It’s common to have lots of questions when considering selling land or property in a live in-room auction. Here are some of the most frequently asked questions we have received. If you have any other questions, please get in touch and a member of the team will be happy to help.
Seller's FAQ
What types of land and property are suitable for auction?
One of the real benefits of auction is the flexibility in the types of land and property that can be sold. From the more traditional vacant, residential property, commercial and mixed-use properties, tenanted or investment properties, to land of varying shapes and size, forest blocks or commercial woodland, development sites (with or without planning permission), garage blocks and freehold ground rents.
Auction is also an excellent option for unconventional properties such as churches, those which are fire damaged or former police stations, public houses or nursing homes.
The only real criteria for selling by auction is the land or property has a Title! The Title doesn’t even need to be registered with HM Land Registry (provided you have the original Title deeds and can prove ownership).
Our clients are as varied as our land and properties and range from sellers with a single parcel of land or a small property, investors looking to sell all or part of a portfolio, to a major landowner looking to divest themselves of some or part of their estate, or corporate clients with several properties throughout the year to sell.
Whatever your situation, whatever your land or property, auction could be the perfect solution for you.
Can I sell a property which is un-mortgageable?
Yes. A number of cash buyers and investors buy through auction so it can be an ideal way to sell a property that is un-mortgageable or has had a sale fall through. Auction properties are sold as seen and you have the added security of an immediate exchange of contracts and a fixed completion date. However, if you are aware of any defects, the purchaser should be aware of these and they must be declared in advance of the auction.
How long does the auction process take?
We hold regular auctions throughout the year. The first task will be to order a legal pack from a solicitor. Depending on the complexity of your land or property, this will normally take around four weeks to complete but we always advise speaking to a solicitor to get a precise quote. We have a preferred supplier of legal packs and we can normally prepare an auction legal pack for £550 plus VAT.
It is important potential buyers have ample time to see the property or land advertised and review the legal pack before the auction. Therefore, we advise allowing at least four to six weeks of marketing time before the auction.
We can start marketing your land or property before the legal pack is complete, but we will not be able to offer the Lot for sale on the auction date unless the legal pack is completed and published.
Once the auction has started, bids are received by the auctioneer and, provided your reserve price has been met, the gavel will fall at the highest bid and contracts will be exchanged.
For Traditional Auctions, completion typically occurs 20 working days after the auction, although an alternative date can be specified if required. For Modern Method Auctions, completion usually takes place within 56 days. For a detailed comparison of both auction methods, please refer to our separate guide here.
What is the difference between ‘guide price’ and ‘reserve price’?
A guide price is an indication of your current minimum acceptable sale price. The guide price is given to assist potential bidders in deciding whether to pursue their interest in the Lot. It is usual a reserve price is set by you at the point of instruction and the auction valuer will be able to assist with reaching the right reserve price.
As the reserve price may not be fixed at this stage and can be adjusted by you at any time prior to auction, a guide price is published. This guide price is shown as a single figure where the reserve price will be within 10% of the guide price.
For example: if the guide price is £175,000, the reserve price will be between £157,500 and £192,500.
Both the guide and reserve prices can change at any time before the auction.
A reserve price is the minimum price at which you allow us to sell the Lot at and the reserve price remains confidential between you and us.
It is important to note the reserve price is the lowest price we are authorised to sell the Lot for, not the highest price. If buyers are wanting to bid more, the price will go up. The role of the auctioneer is to sell for the best possible price through competitive bidding.
How long do you market each Lot for?
We will ideally market your land or property for a minimum of four to six weeks to promote it to as many people as possible and create a competitive bidding environment. However, the sooner you instruct us, the earlier we can start advertising.
Each piece of land or property to be sold is unique so our approach mirrors that. Each will have a bespoke marketing strategy which utilises our extensive branch network, ensuring we create the maximum interest and a competitive bidding environment.
All Lots are uploaded to the main property websites including Rightmove, WeAreTheMarket and OnTheMarket, as well as websites specific to auction buyers and our own website.
