Selling at auction? costs??

shamac

If you put your house up for auction what are the costs involved:

a) if it sells?
b) if it doesn't sell?

Does a house being auctioned need a HIP?
House is in Northumberland-anyone local recommend a busy auction or estate agent they would recommend?

Thanks in advance
Sharon

Doozergirl

There tends to be a fee for putting the house in auction in the first place. Last time I ever looked it was 350 + VAT in Birmingham.

Then you will be charged a percentage which you will have to negotiate with the auctioneers, like you would pay your average EA so expect at least another 1% + VAT.

Not near you but there are plenty of national auctions as well. In fact, local auction business seems to have fallen flat here - I used to recommend people use local auctioneers as the pricews used to be silly in this part of the world; not so sure now as most lots haven't sold near me this year as the guides were as stupid as usual.

Allsop, savills, barnard marcus, countrywide & andrews robertson are the big ones I look at. Andrews Robertson is a little more London centric.

Darth_Marty

In my experiences Auctions cost at least 2% rising to 3% in some places.
They are a surefire (well, nearly) way of selling quickly and easily but price is the main issue here. Low guide price and low reserve will attract people and hopefully get people biding against each other, only 1 interested party and its your reserve at best.

Theres a risk but if you can afford it then it is sometimes the way to go.

Dont know your area so cant comment.

lynnemcf

Pattinsons cover your area www.pattinson.co.uk They charge an upfront auction entry fee of £650 (£747.50 inc VAT) plus 3% of the selling price (subject to a minimum fee of £3000). If it doesnt sell you dont pay the 3%

You do require a HIP

kettlefish

We used Bagshaws auctions, they are part of the Sequence group of estate agents, http://www.sequencehome.co.uk/ to see if there is one near the where you are... Not sure if there is one in or near Northumberland but then my geography's always been rubbish!

As a guide, we were quoted by two companies, one (Bagshaws) was £575 admin fee, and 1.5% of selling total. There was a discount because we paid the admin fee up front, worked out £480ish. The other company had a cheaper admin fee, but 2% commission, so it's worth comparing which will cost more depending on selling price.

We still needed a HIP despite the property being "untenable" - bear in mind it had a burst boiler, no electricity, and the loo didn't flush! You will probably need one!

We sold on 1st October 2008.

theGrinch

if you contact local or smaller auctioneers they may not charge to enter the lot.

importantly, you should consider which auctioneer will give you the best chance of achieving a sale at the maximum price.