If you're wondering 'should I sell my house at an auction?' but aren’t sure of the process, or if you can afford to do so, then this article is perfect for you. We’ve outlined some of the main questions that homeowners have about selling at auctions to give you all of the information you need to make a decision.
Once you’ve chosen which auction you want to sell your house through, your house will be appraised. During this, you will be given the benefits of selling an auction, how much to expect for your house and some suggestions on choosing your reserve price.
You’ll need to go through the terms and conditions of the auction house and sign the legal documents. You also need to get the papers together to sell your property such as the deeds. At this point, the auction house will create a draft description of your house to advertise before the auction.
At this point, you need to appoint a solicitor to handle the legalities of selling your house and to put together a legal pack that will be given to the new owner of the house at the end of the auction so they have the rights to the property.
Your chosen auction house will market your house for around a month before the auction to gain some interest and reel potential bidders in.
5. Reserve Price
It’s worth taking into account the advice you were given about the reserve price when you had your appraisal, as getting it right is important. Setting the price too high might put bidders off, and although going lower could encourage bidders to bid against each other and drive the price up, it could also leave you with a low offer if the bidders don’t take the bait and mean you lose out on some of the value of your house.
6. Auction Day
The day of the auction will see how much your house sells for. It will start at your reserved price and then hopefully increase nicely before a final bid is put in and the house gets sold. Contracts are exchanged straight after the auction, a 10% down payment is made, and there is a legal contract between you and the buyer of a house sale.
It will usually take around a month to finalise the sale after contracts get exchanged during the conveyancing process, but there is no risk of the buyer changing their mind as it is a legally binding contract.
Knowing the positives and negatives of selling at auction along with the process will make the decision of whether 'should I sell my house at an auction?' easier for you as to whether you sell your house at an auction.
If you are looking for a quick sale but are put off by the fees or the risk of no sale, get in touch with us at We Buy Any House today. We can provide you with a free offer on your property along with a timeframe for the sale, keeping you involved every step of the way.
We buy any home in as little as 7 days, or timescales to suit you. Head to our website for more information.