Thank you for reaching out to us and taking the time to read this guide…
The co-founders at Property Solvers have been involved in the home buying and selling industry since 2003.
Our core focus has always been to provide a fast, efficient and genuine win-win service.
This guide goes into this latter option and, based on our initial conversations, why we feel it’s an excellent way for you to get a fast and efficient sale for a great price.
Remember, our lines are open 24 hours, 7 days a week and we always make ourselves available to help…
24-hour Freephone: 0800 044 3733
Office Telephone: 020 8226 6901 (08:30 to 17:30 Monday to Friday)
Email: [email protected]
*Use our chat facility towards the bottom right of your browser to also get in touch
Across the UK property auctions are a well-established way to get a firm sale within a much shorter timeframe compared to using an estate agency.
It’s a common option that sellers choose when their properties are dated, need renovating, unusual or more challenging to sell on the open market.
Auctions continue to grow in popularity amongst a broader range of homesellers.
Today, 1 in 3 estate agency sales falling through.
With auctions, the chances of this happening are slim to none.
Once the auction bidding is done and the virtual hammer falls, buyers must
This means that there’s very little reason for the buyer to pull out of the sale as they will probably lose money if they do so (not to mention the fact that most are super eager to move forward).
Auctioning a property may seem like a daunting prospect, especially if it’s your first time.
However, the sector has modernised considerably in recent years and has become much more easily accessible (even for the technophobes amongst us!). As a result, the process has become more transparent and easier to navigate.
It’s worth noting that, particularly as the digital age continually evolves, the auction industry is going through a profound transformation.
Below are some of the downsides that we feel continue to mount against traditional auctions:
Property Solvers offer an online auction as part of being a ‘one-stop shop’ for homeowners looking for a quick and secure sale.
Property Solvers run two types of auctions (see below) that provide you flexibility over the speed at which you will exchange and complete on the sale.
This means you can choose the best elements of a traditional ‘in the room’ auction whilst benefits from a state-of-the-art auction platform designed to achieve a quick and efficient sale.
We look at each sale on a case-by-case basis and base our recommendation on what we will get you the best outcome.
Sometimes referred to as the ‘Modern’ Method of Auction (MMA), we stretch out the completion or settlement date. This means that we can attract retail buyers who are willing to pay higher prices than at traditional auctions.
Everything is done online and people can bid from anywhere in the world 24/7.
We’ll conduct a best bids process where the winning buyer will secure a 4-week (28-day) exclusivity period to exchange on the property. A non-refundable deposit is also instantly required.
The buyer will usually arrange mortgage finance during this time but must exchange at the end or risk losing all of the deposit. At the point of exchange, a 10% deposit is paid into the buyer’s conveyancer’s account. There is then a further 4 weeks (28 days) for the sale to complete.
We often describe it as a ‘middle ground’ between a normal estate agency sale and a more traditional auction / quick cash sale. In terms of the price you’ll achieve, you can typically expect to achieve between 90-100% of the value of the property. Property Solvers can typically find you a buyer within 3 weeks from listing.
This is a better option if you’re looking for a quicker sale and wish to attract a more professional type of buyer / investor. It works well if your property needs work or has tenants, for example.
Incorporating the traditional way of selling at auction, once the virtual hammer falls the buyer has effectively exchange contracts and will need to pay a minimum deposit of 10%.
The buyer is then obliged to complete on the sale within 28 days. Failing to do so means that he/she will lose the deposit and face other financial penalties. It’s therefore extremely rare for the sale to fall through. If it does, you will be entitled to claim for both the deposit and extra damages.
We take a 4-step process to valuing your property for auction and will produce what we call a ‘desktop’ valuation.
The team at Property Solvers has many years of experience in valuing properties.
We follow RICS guidance which means that the valuations we provide are aligned with professional home valuer estimations (so-called ‘Redbook’ standards).
Using house valuation tools derived from HM Land Registry data, we’ll primarily look at sold property comparables.
We will check the sizes of these nearby properties we come across (typically within 1/4 of a mile).
Most streets in the UK have different types of properties and it’s not always easy to compare like-for-like.
For example, yours may have a larger garden or had a back or roof extension.
Other times, the differences can be more subtle. We will happy show you our findings and run off one of our detailed house valuation reports.
Our sales executive would have asked you some questions about the current state of the property.
