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Houses for auction?
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Fred_Bloggs
Posts: 34 Forumite
When houses are put up for auction what is the process of doing so, how much do the auctioneers receive, is it a percentage? How fast do the buyers have to pay the full cost of the property?
This is just something I'd be interested to know. If a house is say £150,000 on Rightmove and the vendor is paying the estate agent 1% - £1500 but the house does not sell, so the vendor decides to put the house up for auction will the estate agent still be paid?
This is just something I'd be interested to know. If a house is say £150,000 on Rightmove and the vendor is paying the estate agent 1% - £1500 but the house does not sell, so the vendor decides to put the house up for auction will the estate agent still be paid?
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Comments
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Google 'property auction'.
Loads of guides, and also each auction house will have its own published rules etc.
Lots to read!0 -
Fred_Bloggs wrote: »When houses are put up for auction what is the process of doing so,
Generally, the auctioneer comes to look at your property and suggests what the reserve should be, and what price it might achieve.
If you decide to proceed, you sign the contract.Fred_Bloggs wrote: »how much do the auctioneers receive, is it a percentage?
It varies - but with 'traditional auctions' it tends to be a fixed fee plus a percentage of the sale price. You have to pay the fixed fee, even if it doesn't sell.
It tends to be more expensive than selling through an EA.Fred_Bloggs wrote: »How fast do the buyers have to pay the full cost of the property?
With conventional auctions - completion (and payment) is usually 28 days after the auction.Fred_Bloggs wrote: »This is just something I'd be interested to know. If a house is say £150,000 on Rightmove and the vendor is paying the estate agent 1% - £1500 but the house does not sell, so the vendor decides to put the house up for auction will the estate agent still be paid?
Depends on the contract you've signed with the EA. But if the seller is sensible, they would probably set things up to avoid paying any EA fee.
But the most important consideration is that most properties would sell for less at auction than they would through an EA.
Why are you asking?0 -
We've previously looked into selling a property at auction. We were quoted £1000 + vat for insertion in the auction plus 2.5% + vat of the hammer price. Things such as a for sale board and ads in local newspaper were extras.......
Decided not to go ahead in the end.Mortgage-free for fourteen years!
Over £40,000 mis-sold PPI reclaimed0
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