Selling property at auction FAQ’s

Frequently asked questions about selling at auction

Home: Auction Link » Selling at Auction FAQ’s

We’ve answered some of your frequently asked questions about selling property at auction.

Auction can be a quick and reliable way to sell a property. And there are reasons why highly profit driven companies (e.g. banks and mortgage companies) sell their properties through auction. But auction is not suited to all property types or personal circumstances.
by Mark Grantham on 27th September 2016

Thinking of selling?

Try our free auction sale price calculator
Auction Estimate

Q. What are the benefits of selling at auction?

A. The main benefits of selling at auction are speed, reliability and transparency. The total lead time (from booking into auction to receiving completion funds) is around 8 weeks. Auction is reliable because on the day of the auction contracts are exchanged with a date for completion agreed. Auction is a transparent process, opening a property up to the whole market; the seller provides information to many buyers and it’s up to the buyers to decide how much to bid for the property. This often results in a property being sold for a lot more than any other method of sale. There is no one to manipulate the sale as there would be with a sale through an estate agent.

Q. What are the disadvantages of selling at auction?

A. The concern most people have when selling their property at auction is the worry that only one person will turn up on auction day and the property will end up being sold at the reserve price. That’s why some view auction as a “bit of a gamble”. But like most risks, there are ways to manage and reduce the chances of loss.  Also, auction isn’t suitable for every type of property, there are some property types where using an estate agent will achieve a better sale price than auction e.g. luxury properties.

Need more help? Call us on 020 7183 2623 or send us an enquiry online.

Q. How much does it cost to sell at auction?

A. Auction fees are negotiable and around the same as you would expect to pay if you were selling a property through an estate agent. Commission is typically in the region of 2% and that’s only paid of the sale is successful. Some auctioneers also charge an “entry fee” of about £300 and will usually be happy to take payment after the sale, only if the property sells. For more information about auction costs see the page auction fees for selling property.

Thinking of selling?

Try our free auction sale price calculator
Auction Estimate

Q. How long does it take to sell at auction?

A. The total lead time is around 8 weeks. If you booked your property into auction today you could expect to exchange contracts in 4 weeks and complete the sale 4 weeks later. We’ve provided more information about the auction process and timescales.

Q. What is the auction reserve price?

A. The reserve price is the minimum amount a seller will accept for their property. If a property sells for the reserve price or more, the seller is obligated to sell. You can find more information about the reserve price and how it’s calculated.

Q. What is an auction legal pack?

A. The auction legal pack contains all the important documents for prospective buyers to view before the auction. The documents include the title document, deeds, searches, contract of sale etc. The auction legal pack is compiled by the sellers solicitor.

Find out more about auction reserve prices and why they’re so important!

Next steps…

Why not request a free pre-auction appraisal for your property? It only takes a few seconds. Or feel free to call us on 020 7183 2623 if you have any questions.

ℹ Top tip

When selling a property at auction it’s quite common for sellers to receive offers before auction day. Although it can be tempting to secure a sale by accepting an offer, if there’s a good level of interest in the property then why not let bidders fight it out against other buyers on auction day!

If you have a question that’s not answered here, please feel free to call us on 020 7183 2623 or send us an enquiry online.

🔍 Also see

💬 Auction talk

The word “auction” comes from the Latin word meaning “to increase” and is a method of sale designed to have a buyer pay as much as possible, without any ceiling price.

⚠ Don’t forget

Be sure to check that the reserve price you agree on is enough to cover all of your costs, including auction and legal fees.