FAQs
Why would I choose to sell via auction?
Legal and Binding. Once the hammer has fallen, you have exchanged contracts with your buyer and they are legally committed to the purchase. On average, one third of sales through estate agents fall through after they have been agreed, so selling by auction is a far more secure way to sell.
Will I get less for my property by selling through auction?
No, it doesn’t! If your property is right for auction, you should expect to sell it at the same or higher price than you would achieve through a broker. Not all properties suit auction however, and this is why some people think that they may get less money for their property. Always take our auction teams advice as to what would be your best method of sale for your property.
What is the difference between selling through an auction and real estate broker?
The main difference between auction and selling via a real estate broker is that auction has a fixed timescale for exchange and completion. Auction will usually see exchange occur on the fall of the hammer on the auction date, and completion/key handover typically occurring 28 days later. A broker may see a sale agreed quicker, however there is no fixed timescale for exchange or completion, and current reports state that from sale agreed to completion can take on six months on average.
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Other differences include the way auction and a broker approach valuing a property. A broker will usually suggest a higher price and seek offers from buyers at or below the asking price. They may, after an initial period, advise the seller to lower the asking price, step by step, until buyer interest is generated. By comparison, an auctioneer will guide a property at a more realistic price which generates interests from multiple buyers; by doing so and using the bid up process in an auction environment, the final selling pricefor suitable auction lots will be similar to or exceed those achieved via brokers.
Often the decision to sell by auction is determined by factors associated with the property or the seller’s circumstances. Auction provides speed and certainty; an auction property will usually be sold with an immediate exchange of contracts within 3-6 weeks of it being entered, with completion normally taking place 4 weeks later.
Should I try to sell through an agent before going to auction?
No, you do not need to do this, this will usually work against you and could taint the property too. Properties that are entered into auction without any prior marketing by estate agents will normally achieve a better sale price; this is because they are fresh to the market, will not have been damaged by any potential over pricing, or sales that have failed to proceed. If your property suits sale by auction, then make auction your first choice.