It is occasionally the case that lots are withdrawn prior to online and ‘in the room’ property auctions or even during the bidding process.
But why are properties withdrawn from auction? What does “withdrawn from auction” mean?
In this article, the home sales experts at Property Solvers answer these questions and more.
What Does “Withdrawn From Auction” Mean?
Simply put, if a seller or an auction house withdraws a lot from an auction of any kind, it means that it has been taken off sale and that bidding is cancelled.
If you were interested in purchasing the lot, this will not be possible if it has been withdrawn – unless you and the seller can work out a deal privately.
Why Are Properties Withdrawn from Auction?
There are many potential scenarios that may see a property withdrawn from auction. Here, we’ll explore just a few.
Lack of Interest or Insufficient Bidding
If the auctioneer feels that a lot is very unlikely to sell due to no buyers expressing any real interest, they may decide to withdraw the lot. Alternatively, they may decide to lower the guide price to encourage more bids.
Auction bidders with little to no funds may gamble on the latter in order to grab a bargain. However, there is a risk that the auctioneer or the seller will remove the property from sale altogether.
If a seller is an identity thief, a money launderer or acting illegally in some other capacity, the auction house can also withdraw their lot.
Insurmountable Legal Issues
If a buyer or auction house finds problems with a property’s “legal pack”, such as missing paperwork or an ongoing land registry dispute, the seller may need to withdraw the property.
They should only list it again once they have resolved these disputes, or once they have made proper provisions within the pack.
Change of Mind About Auctioning Property
Sellers are only human. They may be reluctantly auctioning a property because they feel they have no other option. However, if they find a different solution at the last minute, they reserve the right to withdraw it from sale.
Alternatively, a property’s owner may withdraw a lot if they find a means of selling that they consider more suitable.
This can be naturally frustrating for buyers, but it only happens relatively rarely.
If a potential buyer has approached the seller with an offer prior to the start of bidding, the seller may withdraw the lot.
If the seller is happy with the proffered deal, they may come to an agreement then and there. This, of course, renders the whole bidding process unnecessary.
Sold to a Quick Sale Company (Like Property Solvers)
To avoid hassles and waiting periods involved with auctions, some sellers prefer to deal with a We Buy Any Home / Fast Sale company (like Property Solvers). We also charge no auction fees and cover all legal costs.
In many auctions, a auctioneer may withdraw a lot due to concerns about its condition. This is fairly rare in property auctions, as buyers often purchase run-down and condemned properties to develop them.
However, there is always the chance of a dishonest seller being found out when trying to sell an unsuitable property, and being forced to withdraw.
What to Do if You Were Interested in a Withdrawn Lot
It can be frustrating to have a lot withdrawn that you were keen to bid on. However, you may still achieve the outcome you were hoping for.
Firstly, you should try to find out why the seller or auctioneer removed the property from sale. If it has already been sold privately, or if the seller had a change of heart, there isn’t much you can do. You should also steer clear if there were legal issues with the property or its owner.
However, if the lot failed to reach the guide price, or if there was insufficient interest, you may be in luck.
If you can, try to get in touch with the seller via the auctioneer. This way, you can negotiate a separate offer. They may still say no, of course, but there is no harm in trying. More often than not, they want to get the property sold and move on with their lives.
In these cases, you may be able to purchase the property for a good price.
Never attempt to bypass the auctioneer in these circumstances. They are legally entitled to come after you for fees.
Sellers and auctioneers often withdraw properties from sale for various reasons. However, more often than not, the auction goes through without a hitch. It is worth noting that, if you are the highest bidder on a lot, you are legally required to go through with the purchase. As a buyer, you cannot request that the lot is withdrawn.
However, if you feel that a seller is acting dishonestly, or committing fraud, you should report it to the auctioneer. They, in turn, may decide to withdraw the lot.
Property Solvers have various sales methods based on the urgency of the sale. Our 28 and 56-day auctions enable sellers to achieve a secure outcome without compromising on getting a good price.