CertainMove

𝗦𝗶𝘅 𝗥𝗲𝗮𝘀𝗼𝗻𝘀 𝗔𝘂𝗰𝘁𝗶𝗼𝗻 𝗿𝗼𝗼𝗺𝘀 𝗮𝗿𝗲𝗻’𝘁 𝗳𝗼𝗿 𝘆𝗼𝘂
(and 2 why they might be)

Homes under the hammer, get it sold, nice and quick cash in your hand....maybe. They idea you get from TV of the high adrenaline, quick turn around nature of auction rooms is not strictly true. Here are a few of the realities for you to consider before you sign that high commission contract.

𝗙𝗶𝗻𝗮𝗹 𝘀𝗮𝗹𝗲 𝗽𝗿𝗶𝗰𝗲

Whilst you do get to set a reserve, this is the very minimum you are willing to accept and if you’re priority is a quick sale, this will be way below market value. So even if your home sells first time, it may be for a lot less than you had first hoped. At least it’s a cheap way to sell...

𝗧𝗵𝗲 𝗖𝗼𝗺𝗺𝗶𝘀𝘀𝗶𝗼𝗻

It’s a lot. And not, take the family out for Sunday roast because you couldn’t be bothered with the washing up a lot, it can be as much as 10%. On a £150k property sold, under market value, for £100k, that’s still £10k; taking the total hit on your asking price up to £60k. And that’s before...

𝗧𝗵𝗲 𝗠𝗮𝘀𝘀 𝗩𝗶𝗲𝘄𝗶𝗻𝗴𝘀

Tens of people turning up who have not pre-arranged with you walking around your house, normally just to have a nose with no intent of purchasing it. It’s fun for them and you should definitely try it sometime but it’s not very pleasant for you the homeowner. Some of them don’t even take their shoes off.

𝗧𝗵𝗲 𝗘𝘅𝘁𝗿𝗮 𝗙𝗲𝗲𝘀

Be it extra legal costs after the hammer has fallen (this Which! article covers it nicely) or just the sheer amount it costs to jump through the legal hoops to get it to auction, this is

But at least it’s quick...

𝗜𝘁’𝘀 𝗻𝗼𝘁 𝘁𝗵𝗮𝘁 𝗾𝘂𝗶𝗰𝗸

Those hoops can take around three months to jump through. During this time, you’re paying your bills, council tax, maintenance costs and all this with no fixed sum coming in to budget around.

Some properties sell first time they’re listed and that’s great; if yours doesn’t, most auctions are quarterly and so that’s another 3 months, and another three months, and so on. But, at least then it’s sold and the money’s yours...

𝗜𝘁’𝘀 𝗻𝗼𝘁 𝘁𝗵𝗮𝘁 𝗾𝘂𝗶𝗰𝗸 𝗽𝘁. 𝟮

Once the hammer has fallen, it still takes 28 days to receive your money (once you’ve forked out those extra legal costs). And the way auction houses will guarantee you a sale is that, if the highest bidder fails to complete for whatever reason, they will offer the property to the next highest, then the next and so on.



𝗜𝘁’𝘀 𝗻𝗼𝘁 𝗮𝗹𝗹 𝘁𝗵𝗮𝘁 𝗯𝗮𝗱

As I mentioned, they do guarantee a sale (and 10% upfront as soon as the gavel falls). No traditional estate agent can offer you that. Infact, aside from the nightmare that is dealing with conveyancing solicitors, some of the best war stories I’ve heard come from people who have moved their property from agent to agent to agent just to try and get an offer, and then the horrendous fallout of two or more agents fighting over who should have what share of the final commission. Fun to hear, not so fun to live through.

The vast majority of auction rooms are also very transparent and supportive with the process. The above points are largely myth-busting common misconceptions which have their roots in the staff canteens and local pubs around the country rather than the auction houses themselves.

As with any step of the property selling process, it’s all about accumulating as much knowledge as possible and making an informed decision based on your priorities, not the interests of those who seek to gain from the transaction.

If you’d like more information, please check out our other articles on our page or feel free to contact us directly either through our website or email [email protected]