Raise your hand for property auctions

Selling or buying property at auction is an attractive option, with benefits for both buyers and sellers.

Property up for sale at auction can often sell in a matter of days, in contrast to property sold on the open market (private treaty) which can take up to a year, if not more. Sales success rates at auctions are high, and an auction can be comparatively stress-free, as an experienced auction house manages the marketing, the bidding process, buyer registrations and all transactions.

Indeed, certain personal circumstances often require a speedy property sale, such as selling an inherited property or emigrating abroad.

Auctions are known to attract a wide range of buyers keen to engage in the competitive bidding process, including cash buyers, developers and investors. Prospective buyers all have access to the guide price at the outset, and can prepare for auction and make informed decisions about their bid and their maximum offer. And cash buyers have fewer hoops to jump through than mortgage borrowers, so auctions can suit them very well.

Lloyd Coleman knows all about property auctions: with over 30 years’ experience in the property industry, Lloyd is now Head of Business Development at Benjamin Stevens Auctions, winner of the British Property Awards for North London. Based in Edgware, the company sells properties and land across the entire UK.

Lloyd took time out from his busy schedule to chat with the team at SLR Wealth and explain more about the benefit of auctions, the process, and the key things to be aware of.

“Selling property at auction in the UK is a relatively stress-free, transparent and speedy process. In fact, speed is the main reason that sellers opt for auction – they want to sell their asset fast. We can sell property in a matter of days, compared to private treaty sales which can take up to a year.

At Benjamin Stevens Auctions, we like to showcase properties for at least one month before the auction, and prospective buyers can come to open days for viewings. During this time, surveys can be done – however, the interested party bears the costs for these with no guarantee of purchase at this point.

Our auctions take place via live stream, making them even more convenient and able to attract buyers from across the UK and the world, and our buyers have the comfort of being able to see the auctioneer during the live stream auction. Our team prepares an Auction Legal Pack in preparation for the day, and buyers can read this through and make a bid once they are happy. Once the bid reaches an acceptable level, the property is sold and the paperwork signed immediately.

In the event that the reserve for the property isn’t met, we work to ensure the best possible outcome for both seller and buyer and get a deal agreed.

Once the hammer falls, the winning bidder will pay an immediate non-refundable 10% deposit together with an administration fee, and contracts are exchanged. The buyer has 28 days to then complete, which makes things smoother for cash buyers. Those who need finance can usually organise a bridging loan, which is quicker than securing a mortgage, but more expensive.

In conclusion, auctions offer advantages for both buyers and sellers. Auctions are completed quickly and the whole process is transparent and convenient. Contracts are signed immediately after the sale and there are no chains and buyers don’t have to worry about counter-offers (‘gazumping’). Although the process of auction can seem overwhelming, we do all we can to make it seamless, stress-free and quick”.

If you’ve never considered auction before, Lloyd and the team at Benjamin Stevens Auctions will be happy to answer any questions you may have – find out more about how you can contact them here.