Selling your property by online auction
Why sell property by online auction?
Certainty
How does a property sale by online auction work?
Provided the reserve price is met, both the vendor and the purchaser have the comfort of knowing that they are legally bound to complete the transaction, typically within four weeks of the auction concluding.
Selling by auction, whether online or in-room, ensures visibility. This can be helpful when the vendor is a Trustee, Executor, or Public Body with a duty of care to third party or it is a sale of a public asset, as a sale by public auction assists with demonstrating that market value has been achieved. This can also be helpful when disposing of unique assets which can be more challenging to value.
Transparency
There are a number of ways in which selling a property through auction differs from sale by private treaty. Our timeline below lays out the different steps in bringing a property to the market all the way through to completing the sale.
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Week
Inspection
Preparation
Auction pack
Marketing
Reserve price
Listing
Bidding
Exchange
Completion
The selling agent inspects the property. A guide price and auction date is advised by the agent and agreed with the seller.
Week 1 - week 2
The agent instructs photos and plans to be created, and prepares the marketing materials.
Week 2 - week 4
The agent and the seller instruct a solicitor to prepare the auction pack, which includes contracts for sale, searches, replies to enquiries, etc. At this stage you are front-loading all the legal work, so that contracts can be exchanged on the fall of the hammer. The auction pack will be ready at least two weeks before the auction date.
Week 2 - week 10
The property is marketed in the same way as any other open market sale. The selling agent will advise on what is appropriate but this may include particulars, listings on the Carter Jonas website and portals, sale boards, print advertising.
Week 4 - week 11
The reserve price is set late on in the marketing process, but best practice is for it to be within 10% of the guide price.
Week 9 - week 10
The property is listed and is available to view on the auction platform as a 'Pre-auction lot'.
Week 7 - week 11
Week 10 - week 11
Bidding opens and is typically open for a week, but much of the activity will take place in the final day that bidding is open.
If reserve price is met, contracts are exchanged on the day of the auction.
Week 10 - week 11
The completion date will be defined in the contract, in a section called 'Special auction conditions for sale', but is typically 28 days after the auction.
Week 11 - week 15
How much does it cost to sell a property by online auction?
The cost of selling a property by online auction will vary depending on the characteristics of the property and its value.
The fee payable to the agent will be a percentage of the eventual sale price, and the buyer will pay an administration fee.
Considering selling your property by online auction?
If you’d like to find out more about the sale process, or are interested in selling your property, contact Jack Mitchell, or your local Carter Jonas office.
EMAIL ME
Jack Mitchell
Partner
07920 418287
Case studies
Location: Ely
A block of productive arable land with road frontage. In all extending to 11.36 acres (4.60 hectares).
Guide price £128,000
Sale price £250,000
Location: Okehampton
A modern steel framed agricultural building with a concrete floor. In all extending to about 0.26 of an acre.
Guide price £40,000
Sale price £90,500
Location: Bedford
A single block of Grade 3 amenity/grazing land with former farm buildings. Extending to about 3.80 acres (1.54 hectares).
Guide price £200,000
Sale price £304,000
Location: West Coker
A detached agricultural building with permission for conversion to a detached three-bedroom dwelling. In all extending to 0.58 acre.
Guide price £200,000
Sale price £202,000
Find out more
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Week
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B
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Tap a stage below to find out more
Inspection
A
Preparation
B
Auction Pack
C
Marketing
D
Reserve Price
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Listing
E
Bidding
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Exchange
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Completion
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Week 2 - week 4
The agent instructs photos and plans to be created, and prepares the marketing materials.
Week 2 - week 10
Week 4 - week 11
Week 7 - week 11
The property is listed and is available to view on the auction platform as a 'Pre-auction lot'.
Week 9 - week 10
Week 10 - week 11
Week 10 - week 11
Week 11 - week 15