Can I sell at Auction?
Selling at Auction is suitable for all sorts of properties such as Residential, Commercial, Land, Development Sites. Auction is suitable for any residential property where the seller is committed to selling their property quickly. This may also include; Tenanted or Investment Properties, Poor Condition or Structural Issue Properties, Short Lease Properties, Commercial Buildings such as pubs and care homes, Unique Properties and Garages.
How long does it take to sell at Auction?
Each property is marketed for a minimum of 2 weeks, unless arranged differently with the auctioneer. If your property sells in the Auction, Option 1 is legally committed to complete within 28 days, and Option 2 it is usually 28 days to exchange and then a further 14 days to complete.
What is the difference between Option 1 and Option 2?
- Traditional Auction
- Immediate exchange on fall of the gavel the buyer pays a 10% deposit (minimum of £3000) which comes off the purchase price
- Buyer pays an auction administration fee
- Buyer legally committed to purchase
- Seller legally committed to selling
- 28 days to complete *unless changed within the Special Conditions
- Designed for the private residential house purchase
- Buyer places a £3000 non refundable deposit which is taken as part payment of the house price (not an additional fee)
- Buyer pays an auction administration fee
- 28 days to exchange contracts (time for buyers to obtain a mortgage) then a further 14 days to complete
Who is Auction not suitable for?
Although Auction is suitable for various types of properties, the seller must also be committed to selling at Auction. Auction may not be suitable for those that; aren’t committed to moving quickly, with completion in either 28 or 56 days, Auction would not be suited to those that aren’t ready to move straight away. To sell at Auction you should also be fully committed to moving. When you enter Auction with Option 1, if someone places a winning bid then exchange happens immediately and you are legally committed to moving.
What is the difference between selling on the open market and at auction?
When you book a valuation with Andrew Craig, our Marketing Consultant will tell you when they visit your property whether they think you would be best suited to the open market or auction, and they would then put you in touch with the auctioneer at APA, Richard Francis.
How much does it cost to sell at Auction?
To sell at Auction you will pay the Auctioneer commission for the sale, this is No Sale No Fee so if the property doesn’t sell then you do not pay. On top of the commission you must also pay a solicitor to prepare your legal pack prior to the auction, and then a conveyancing fee when the property sells. Selling at Auction is usually a higher fee than selling on the open market, however this is due to the added costs of running the auction which the clients benefit from, such as the Auction system etc.
How quickly will I have to move out?
Depending on whether you sell with Option 1 or Option 2, completion day may be 28-56 days and so moving day would also be in this time frame. You may choose the option you want to enter the property on depending on how quickly you are able to move.
Can I accept bids before the Auction has started?
Yes you may accept bids before the auction has started or before it has ended, if this is something that you want to do. You should let the auctioneer know if you will be willing to accept bids prior to the auction when entering your property into the Auction.
What is the difference between guide price and reserve price?
A reserve price is the seller’s minimum price that they will be willing to accept at Auction, you will decide upon this along with the Auctioneer however you will have the last say on this, and any bids below this will not be accepted. The reserve price remains confidential between the seller and the auctioneer.
The Guide price is the price that the property is advertised and is usually the starting bid. The Auctioneer usually sets the guide price with the idea of encouraging the starting bids, and is based on a variety of factors including the condition of the property and how popular they think it will be at Auction.
Can I set the price that I am willing to sell at?
The reserve price will be set by the seller and the auctioneer, however the seller will have final say on this and the property cannot be sold for less.
Can I sell with a tenant in place?
Yes it is possible to sell the property with a tenant in situ,and this will be classed as selling a tenanted investment. It is also possible to serve notice to the tenant prior to selling and selling as a vacant possession, we recommend speaking to the Auctioneer who will help you to decide which is the best route to follow.
Who are APA?
APA, or the Agents Property Auction, are an Auction House in the North East of England, set up by Auctioneer Richard Francis MNAVA in 2010. Working alongside his wife Alison they both have over 25 years’ experience in successful property auctions, they have seen first-hand the benefits of auction to thousands of buyers and sellers. APA works alongside a number of Partner Estate Agents, to provide extensive coverage across the North East and North West of England through over 50 Estate Agents branches, giving seller’s maximum exposure and buyers a superb choice of properties.
Will my property sell for more than the guide price?
Although Auction properties often sell for more than their guide price, this cannot be guaranteed. However if the bidding doesn’t reach the reserve price then a sale will not be agreed. Before the Auction, APA and the Estate Agent will do everything they can to generate enough interest for your property to ensure that you have bids on the day.
What is an Auction legal pack?
A Legal Pack is something that a seller must instruct a solicitor to prepare for them prior to the Auction, and consists of legal documentation related to the sale. This includes; Official Land Registry Title Deeds, Land Registry and Local Searches, Special Conditions of Sale, Property Information Form, Fixtures and Fittings Form, Leases, Tenancy Agreements and Planning Permission Documentation if applicable. This will be made available to potential purchasers to view before the Auction.
What happens if my property doesn’t sell at Auction?
If your property does not meet its reserve price at the auction, there are a few options available to you. If there were bids near to your reserve price, then you will have the option to accept these offers instead. Alternatively, you can re enter the Auction the following Month. You may also withdraw from the Auction if you decide so.
Can my sale fall through at Auction?
Whilst sales are much less likely to fall through at Auction, it is still possible. In 2020 APA experienced a fall through rate at Auction of just 3%, in comparison to a fall through rate for the whole of the UK at 43%.
How does the online auction work?
Due to Covid-19, our Auctions are currently being held online, on the APA website. The Auction is still held once a month, and for 24 hours on a set date of the month bidders are invited to bid for the properties of their choice. Bidding is done via widgets on the property pages and buyers must be pre registered with APA to bid. The Auction is powered by EIG Auctions, providing all the benefits of a traditional in room auction, including: speed and certainty of sale, transparency and zero risk of gazumping or double-selling, but in a more innovative way, from the comfort of your own home or office via the Internet.