Our Guide to Selling Your Property at Auction

Home | Our Guide to Selling Your Property at Auction

You may have decided that selling by auction is right for you, but why choose Luxury Hub?

There are many reasons, including:

  • We do not charge you a sales fee, we have negotiated with our buyers so they pay the sales fee
  • We ensure the auctioneers do not charge you a fee for selling the property
  • We negotiate with our partner auctioneers to get you the best deal
  • We set a reserve price for your property which is the minimum value you the seller will accept. Therefore the auctioneer cannot sell the property for any less than this figure. The reserve price is confidential and agreed upon between the seller and auctioneer. We sent this price according to your expectation
  •   We understand auctions and which auctioneers are getting the best prices
  • We are experts in understanding the best prices in our local area of the North West of England.
  • Our friendly and professional team are here to answer your questions
  • We have a huge network of buyers to who we market your property to, we direct all our registered buyers to the online auction partner
  • We understand this may be your first auction ale or even your first ever house sale so will help you through the process by explaining everything in a simple to understand way.
  • We have a vast database of serious buyers who are all looking for properties. 
  • We offer choices There are several selling options available to auction sellers and we are one of only a handful of property auctioneers to offer them all. Our friendly experts will help you decide which type of auction and selling method is best for you and your property.
  • Many of them buy from us frequently and are reputable buyers looking for properties.

We Understand How To Market Your property

You’ll find we understand the property and how to market your property in the best way to buyers to maximise the value, for example as a refurbishment project, a project with planning to convert part of the property into apartments, or convert it to an HMO, or a serviced accommodation and much more. 

People sell by auction for a variety of reasons. Can you answer yes to any of the following questions?

If so, then an auction sale may be just what you need:

  • Are you in a hurry but do you want a better price than you are currently being offered?
  • Does your house need refurbishment work completed on it to get the best price?
  • Perhaps you’ve found the house of your dreams and don’t want to risk losing it to another buyer.
  • You may be relocating or completing a divorce settlement. You may have put your house on the market but now your circumstances have changed. Whatever your need for speed, we can help you sell in just a few weeks – and you get to choose the timescale.
  • Are you worried about being messed about by a seller who will take longer than anticipated
  • Selling a property on the open market (through an estate agent) can be lengthy and stressful – and nothing is certain until you’ve handed over the keys. You don’t have any of this uncertainty with an auction sale. 

People sell by auction for a variety of reasons. Can you answer yes to any of the following questions? If so, then an auction sale may be just what you need:

Do you want your property sale to be Commission Free?

We do not charge you a sales fee, we have negotiated with our buyers so they pay the sales fee. We ensure the auctioneers do not charge you a fee for selling the property

Do you want the sales time to be fast without reducing your sale price?

The winning bidder will have provided proof of funding & payment details in advance, committing them to the purchase and virtually ruling out the risk of the sale falling through.

Are you selling without a chain?

If there is no upward chain and you can move immediately, why risk a delay? Auction sales are chain-free as our buyers must have their finance in place before bidding. Keep things simple with just you and the buyer – and nobody else to slow things down.

Do you have an unusual property?

Is your house unique? Is it a character property or particularly desirable? You can take advantage of its unique qualities by letting the bidders compete over it. If two or more bidders take a shine to your property, they can drive up the price – maybe even to more than you’d have been able to ask on the open market.

Have you inherited a property?

When you have suffered a loss, dealing with a property sale is the last thing you need – especially if you don’t live close by. Throw a family disagreement into the mix and this will add to the stress. Selling by auction removes any hassle and stops any price disputes as the property will sell for what it’s truly worth.

We-Understand-How-To-Market-Your-property

Does your property need work?

Preparing a property for sale can be time-consuming, especially if it needs work. And you can guarantee potential buyers will haggle to compensate – even though your estate agent will take these costs into account in the valuation. You can skip the hassle and the haggling by selling in an auction. You won’t need to do any refurbishment because Luxury Hub is a project management refurbishment company and we offer our buyers designs for your property after it has been refurbished, to get you a higher price. Many of our buyers are looking for unfinished projects – because they want to design the house themselves. Our project management for our buyers ensures the price for your house offered is higher.

Which properties are suitable for auction?

You’ll find houses, derelict houses, houses that need refurbishments,, shops and warehouses, blocks of flats, city apartments, plots of land and much more.

Is your property just not selling?

If your property has been for sale for a while, with little interest or no offers, you may be thinking about switching agents, dropping the price or simply giving up. Before you do this, why not consider an auction sale? You can even do this through your existing estate agent.

Did your property sale fall through?

If so, you will feel like the rug has been pulled from under you – but we can help. Get in touch straight away and we’ll add your property to our site within hours. And you won’t have to suer the same disappointment again as the risk of a sale falling through is reduced to virtually zero.

Want to find out more? 

Your first step to a successful auction sale is to get in touch with our team. We’ll chat with you about your property and your circumstances, and help you decide if the auction is right for you, or if we can sell your property to one of our investment buyers after our property assessment.

We will carry out a free, no-obligation auction appraisal of your property. Using our tried and tested desktop valuation method, we’ll research your property, analyse its location, check sold prices for similar homes nearby and dig deeper into your local market using information only available to professionals. This, along with our experience and expertise, will help us arrive at a value. 