We put up a prominent auction board, email alerts to our extensive database, set up social media advertising, include it in our PDF and printed auction catalogue, send out any local and/or national press advertising, and send a press release if applicable.
Do I need to instruct a solicitor to prepare the legal pack in advance?
Yes. As it is a legal exchange of contracts at the end of the auction, it is essential we have a legal pack in advance of the auction. We have a preferred supplier of legal packs and they can usually produce an auction legal pack for a fixed price of £550 plus VAT.
The earlier we have this, the more opportunity potential buyers and their solicitors have to review its contents. It is therefore important you instruct your solicitor as soon as possible.
The legal pack must include the common auction conditions, special conditions of sale, land registry, applicable searches, energy performance certificate (EPC) plus any tenancy, lease and planning details, where applicable.
Please contact your solicitor for advice about your specific property. We can speak to your solicitor to confirm what needs to be contained in the legal pack.
Can I consider pre-auction offers?
We will advise you of any offers we receive on your land or property before the auction takes place. You could, alternatively, ask us not to consider any pre-auction offers and we will update buyers accordingly.
We ask for all offers to be submitted by email or letter and will put them forward for your consideration. We also insist anyone wishing to make an offer, views the land or property (if applicable) and reads the legal pack.
If you choose to accept an offer, it will be processed according to the terms outlined in the auction legal pack. As such, the offer will have the same legal effect as if the property had been sold at auction.
Do I have to accept the highest bid?
No, not unless the bid is at or above your reserve price, being the minimum price the land or property can sell for.
If the land or property fails to reach your minimum price, then it won’t be sold. In this eventuality, we will approach all interested parties and seek to obtain their best offer and put it forward to you for consideration.
We will take your further instructions if you wish us to continue marketing the property post auction or offer the Lot at the next auction.
Is the sale legally binding?
All Traditional Auctions are conducted on an unconditional basis. This means that contracts are legally exchanged at the fall of the gavel. The successful buyer must immediately pay a deposit of 10% of the purchase price or £5,000 (whichever is greater) and sign the memorandum of sale.
For Modern Method Auctions, the process differs slightly. Instead of an immediate exchange of contracts, the buyer pays a non-refundable reservation fee at the close of the auction. This fee secures the property and significantly reduces the risk of withdrawal, ensuring a higher level of commitment from the buyer.
Do I still need to insure the land or property?
Up until exchange of contracts to the new owner, it is your responsibility to insure the land or property. At exchange the buyer should arrange their own buildings insurance. However, as a safeguard, we strongly recommend you keep the land or property insured until it has completed.
What if my land or property doesn’t sell?
There are several options if your land or property doesn’t reach its reserve on the auction day. At the end of the auction, there may be bidders in the room who narrowly missed out and we will get their details and work on a deal.
We will continue to market it for a further two weeks post auction if you wish us to do so. We will contact previously interested people who have viewed the land or property, downloaded the legal pack, or enquired. We can also re-enter your land or property in a future auction at no extra cost. Your auction valuer will contact you after the auction to discuss your options.
Can I sell a property I’m living in?
Yes. It is possible to sell a property by auction which you are living in as long as you can move out on or before the completion day. You can decide on the completion date that suits you best in advance of the auction.
How long is completion?
For Traditional Auctions, completion generally occurs 20 working days after the auction. For Modern Method Auctions, completion usually takes place 56 days after the auction. However, these timeframes can be adjusted to suit your circumstances, provided the change is agreed upon in advance and clearly outlined in the contract of sale or special conditions. We recommend discussing your preferred timeframe with your solicitor before the legal pack is prepared.
Why do you need my identification to undertake an Anti-Money Laundering (AML) check?
It is a legal requirement for us to see two forms of identification and undertake an Anti-Money Laundering ‘AML’ check for all sellers (before we can start marketing the land or property) and all buyers.
The AML check will leave a soft footprint on your credit report, but it should not affect your credit rating.