For example, if you have recently refurbished the property and/or significantly improved its appearance, we’re likely to suggest pushing the auction prices upwards as buyers would not need to undertake these works themselves.
We’ll take a closer look at your local property market using tools such as Rightmove+ and our in-house local house market insights tool.
These give us a unique understanding of the ebbs and flows alongside other crucial influences such as average speed of sale of properties in the area and differences between estate agency asking prices and sold values.
This part of the analysis will also examine growth prospects such as local planning policy, new developments, blights, education, health care, amenities transport links / prospects amongst a range of other micro influences.
After we have assessed the various factors outlined on the previous page, we will provide you with a suggested reserve and guide prices. To confirm the difference:
This price will be based on what we feel the property is worth in its current state. This can be either a single figure or price range (i.e. £X to £X). Much will depend on the expected level of bidding interest during the auction, demand, the state of the market and other dynamics. As professional auctioneers, our aim is to push the price above this level.
This is the minimum figure that you would be willing to sell at. The bidding must reach this figure in order for the property to be reserved (and sold). This figure will be agreed before the auction between us and will be kept confidential. If the bidding does not exceed the reserve the property will be left unsold and you have the option to run it through the next auction for free!
Although many clients don’t wish to do so, after presenting our findings and estimates, we would be more than happy to send one of our associated agents to view the property.
This will give us the opportunity to take a closer look and confirm the valuation. Of course, there is no obligation for this and many clients prefer to go ahead without delay.
Either way, we are always available to answer any questions you may have regarding the process every step of the way…
Although you may be aware that legal packs are not compulsory to sell a property auction, we rarely recommend moving forward without one (unless you’re in a particular rush).
For a start, buyers will often be sceptical and think that some of the details are not being revealed.
As a result, they will bid low (or not at all) to avoid taking on risk. We find that transparent auction sales, where all the specifics are presented without any ambiguity, are the ones which get the best outcomes.
For these reasons, we strongly recommend getting one produced, which will typically contain the following:
We delve into all the legal aspects of selling at auction in our Auction Sellers Legal Guide. If you have not already received a copy and/or would like to chat about how to access reasonably-priced legal auction packs, please email us at [email protected].
Due to their inherent uniqueness, auctions are often a common place for commercial / mixed-use properties and land to be sold.
Most active buyers of this type of property regularly check out portals such as our own to see what is available.
There’s also a strong argument to say that commercial property and land sales perform better at auction as there is usually a solid flow of investors who actively compete against each other.
Whilst our valuation process is more nuanced compared to residential properties, as with any auction sale we undertake, we can get your building or plot listed within very short timeframes and guarantee excellent exposure.
Appreciating the extra complications involved in this type of transaction, we typically extend the time for selling commercial property to 56 days.
Where required, we can also apply conditional auction conditions (taking a non-refundable deposit
once the bid is won) and extend the overall sale period without losing the security of sale.
When getting in touch with us, we would ask that you forward any plans, leases, photos/images,
surveys, insurance policies, planning permissions and any other documents that would help
assess the property quickly.
Advertising homes is something we’re passionate about here at Property Solvers and we pride ourselves in stimulating the very best exposure for our clients.
Complementing the above, Property Solvers has invested heavily into our IT infrastructure to make the auction sales process as simple and hassle-free for all involved.
This means we can offer the following benefits to all our clients:
Property Solvers charge very competitive fees for our auction services (regardless of whether you choose the 56 or 28 day options).
As there is a considerable amount of work required pre-auction, we request a relatively small sum of money to prepare your property for sale in an optimum way. This is required to protect ourselves in a scenario where sellers pull out pre-auction.
However, if you’re not in a position to pay this immediately, we are able to defer the payment to the point of completion.
We’ll then charge a small 1.5% fee + VAT (minimum £2,000 + VAT) payable only once the property is sold.
You may have come across auction houses that will charge no fees. Instead, they pass the fees on to buyers.
Whilst this may seem like a good way to save money – it’s often counter-intuitive as buyers would often be reluctant to bid and, when they do, their offers will be lower to factor in the extra costs they will incur;
Related to the above, buyers will incur extra stamp duty liability as any reservation fees are added due to being classed as ‘chargeable consideration’. This is another reason as to create a level playing field and split our fees between the buyer and seller;
Remember, if you’re selling the property held within a company, our fees are 100% tax-deductible.