We also offer a free property assessment if you sign up for an auction. Our 5-step property assessment analysis report is set to get you the highest return for you your property. We use your property assessment report to offer buyers the best return on the property so you can make an informed decision about the highest price to sell the property at. The property assessment includes, including rental forecasts and other information to you so you can make wiser decisions on the best way to market the property for sale to attract the best price. 

We can also visit your property for an in-person valuation if you prefer. Pricing your property

With your help, we will decide on two different prices for your property – the reserve price and the guide price:

The reserve price

This is the minimum you are willing to accept for your property. It protects you from having to sell for less than you are happy with. If the reserve isn’t met, the property doesn’t sell but we will continue to market the property after the auction.

The guide price

This is the price we advertise and is just what it says it is; a guide. It gives bidders a realistic idea of how much they are willing to sell for because the guide price must always be within 10% of the reserve price; higher or lower.

Don’t be surprised if we value your property lower than an estate agent. The price in both types of sales is just a starting point. On the open market, potential buyers will usually try to negotiate the price down, while at Luxury Hub, we work with the auctioneer and our buyers with the aim to drive the price up.

Which-properties-are-suitable-for-auction

How to get started

Your choice of the auction will most likely be based on how quickly you need to sell and we will happily discuss these options with you.

Our auction partners run two main types of auction:

Auction Events

Our Auction Events have an auctioneer at the rostrum and are held in our head oce auction studio or an external venue. They are live-streamed on our website so you can watch the auctioneer in real-time, just as if you were in the room. Bids can be carried out online, by phone or by proxy.

Timed Auctions

You can also sell in a Timed Auction on our website. These feature a single lot and can be started at any time to suit you. Timed Auctions generally run for three weeks but can be shorter if you wish.

Bids can be placed over the internet 24/7.

Whether you decide to sell in an Auction Event or a Timed Auction, you can choose between a conditional and an unconditional auction sale:

An unconditional auction: When the auction ends, the winning bidder is legally bound to complete the purchase, usually within 20 working days. This means they must have their finance in place before bidding.

A conditional auction: The buyer pays a reservation fee and has an exclusivity period of 40 business days, in which you are bound to sell the property exclusively to the buyer. This time must be used to proceed towards the exchange of contracts and completion. This takes slightly longer but gives the buyer more flexibility, which can open up the auction to more buyers, possibly leading to a higher selling price.

Don’t worry too much about this right now – we will be happy to help you decide

which one is best for your property and circumstances.

The reserve price

Setting a reserve protects you from selling your property for less than you are willing to accept. This is the lowest price you are willing to accept.

Bidders are committed to buying. We’ve all heard of property sales falling through because the buyer couldn’t get a mortgage. This isn’t going to happen with your auction sale. Buyers don’t have to have the cash available – this is a common myth. 

In an unconditional auction, they must have their finances in place before they bid.

In a conditional auction, they have a little longer to get their finances in place.

In both types of auction, there’s virtually no risk of the sale falling through because there are

financial consequences for the buyer. In unconditional sales, the deposit is non-refundable.

If the sale should fall through, you will receive the deposit. In conditional sales, the reservation fee is non-refundable.

Luxury Hub work with the buyers directly and the auction partner

We advertise your property on our website to our registered buyers and investors, on major property portals such as Rightmove and in our auction partners catalogue and website to drive as many buyers as possible to the sale auction. We may also advertise it in the local press and share it on social media.

In addition, your property will be sent to the auctioneer’s database of national and international buyers who are experienced in buying auction properties.

Luxury-Hub-work-with-the-buyers-directly-and-the-auction-partner

We will manage viewings

If a potential buyer is able to view the property in person, we are happy to organise this, meeting them and showing them round at a time to suit you.

We will handle any offers

If you wish, you can accept offers before the auction begins. Again, we will handle this for you although we will not make any decisions without your agreement.

Once you have instructed your solicitor, you don’t need to do anything else. While you may wish to make your property look its best, there is no need to carry out any repairs, decorating or gardening as our buyers will have our ideas for how to refurbish the property and will look beyond the surface to see your property’s potential, even if it requires work.

Let us take care of the rest

The big day has arrived and its time has come to sell your property. What happens next depends on which type of auction you have chosen.

What happens on auction day

Auctions are fast! So if you sell in an unconditional auction, in most cases you will be handing over the keys in just 20 working days. In a conditional auction, this is extended to 40 working days.

Either way, it’s much faster than selling on the open market.

As we have already mentioned, there are two types of auction:

Unconditional auctions: Contracts are exchanged immediately when the auction ends. The winning bidder is legally obliged to pay a deposit and any fees on the same day.

Conditional auctions: This is different in that contracts aren’t exchanged immediately. But, to deter the buyer from pulling out, they must pay us a non-refundable fee which is a percentage of the final price. This is not a deposit but reserves the property for 40 business days to give them time to arrange a mortgage if necessary. If they fail to exchange and complete the sale, they lose their fee.

Letting with Luxury Hub

At Luxury Hub, we can help you find the perfect tenant, manage your property and achieve the highest rentals, with the best service, reasonable prices, and expert local knowledge. We’re up to date on all the latest legislation, too. See our other articles and downloads on our website.

If you have questions about managing a tenant or property, or need to find your next buy to let property, get in touch today. If we can’t help, let us point you in the right direction.