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Selling your home at an auction

There are a number of ways you can sell your home, the most popular and widely used is the estate agent route, however more people now are deciding to sell their homes themselves, and the easiest and quickest way to do this is at an auction. Some properties are more suitable to be sold at auction than others, for example if your home needs some renovating it is ideal for auctions as this is what people attending auctions are looking to buy.  The auction itself can push the price of your property higher than you would have previously expected it too, especially if I a bidding war were to break out.  Furthermore, selling at an auction reduces risks of something going wrong and complications in the process, it cuts out the property chain, reduces gazumping and the chances of one party pulling out of the deal. Auctions are a much quicker way of selling your home, after the auction the buyer pays you a 10% deposit and signs all the legal documentation, there after they have 28 days to pay the balance of the mortgage to you.  There is a chance that the property won’t sell at an auction, however, it is often the case that a buyer there will make a direct and smaller offer to you, which you could always accept if you are in a hurry to sell your property. Choosing an auctioneer that you are comfortable with is very important, do your research and find the auctioneer with the processes and procedures that are most suited to you. Ensure you choose an auctioneer that is reputable and professionals.  Auctioneer costs will be in the region of 2.5% and so you should reserve this amount, furthermore you may have to pay for any advertising of your property and legal costs involved in selling the property. After you have chosen an auctioneer and given them the details of your property you will need to appoint a solicitor who will be responsible for preparing the contract and the the legal pack and will help to put together the required Home Information Pack. Before the auction date you will also need to agree a reserve price with the auctioneer.  It is the auctioneer’s job to decide the guide price for the property, this will not be the same as the reserve price you have put in place.Once all this is sorted out, you need to prepare your property as there may be some people interested in viewing your home, make sure you de-clutter, tidy and clean at the very least.  It is possible to receive offers for your property before the auction date, and you are legally allowed to accept an offer should you receive a particularly good one. Keep in mind that if someone is prepared to make you an offer now it is likely that will be prepared to go to auction and bid on the property, which may push the property price higher than what they were initially offering, however there is always the chance that your property won’t sell or will but for a lower price, which is the risk you need to take when you let the property go to auction. You do not have to attend the auction, there is no obligation for you too, however they are an enjoyable experience and it I always good to witness first hand, your property being sold. If your property fails to sell during the auction but you are able to agree a price with someone after the auction, the terms and conditions of the auction still apply to the deal.