anyone tried to sell by Auction?

ocalllo

im considering ALL options and someone suggested trying to sell hse in an Auction - i don't know anything about this, has anyone got any experience?

how does it work with fees and reserve price??
i would have thought houses go cheaper in auctions?

many thnks

poppysarah

Watch a few or look up results. Those that put high reserves and low prices in the catalogue won't sell ...

tawse57

You need to go to a few auctions first to wise up on the pros and cons.

There used to be a very good youtube video about the things that go on at auctions of houses.

The danger for buyers is the auctioneer taking 'bids off the wall' - i.e. making out that someone is bidding against you when no one is in order to drive up prices... or for there to be a ringer at the auction bidding up the prices. Does this go on? Surely not!

The danger for sellers is someone connected to the auctioneer wanting your house but not wanting to pay your bottom reserve price so, magically, no one bids enough for your house at auction - the reserve is not met - but then the auctioneer approaches you afterwards with an offer from that nice chap who will pay you X below your minimum price. Does this go on? Surely not!

Allegedly all the above happens but I know nothing and it could all be fantasy as I am sure all auctions are 100% honest.

Richard_Webster

Most people who go to auctions are cash buyers so the prices will take that into account.

duncan303

auction conspiracy theories aside....

one needs to factor in the benefit of a quick sale, indeed why are you even considering auction at all.You need to do all the maths accurately and thoroughly.

In thirty days It will get you cash for your house, whatever its condition, all done

or you can hang on to the bitter end, baking bread and brewing coffee trying to be nice to people you probably cannot stand..

don't forget if you have something saleable competing bidders can take it well over anything obtainable in the estate agents ( assuming estate agents also are 100%)

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Richard_Webster

In thirty days It will get you cash for your house, whatever its condition, all done

Thirty days from the auction.

Auctioneers only hold them monthly or two monthly and there is a lead time to get your property in an auction.

While you are waiting for the auction an estate agent could be marketing the place and a buyer could have his solicitors starting work.

Is this an unusual property or something fairly ordinary?

tawse57

duncan303 wrote: »

auction conspiracy theories aside....

one needs to factor in the benefit of a quick sale, indeed why are you even considering auction at all.You need to do all the maths accurately and thoroughly.

In thirty days It will get you cash for your house, whatever its condition, all done

or you can hang on to the bitter end, baking bread and brewing coffee trying to be nice to people you probably cannot stand..

don't forget if you have something saleable competing bidders can take it well over anything obtainable in the estate agents ( assuming estate agents also are 100%)

..

duncan's points are valid and were more so in the bubble years when auction houses often had a frenzy of buyers.

I am not sure that there are that many out there buying now. I go to auctions and people are looking to get property dirt cheap but you never know your luck.

As for the conspiracy theories - you need to do some serious asking around of what goes on, allegedly, when some properties are auctioned - fore-warned is fore-armed after all.

Best of luck but be careful.

ocalllo

thanks guys i think i need to do ALOT more research on this one!

tawse57

Just go to loads of auctions in your area - there are probably 1 or 2 on per month. Go and have a look. It can be fun.

Stand at the back of the room so that you can see everyone in the room and just observe. Never sit down the front as you can't see who is bidding or whether anyone is bidding.

I was at an auction last year when out of about 30 properties only 1 had anyone bid on it - all the others did not even get a minimum bid.

When the one property had bids on it it was between just two fellas with the latter one bidding up the former. Eventually, the former one stopped and vocally said, so that everyone in the room heard, that the other chap was just bidding him up. The auctioneer then proceeded to complete the sale to the second chap and the second chap got up and ran out of the auction room.

Ten minutes later he sheepishly returned to pick up his car keys and then ran out again.

Be careful.

duncan303

Richard_Webster wrote: »

Thirty days from the auction.

Auctioneers only hold them monthly or two monthly and there is a lead time to get your property in an auction.

Quite correct in fact. In attempting to oversimplify I stand corrected, my point is that the auction dates are known. I can select an auction date to my conveinience, assuming that my entry is accepted for my chosen venue, lets say even 3months away then I can plan deposit of funds approx 4months in the future.

Now the knowledge that I have a fairly certain date of "expectation of 30 day funds" allows me to calculate exactly how much I am prepared to set as a realistic sale price.

I would rather have a guaranteed £5 in my pocket every week rather than the "possibility of £300 or even £350 " annual jackpot, I can make that first £5 work for me on week one. simple compound. Similarly if I was say haemorrhaging funds hanging on to "save face" is quite ridiculous. Some people are being crippled simply to "service debts". By not restructuring immediately people are wasting very large sums of money they could be enjoying

Auctions are an effective tool in planning structuring of assets.

Of course it is possible that the only people in the saleroom are observerers or sellers, but let's suppose that you are not trying to offload dross at an unrealistic price but have something worth selling then you will, if the price is right, attract interest. The willingness to use auctions attracts purchasers who are sometimes prepared to settle handsomely beforehand rather than take the risk of an open floor.


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DKLS

One benefit of auctions, is some people lose their sanity in the auction room, and bid way over what a property is worth, I have seen auction fever plenty of times at antique auctions, and didnt think it went on in property auctions, but have been to 6 property auctions so far and at each were people ready and willing to pay over the odds.