Over the last few years, property auctions have attracted many more buyers and sellers.

Lots of people are still hesitant towards property auctions and this can be for many reasons. The majority (but not all) of sellers are expecting to sell their property to cash buyers. As it happens many cash buyers favour buying through auctions as it’s a great way to grab a bargain. It’s also speedy and transparent. Many buyers also enjoy the adrenaline rush associated with auctions.

Here are some facts and FAQs to help you understand why auction is become the preferred route for all residential and commercial sales.

Do I have to put a lot of effort in to list?

No, Smart Auction UK takes care of all the listing. We even enlist and estate agent to attend the property and take pictures, floorplans and we then list the property for auction. All of this is free for sellers.

Do you lose money when selling at an auction?

If you set realistic reserve prices and the property meets the right buyer, then you could sell for more than if selling via other methods. However, if your reserve price is too high or if there are not enough buyers in attendance, you could end up selling for less than expected. As we do not charge to sell your property, you as the seller won’t have to pay any auction fees or estate agency fees. According to My Auction on average houses sold 21% above asking prices.

Every day that your house is on the market, it’s costing you money in repairs, staging, and other bills. An auction cuts down on the time your home is on the market so sell your property at an auction to save both time and money.

How much do auctions charge to sell your house?

We charge the buyer a 5% fee of your property purchase. This means that the seller does not have to pay any fees. The only charge you will need to factor in is your solicitor to process the sale. This is usually around £1000.

Why would you sell at auction instead of going through an estate agent?

House auctions are an expeditious solution for buyers who can bid from any location, on the phone and online and have a high chance of selling the property on the day of the auction for sellers.

What happens if the house doesn’t sell at auction?

Even if a house doesn’t sell during a property auction for any reason, the auctioneer may ask potential buyers to make an offer afterward. To learn more about this process, check out our article here. We can also relist your property into another 28 day auction.

Are auction sales final?

If you successfully bid and the hammer falls, you have exchanged contracts and have legally purchased the property. There’s no going back.

What’s a modern method of auction?

The modern method of auction is a process where a buyer bids on the property but must exchange contracts and pay a non-refundable reservation fee immediately. The buyer then has 28-56 days to complete the purchase and legally own the property. This allows buyers more time to organize finance if required. Buyers can place bids remotely from anywhere in the world and it also means that you don’t have to rely on chains. The fall through rate at our auctions is less than 1%, where as estate agents can have a fall through rate of over 36%.

What’s a traditional method of auction?

The traditional method of auction is a process whereby the highest bidder at an auction will purchase the property, provided they exchange contracts with the seller on or before an agreed completion date. This method of sale differs from our modern auctions, where buyers are expected to exchange contracts and complete them on the same day as bidding happens.

What is a buyer premium?

A buyer’s premium is the fee that the successful bidder is required to pay on top of their bid. The amount varies from auction house to auction house and can range from 5-7.5%+VAT of the purchase price.

So, now you know why auction is the best option to sell in todays virtual market. Ready to sell? Contact us by clicking the button below and we will get in contact with you to get the ball rolling.