How to Sell a House at Auction Quickly (2023)

Updated: November 2023

Looking to sell a house at auction?

It’s a route that promises speed and finality, contrasting sharply with traditional sales or selling without an estate agent in private deals.

Peek at our infographic next, detailing eight critical steps that could tilt the auction gavel in your favour.

To help you understand a little better, I’ve expanded on each point a little below, so give it a read if you’re still unsure about anything!

1) Assessing Auctioneer Fees

When you decide to sell a house at auction, understanding the auctioneer’s fees is crucial. These typically include a commission, usually around 2.5% of your property’s final selling price, but can vary by auction house.

This fee generally covers the cost of the auctioneer’s services, from listing your property to hammering down the final bid. Additionally, be prepared for potential legal and advertising fees which can impact your net proceeds. It’s vital to consider these costs upfront to set realistic expectations for your property’s net gain.

2) Choosing the Right Auction House

Selecting the right auction house is pivotal when you’re looking to sell a house at auction. Start by researching auction houses that specialize in your property type and have a strong reputation. Evaluate their success rates, read testimonials, and consider their reach — do they attract local, national, or even international buyers?

A track record of successful sales and robust marketing capabilities are key indicators of an auction house that can deliver results, maximizing the visibility and appeal of your property to potential bidders.

Related: Traditional property auction vs Modern property auction

3) Pre-Auction Offers: To Accept or Not?

Navigating pre-auction offers can be a game-changer when you plan to sell a house at auction. While accepting an early offer could mean a quick sale, weigh this against the potential of a higher final bid at auction. Legally, you’re within your rights to accept, but strategically, consider whether this aligns with your goals.

• Does the offer meet your financial needs?
• Could the competitive environment of an auction increase the property’s sale price?

Reflect on these pros and cons carefully, as your decision could significantly impact the outcome of your sale.

4) Setting Your Reserve Price

Determining a reserve price is a critical step in the auction process. This is the minimum amount you are willing to accept for your property, a safeguard that ensures you don’t sell below a certain value.

To set a competitive yet realistic reserve price, consider market trends, your property’s valuation, and the auctioneer’s advice.

5) Guide Price Strategy

The guide price is your auction billboard—it entices bidders and sets the stage for the bidding war. It’s intrinsically linked to the reserve price but is typically set lower to spark interest.

When setting a guide price as you sell a house at auction, aim for a number that’s attractive to buyers yet close enough to your reserve to ensure your interests are safeguarded. It’s a delicate lure that, if set astutely, can lead to bids flying well above your reserve, culminating in a triumphant sale.

6) Preparing your Property for Viewings

Making a strong first impression is critical when preparing to sell a house at auction. A property that looks well-cared-for and visually appealing can significantly impact the bidders’ perception and the final bid. Much better than a property in poor condition.

Here are some key points to consider:

• Kerb Appeal: Enhance the property’s exterior to make it inviting. A well-presented facade can influence a bidder’s first impression positively.
• Fresh Paint: A new coat of paint can rejuvenate an outdated space, making it more attractive to potential buyers.
• Garden Grooming: Tidy up the garden, trim the hedges, and clear any debris to showcase the property’s outdoor space.
• Minor Repairs: Fix any obvious defects that could deter bidders, such as leaky taps, cracked tiles, or holes in walls.
• Cleanliness: Ensure the property is thoroughly cleaned; a neat and tidy space is more appealing and can influence the perceived value.
• Declutter: Remove personal items and excess furniture to make the space feel larger and allow bidders to envision themselves in the home.

While staging a home to the nines isn’t essential for an auction, these steps can significantly enhance the attractiveness of your property, potentially leading to a more successful auction outcome.

7) Leveraging Self-Advertising

While auction houses employ robust marketing strategies, sellers can play a proactive role to sell a house at auction. Supplementing these efforts through self-advertising can broaden your property’s exposure and attract more potential bidders. Here’s how:

• Utilize social media platforms to share your listing, targeting local community groups and real estate pages.
• Create buzz with a compelling story about your property, possibly highlighting unique features or the potential for investment.
• Engage your personal network by sharing your auction details with friends, family, and colleagues.
• Consider local newspapers or community bulletins for traditional reach, especially if targeting a demographic less present online.

Leveraging these additional channels can increase interest and drive competitive bidding on auction day.

8) The Auction Day Dynamics

Auction day is the culmination of your efforts to sell a house at auction. Here’s what to expect:

• The atmosphere will be charged with anticipation as bidders gather to compete for your property.
• The auctioneer will manage the proceedings, driving the energy in the room to encourage higher bids.
• If the reserve price is met, the property will sell to the highest bidder; if not, the auctioneer may initiate negotiations between you and interested parties.
• Post-auction, there’s often an opportunity for negotiation, where you can discuss terms with buyers who may have fallen just short of your reserve.

Understanding these dynamics prepares you for the range of outcomes that can occur, ensuring you’re ready to make informed decisions on the day.

Post-Auction Considerations

If your property doesn’t sell at auction, it’s not the end of the road. There are strategic steps you can take to achieve a sale still:

• Negotiate with Interested Parties: Engage with bidders who showed interest but didn’t meet the reserve price. There’s room for negotiation that could lead to a satisfactory sale.
• Review Marketing Strategies: Reassess the property’s marketing campaign. Could different or additional advertising channels make a difference?
• Adjust Pricing Strategy: If the reserve was not met, consider adjusting it. Market feedback on auction day can provide valuable insights into how much buyers are willing to pay.
• Re-list at a Future Auction: Sometimes, timing can affect the sale. If market conditions weren’t favorable, wait for a more opportune moment to re-auction the property.

Legal and Financial Advice

Securing expert legal and financial advice is indispensable when you’re preparing to sell a house at auction in the UK. This ensures you are fully prepared for the transaction and understand all the contractual obligations involved. Here’s why this is crucial:

• Conveyancing: A solicitor will guide you through the conveyancing process, ensuring all legal paperwork, including the title deed and searches, are in order.
• Legal Pack Preparation: Your solicitor will prepare a comprehensive legal pack, which is essential for the auction process, providing potential buyers with all necessary legal information about your property.
• Understanding Auction Terms: Legal advisors help decipher auction terms and conditions, ensuring you’re aware of your rights and responsibilities, such as the potential for penalties if the sale falls through.
• Financial Planning: Financial advisors can assist with understanding the tax implications of your sale, any potential capital gains tax, and planning your finances post-sale.
• Reserve Price Implications: Legal and financial experts will advise on setting a realistic reserve price, balancing your financial objectives with the attractiveness to potential buyers.

Consulting with professionals versed in UK property law and financial regulations ensures you navigate the auction process with clarity and security, mitigating risks, and maximizing the potential for a successful sale.

Final Thoughts & Key Takeaways