1. Some types of property are better suited than others
2. Costs for selling are: entry fee, commission and legal fees
Commission charged by the auctioneer is typically in the region of 2%+VAT of the final sale price, but it’s not unusual to pass some of the cost to the buyer. Some auctioneers also charge an entry fee of anything from £250 upwards. All-in-all the costs work out to be around the same as a seller would expect to pay a high street estate agent. Read more about auction sale costs.
3. The reserve price is the minimum allowable sale price
Reserve prices are typically set at around 15% below market value. As buyers compete against each other on auction day the price is bid up to a higher level. But if bidding doesn’t reach the reserve price the property will fail to sell. Read more about the auction reserve price.
4. Timescale of 6 to 8 weeks from start to finish
The closing date for entering a property in to auction is 3 to 4 weeks before auction day. During that time the auctioneer carries out marketing activity to generate interest in the property. When the property sells on auction day contracts are legally exchanged and completion takes place 3 to 4 weeks later. Read more about the auction sale process and timings.