Selling Your Property at Auction

In recent years, increased mobility and growing rates of home ownership have
meant that ever-larger numbers of people nowadays inherit properties from
relatives who lived many miles away. Similarly, many buy-to-let properties
have been purchased in areas with a large student population, miles away
from where their owners live. In such cases, when the time comes to sell the
property, it is often difficult for the usual process of showing it to
prospective purchasers to be carried out by the owner.

In such circumstances, it is quite common for a property to be sold at
auction. If you are considering selling a property by this method, here are
some steps you can take to help make sure your sale goes as smoothly as
possible.

Well before the auction is planned, make sure you put together the necessary
documentation, such as the Home Information Pack.

Make a list of the information a prospective buyer will find useful, such as
the age of the central heating system, wiring etc. and include any guarantees.

Set your reserve price, which is the lowest price you will accept for the
property. If the reserve is not met at auction, the property will not be
sold. The reserve price should therefore be reasonable as if the property
does not sell, there will still be costs to meet for the marketing of the
property and the related legal work.

You should also decide when you want the completion date to be. The contract
to buy and sell is created when the auctioneer's hammer falls and the
deposit is payable immediately, with the completion normally a few weeks
later.

Work out your plan B. In the present market, property is becoming more
difficult to sell, so do not assume that the property will inevitably sell
at auction. It may not. Make sure, therefore, that you are prepared for the
possibility that after the auction, the property will still be yours. Vacant
properties do qualify for rate relief, but other costs (such as insurance)
may rise.

We can assist you with all legal matters relating to buying and selling
property.