Selling by auction is one of the most open and transparent methods of selling property, as well as being the most reliable indicator of a properties true market value – you can guarantee that you’re getting the best possible price for your property if you sell at auction. If you’ve reached the decision to sell your property by auction, then what comes next? The first step is finding an auctioneer that’s right for you and to get the best possible result for your property. This can often be daunting but there are a few handy tips and tricks to help you make the right decision.
Credentials
This might possibly be the most important factor in choosing the right auctioneer for your property. Look for an auction house which is regulated by RICS (Royal Institution of Chartered Surveyors) and has staff who are professional members. The accreditation means that the firm and staff have undergone a rigorous process of entry and that they work and operate to strict regulations and practice guidelines. This ensures that your money is safe and all staff are properly trained, competent and experts in their field.
Valuation
Most auction houses will perform a free valuation or appraisal of your property before you choose to sell. It’s important to go with an auction house whose valuation you trust. If the auction house is regulated by the RICS you can guarantee that your valuation will be carried out by an expert in their field and will not be providing unqualified, over exaggerated figures just to win your business. If you place your property in an auction you want it to sell, not go unsold because the guide price is wrong.
Marketing
It pays to do your research before picking an auction house. Take a look at other properties the auction house is advertising, and has sold in the past. You need to be sure that your property will be marketed on the correct platforms for it to achieve the highest price possible. Most auction houses will advertise on the usual property portals to make the most of the short, sharp marketing period. The auctioneer’s current percentage sale rate is a good indicator as to how they fare in the auction room.
Fees
A sale by auction is usually more expensive than a sale by the traditional means. There are additional marketing costs to consider and, of course, the cost of putting on the physical auction. It is worth noting that the cheapest fee doesn’t guarantee the best net result. Skill, expertise and knowledge of the auction house staff when marketing your property, and targeting the most suitable audience of buyers all play a more vital role in realising the best price for you. Knowledge of the auction and legal process is fundamental to guide inexperienced buyers through the process meaning they are more comfortable bidding on the day. All these factors will improve the net result more than saving 0.5% in commission.
Some fees involved when selling by auction are:
- Commission – this is paid on completion, only once the property is sold.
- Entry fee – paid in advance and non-refundable, these costs go towards the cost of production.
- Additional marketing costs – we include cost such as the ‘for sale’ board and website advertising within our commission however further advertising is occasionally required in places such as the Estates Gazette although this is rare especially on smaller lots.
- Legal costs – your solicitor will have to prepare a Legal Pack for the property being sold which includes documents such as searches, title documents and leases where applicable. We are now able to offer the option of a ‘no sale, no fee’ Legal Pack, please let us know if you need more information.
The auctioneer
Auctioneering is an art which is learnt over many years on the rostrum. Whilst it cannot be said that a novice auctioneer will not sell well, a skilled auctioneer can squeeze the last final few £1,000’s out of a bidder to truly realise the best possible price. This little extra can easily cover the auctioneers’ fees, solicitors’ fees and a little extra meaning the net result is far greater than expected.
Austin Gray are an established, multi-disciplined firm who have been holding property auctions in Sussex for over 30 years. We have teamed up with the Auction House group to expand our coverage throughout Sussex and offer our clients national coverage when they decide to instruct us. For more information about our property auctions don’t hesitate to phone us on 01273 201980 or email us at auctions@austingray.co.uk