The role of a property auctioneer has been around for centuries. These individuals are tasked with exhibiting and describing property or “lots” in an auction, then taking bids and eventually announcing each lot as “sold”. They will preside over each auction for its duration – the exact timings of which may vary from event to event.
Over the years, the position of auctioneer has seen slight changes, with telephone and proxy bidding coming into play and more methods of advertising auction property being introduced. Some auction houses now broadcast their events online as well as holding them in person.
However, throughout all of these adjustments, auctioneers have remained a vital part of the process in helping homeowners to buy and sell property quickly and easily.
So, how exactly do property auctioneers make a living? Are they salaried, commission-based… or both? In this article, the real estate specialists at Property Solvers explore this question and reveal how it all works.
The Nature of the Job
The majority of property auctioneers work full time. As well as presiding over the event itself, most auctioneers are also in charge of organising and promoting the auction. They must effectively advertise each lot and to drum up interest to ensure a healthy level of bidding on the day. It is also their job to recommend accurate guide and reserve prices.
Auctioneers will work with surveyors, too, to get a clear idea of a suitable guide price for each property to be auctioned.
In most cases, they will arrange property viewings – either with each individual bidder or as an “open house” arrangement.
As an auctioneer gains more experience, they may be able to get through lots more speedily and encourage greater numbers of bids. This will boost the amount of commission they are likely to earn per event.
If the property doesn’t sell at auction, a good auctioneer will also know how to navigate the situation.
Overall, the role of an auctioneer is often very varied and interesting. A skilled auctioneer can often find themselves well-remunerated as a result of their work.
How Much do Auctioneers Get Paid?
The minimum salary of an auctioneer usually starts at around £20,000 per annum – although the auctioneer salary range can stretch up to £50,000 for senior or managerial positions.
On top of this, there are auctioneer commission rates.
How Much Commission Does an Auctioneer Make?
A seller will usually have to pay an average auctioneer commission percentage of around 2% – 2.5% plus VAT upon the sale of their property.
However, this amount – and the way it is paid – may vary depending on the auction house. In some cases, the buyer must also pay an amount of commission as part of the administration fees charged.
This commission percentage will supplement an auctioneer’s base salary according to the number of properties they successfully sell, and the price they receive for each. To this end, it is in an auctioneer’s best interests to achieve the highest possible bid for each lot.
Auction houses should always display clear and transparent information about all fees, commission rates and expenses in their sales contracts and other legal documentation. In order to effectively budget, and to find out where their money is going, both buyers and sellers should inspect this closely as early as possible.
Costs to auction sellers may include solicitors’ fees, surveyors’ fees, administration and advertising fees as well as auctioneer commission. Buyers will also have to pay solicitors’ fees. Ideally, they should invest in their own survey too. There may also be a buyer’s premium or buyer’s administration fee. Of course, the buyer will also have to foot the bill for the cost of the lot.
Remember: once a buyer has placed the winning bid and the property has been announced “sold”, a legal contract is formed. This means that these parties must have immediate access to funds or finance upon the commencement of the auction.
In order to sell your property quickly and affordably, a property auction may be the ideal option. You can bid easily on Property Solvers’ auction properties online today.
However, you may decide that auction is not for you. If you still wish to sell your home fast, Property Solvers can make you a no-obligation offer up front. This may be worth up to 75% (or more) of the house’s fair market value.
The entire process from the offer up to the exchange of contracts may take as few as seven days. There will be no estate agency or legal fees to pay.
We also offer a highly effective estate agency service. Using this resource, we can find the best buyers for a property in just 28 days. We offer a no sale, no fee guarantee. As we have no tie-in contracts, sellers can leave whenever they wish.
For further details of our services, please contact the friendly team at Property Solvers today.