Wondering if selling your house at auction is a good idea? Property auctions used to be a place where you could find a great deal on a fixer-upper property as an investor or an avid DIY-er.
But property auctions are quickly becoming places where you can find all kinds of homes – not just ones that are in a poor state of repair.
If you’re wondering whether selling your Bristol house at auction is a good idea and how the process works, here’s everything you need to know about how to sell your home at an auction.
1. Find an Auction House
The first step to selling your home at auction is to find a reputable auction house. When searching the web, you’ll likely come across two different types of auction houses – online and in-person. They both provide the same service; one is just conducted virtually while the other is face-to-face.
When looking for an auction house, always check (and compare) things like company reviews, marketing strategies and fees associated with the sale.
2. Give Your Details
Once you’ve chosen your auction house, they’ll ask you several questions about the property to understand the arrangement and what you need from the sale.
Be prepared to answer things like:
- Whether the property is already on the market
- If there’s a mortgage
- What the ownership status is
- The condition of the property
- Any legal complications you may be aware of
- The estimated value
- How quickly you need the sale to go through
3. Get Your Estimate
When the auction house has the information they need, they’ll provide you with an estimate of how much your property could sell for. They’ll usually base this price on their experience of similar properties selling at auctions, so it may be different to any estate agent valuations you have.
Be wary if the estimate is significantly over the price of your recent valuations. Non-reputable auction houses could overestimate the value to convince you to sell with them, so it’s a good idea to get more than one quote.
4. Sign the Contracts
If you’re happy with the auction house and the service they provide, it’s time to get serious. You’ll be asked to sign the paperwork agreeing to the terms of the sale, including things like what the guide and reserve price will be.
5. Instruct Your Solicitor
With an auction, you’ll need to instruct your solicitor before you put the property on the market. This is because the turnaround time for a sale at auction is usually very quick, so potential buyers need to review the legal pack before they bid.
6. Auction Takes Place
Sometimes, you may be contacted before the auction to negotiate a sale. But, most of the time, the auction will take place and your home will (hopefully) be sold in the process.
As soon as the gavel hits, the contracts are binding and the buyer is charged the deposit. Depending on the length of time your auction house gives buyers, the property could be taken off your hands in less than a month.
Selling Up?
If you’re not sure whether selling your home at auction is a good idea, we’d love to chat! Northwood Bristol are your local property experts in the Bristol area and we can help talk through your selling options.
Give our friendly team a call today on 0117 9635777 or email us at bristol@northwooduk.com.
