Modern Auction House Sales – Probably Not What You Imagine

When many of us think of house auctions, we probably conjure up an image that's been created by watching too much TV. And, it's an image that is almost certainly outdated.

This idea of dilapidated properties selling for below market rates from a packed auction room filled with builders and property developers is NOT the modern way to auction a house, or any property for that matter, and this blog is going to explain why.

OLD VIEW: House auctions are only for problem properties

This is probably the most common misconception about auction sales. Yes, properties that need remedial work, lease renewals and renovation are common lots in an auction sales, but there are also a wide variety of other property types, including houses and flats which need to be sold fast or have tenants in situ.

At Higgins Drysdale, while we are a firm of auctioneers, we always give best advice for each property and this means that if an auction isn't right for your property, we won't put it into auction. However, our online auction sales process is often a really good way of getting the best price, especially if speed and certainty is an important factor for you.

Get in contact to start a conversation about your property and find out whether an online house auction is right for you.

OLD VIEW: Only property developers go to auctions so my house won't reach a wide market

Old-style house auctions were generally held once a month or once a quarter in an auction room close to the properties on sale and, yes, they were often mainly frequented by property developers looking for new projects. Online house auctions mean that we can reach a large audience with our marketing (see below) and all types of buyer can bid on properties from wherever they are in the world.

On the day of the auction, potential buyers just have to turn on their device, log in to their account (they have to pre-register to bid) and then they can follow the auction over the two-hour bidding window. This means that just about anyone with an internet connection who has provided ID and a security deposit can bid on a property and this has opened up the auction marketplace to a much wider audience of buyers. 

OLD VIEW: The marketing of auction properties is not widespread

Thanks to the internet and the plethora of online property portals available, we can market your property as widely as any estate agent. Plus, our knowledge of the investment property market means we have a database of active buyers who we can approach with properties we believe meet their needs.

Many of our buyers specialise in certain types of property, so our knowledge and bespoke service means your property is marketed to those who are most likely to buy. This makes our marketing truly focused and provides more certainty that committed bidders will turn up on the auction date.

OLD VIEW: Auctions are few and far between and I'll have to wait a long time before my property comes to market

We hold online property auctions every Friday. When we carry out your property sales appraisal we will discuss your needs and then we will schedule the sale of your property for the most appropriate date that allows sufficient marketing but also fits in with your needs.

OLD VIEW: Auction houses sell at below market-rates

There is a trusted process that occurs at property auctions which often achieves a better price for sellers than if the house was sold by private tender with an estate agent. The guide price for your property may be below what you believe the market value to be, but in many cases, the selling price will be above the guide price. And you will always have the safety net of a reserve price, so you won't lose out.

The 'guide price' is just that, a guide that will entice buyers into the auction to bid competitively on their chosen lot.

OLD VIEW: 'Cash buyers only' reduces the customer base

The misconception that buyers must have the full amount of cash ready if they are successful at a house auction is still one that prevails, but it's wrong.

The legal pack drawn up following the property sale appraisal will stipulate the timeframe that the buyer has to complete the purchase and this can be enough time for funds to be raised, such as a mortgage or bridging loan.

At Higgins Drysdale, before a potential buyer can bid on a property, we will have secured a security deposit when they register online to view the full details of a property and bid at the auction. When the auction ends, the successful bidder must pay the balance of the 10% deposit on the property and all auction fees as specified in the property legal pack. They must also provide us with details of their property conveyancer within two days. These measures ensure bidders are committed to the purchase.

OLD VIEW: It's expensive to auction a house

The cost of auctioning a house is probably not as much as you think and, in many cases, works out roughly the same as using a high street estate agent (or less).

House auction fees include the auctioneer's commission, a catalogue fee (also known as entry fee) and a fee for the legal pack.  Plus, the seller has control over the terms of the sale and can pass all or a portion of the costs and fees to the buyer. It will all be detailed clearly in the legal pack.     

Talk to Higgins Drysdale today

To discuss any aspect of selling a house at auction (or any property for that matter) just get in contact and we will be happy to answer your questions. 

You can book a property sale appraisal using our booking form which lets you choose a date and time for the appraisal appointment (which should last around 20 minutes).

Or just pick up the phone and call 01243 278139. We are here to help.