Selling at Auction - tips and advice

Selling your property at auction can be the most certain route to selling your property in a quick timescale. Mainly because once auction conditions are in place any offers once accepted are effectively binding as contracts are exchanged and the buyer can't back out without incurring heavy penalties.

Selling at auction is not completely without its drawbacks however.  Mainly being the cost and time taken to get your property to the auction.

The auctioneer will charge you upfront for the advertisement in brochures and catalogues, a cost that you will have to cover regardless of whether your property is sold or not. You'll have to meet the cost of a solicitor drawing up the legal documents and instructing property searches as these need to be in place before the auction, unlike in a traditional sale where they would be sorted out once a sale is agreed.

You will also have to pay a commission of around 2.5 per cent of the sales price. Before signing any agreement, find out about all the expenses you will have to cover, even if your house is not sold.

You can arrange to pass some of these costs on to the buyer by having this drawn into the legal documentation, however you'll still need to meet your solicitor's upfront costs which may not be practical for everyone. 

Published on 21 May 2014

Source Dominic Woodward

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