Selling via auction

catfish50

I'm wondering about selling my flat through an auction rather than using a normal estate agent. This is a 2-bed maisonette in a block of 15 similar. One a few doors away has been up for sale for over a year. There are some things wrong with it which aren't wrong with mine, but it still makes me wonder how long it might take to sell mine. I don't have an urgent financial need to sell quickly, but I'm not in best health and I dread the stress of a prolonged time on the market.

I would really appreciate hearing from anyone who has sold at auction. I know I should expect it to sell for a lower price, but how much lower? How much would I lose in fees if the flat didn't meet the reserve price? Who sets the reserve price -- the seller or the auction company? How do viewings work? etc

Any advice welcome.

giddypenguin

If your in no rush, I'd say put it on the general market - it's not that stressful (until someone actually makes you an offer! But you can limit that stress). If you go the auction route, then you pay up front fees for advertising, which you don't get back if the house doesn't sell (these vary £250-£500), plus the commission you pay on completion is usually higher than general EAs (EA:1-1.5%, auctioneers: 2%). The auctioneer usually comes round and suggests a reserve price, all the auctioneers I've met have been quite insistent on their reserve price. As for viewings, I'm not sure as we ended up selling via an EA (well, hopefully we don't exchange until tomorrow), but if you are going to remain living in the property then you can tell the auctioneer to arrange appointments.
Hope that helps.

Oops forgot to mention, most auctioneers will tell you if they think your property is suitable for auction, most told us to try and sell through an EA (until they saw the structural problems!) So have a chat with a few companies and see what they say - BUT make sure to talk to a few companies, don't just take what one company says as gospel.

catfish50

giddypenguin wrote: »

If your in no rush, I'd say put it on the general market - it's not that stressful (until someone actually makes you an offer! But you can limit that stress). If you go the auction route, then you pay up front fees for advertising, which you don't get back if the house doesn't sell (these vary £25-£500), plus the commission you pay on completion is usually higher than general EAs (EA:1-1.5%, auctioneers: 2%). The auctioneer usually comes round and suggests a reserve price, all the auctioneers I've met have been quite insistent on their reserve price. As for viewings, I'm not sure as we ended up selling via an EA (well, hopefully we don't exchange until tomorrow), but if you are going to remain living in the property then you can tell the auctioneer to arrange appointments.
Hope that helps.

Oops forgot to mention, most auctioneers will tell you if they think your property is suitable for auction, most told us to try and sell through an EA (until they saw the structural problems!) So have a chat with a few companies and see what they say - BUT make sure to talk to a few companies, don't just take what one company says as gospel.

Thanks, that's helpful. Maybe the auctioneers would just tell me to go to an agent. There aren't any structural problems as far as I know.

I've been through the business of selling through an agent, many, many times. I do find it stressful, and more so as I get older. I think it's because it reminds me of exams.

Congratulations!

giddypenguin

Thinking back, our house has been on the market for almost 18 months now, in that time we've sold 4 times (I think) and something has gone wrong every time, lost about £2k (from our wedding budget) and the whole reason we put the house up for sale when we did was to avoid my final year uni exams (which start in May) Ha! Quite stressful. Please save your congratulations until tomorrow! We are really trying not to get excited until then!

I guess it is quite stressful after all... But, I find shouting at EAs really help with stress. I always feel better, and they almost always deserve it! I reckon if we ever sell again we'd try and do as much as we could without an EA.

catfish50

giddypenguin wrote: »

Thinking back, our house has been on the market for almost 18 months now, in that time we've sold 4 times (I think) and something has gone wrong every time, lost about £2k (from our wedding budget) and the whole reason we put the house up for sale when we did was to avoid my final year uni exams (which start in May) Ha! Quite stressful. Please save your congratulations until tomorrow! We are really trying not to get excited until then!

I know what you mean. The congratulations were for the wedding.

I guess it is quite stressful after all... But, I find shouting at EAs really help with stress. I always feel better, and they almost always deserve it! I reckon if we ever sell again we'd try and do as much as we could without an EA.

It's just the advertising, isn't it? Buyers all look on rightmove and findaproperty etc, and as far as I know you can only get on those sites through being registered with an agent. I hate estate agents. Solicitors too -- I even did my own conveyancing a couple of times, and it was MUCH less stressful than paying a solicitor to do it and never know what was going on or find out he's gone away on holiday instead of replying to the other side's questions. Mortgage providers really don't like it though so I wouldn't try it again.

giddypenguin

Doing your own conveyancing sounds extremely complicated - rather you than me! We landed on our feet with an AWESOME conveyancer, who has been fantastic. I think you can get online EAs who just put your house up on rightmove, and you do the viewings etc, costs about £300. Although you'll have to do the viewings etc, I think it'll just be easier. One thing that really gets my goat is lying, and we have been consistently lied to throughout this process, "Yes his mortgage is ready to go" then a few days later "You actually want proof of funds? Well he's still applying for it, but it's a sure thing" Grrrr... would have been ok, but that was on the date we were due to exchange.

catfish50

giddypenguin wrote: »

Doing your own conveyancing sounds extremely complicated - rather you than me! We landed on our feet with an AWESOME conveyancer, who has been fantastic. I think you can get online EAs who just put your house up on rightmove, and you do the viewings etc, costs about £300. Although you'll have to do the viewings etc, I think it'll just be easier. One thing that really gets my goat is lying, and we have been consistently lied to throughout this process, "Yes his mortgage is ready to go" then a few days later "You actually want proof of funds? Well he's still applying for it, but it's a sure thing" Grrrr... would have been ok, but that was on the date we were due to exchange.

Hmmm. I didn't know about online estate agents. Just googled a few. It does look easier, but I'll have to think about whether I can handle the viewings. I live alone and am a little worried about the security aspect. But I'm going to think it through and see if I can make it work. Thanks for mentioning it.

Is your brilliant conveyancer also online, or is it a firm local to your area?

giddypenguin

He's a local guy, it's a one-man thing, and he's just really good, would recommend him to any one. He does have a website, although I'm not sure if he does long distance type stuff. PM me if you want his details. Other than today, when he was in a meeting all afternoon, we've felt like his only client, will talk to you any time, and as he runs everything he automatically knows what your on about, don't have to wait to go though a million extension numbers and receptionists.