If you make the important decision to sell your house at a property auction, instead of using an estate agent to sell the property on the housing market, it is integral to your success to choose the right UK Property Auction House. Finding the property auction house and auctioneer that suits your needs and circumstances takes preparation beforehand - it is no different than searching for the right estate agent in that you must do work ahead of time to determine who is more suited to your particular needs. The property auction house and auctioneer, like an estate agent, are integral to finding you a buyer for your property at the asking price. Before you choose a UK property auction house, make sure you educate yourself about the auctioneer. You can do this by checking to see whether he or she is a member of a professional body, such as:
National Association of Valuers and Auctioneers (NAVA)
National Association of Estate Agents (NAEA)
Institute of Professional Auctioneers and Valuers (IPAV)
Irish Auctioneers & Valuers Institute (IAVI)
Royal Institution of Chartered Surveyors (RICS)
Association of Residential Letting Agents (ARLA)
Association of Residential Managing Agents (ARMA)
If you opt to use the services, experience and expertise of a professional auctioneer, you are more likely to have success selling your property. But you can only know if the auctioneer and property auction house you choose will work for you if you ensure that they are legitimate. If the auctioneer you are considering is part of at least one of the above groups you can rest assured that they are a good choice.
When choosing a property auction house it is also important to pick one that will most likely sell your property. Essentially, if you sell your home or property with a property auction house that has comparable properties already listed in the catalogue, at prices that are in your home's price range, you will be more likely to find a buyer who is willing to pay the listing price. On the other hand, if you list in a catalogue in which most of the properties for sale are run-down houses in a bad location that need extensive repairs, and you have a well-kept property in a good neighbourhood, you are going to have trouble making a sale. Finding a property auction house that sells properties similar to your home will make it that much easier to find the right buyer.
Costs Involved
Whenever you begin the process of selling a house or property it is integral to start by calculating the costs that will be involved. Selling a house always has added costs, so it is extremely important to find out what you will have to pay ahead of time, in order to properly determine how much you will get out of the sale in the end. Even when selling with an estate agent, on the housing market, you have to be concerned with extra expenses and costs that come with the territory. For instance, you have to pay the estate agent and cover other expenses, such as small home improvement costs or the cost of an appraisal. And although selling your house or property through a property auction house has many benefits and advantages over selling through an estate agent, it is important to understand that selling at a property auction has costs as well. But as long as you prepare for these costs ahead of time and know what to expect, you should have no trouble selling successfully.
The reason why you have to plan for the costs ahead of time is simple. If you are going to sell your house, whether through the traditional property route or through a property auction house, you need to know how much you will put into the venture, especially in relation to how much you will get out of it. If the costs outweigh the potential gain, than you have to consider making a change of plans. Perhaps you can lessen your home improvement costs in order to save some money. But if the gain outweighs the costs, of course, you'll know from the start that selling is a good idea.
So what exactly are some of the costs that are associated with selling your house or property through a property auction house? First of all, the services provided by a property auction house are never free, as they must spend money to get your house sold. When you decide to use a property auction house to sell your property, the auctioneer enters into a sole agreement with you with regards to your property. This allows them to advertise the property in brochures and in a catalogue for you so that you can get your property noticed by homebuyers. Of course, advertising costs money. The auctioneer will charge around 2.5% commission on the sale. Also, know that if your house doesn't sell, and you can't find a buyer, there may be added abortive fees that you may be required to pay.
Property Preparation For Auction
Before you put your house up for property for property auction in the uk you must prepare it so that it makes an impression on buyers. This is similar to what you would do if you were going to sell your property on the housing market, as you need to get your property in top-notch condition in order to attract buyers and ensure you sell at a competitive price. Luckily, there are many ways to prepare your property for an auction that will get you the asking price. You don't have to do major home improvements or renovations, especially if it doesn't fit into your budget, but a few simple fix-ups can make a world of difference. Slap on a new coat of paint throughout the house, and keep the colour scheme fresh, clean and bright. This will give the house an airy and new feeling that can do wonders to attract potential buyers. Paint is probably the most crucial thing you can do to improve the appearance and value of your property, without spending a lot of money.
Another way to improve the condition and appearance of your house is to fix any minor flaws that might give an impression of dirtiness or disarray. Patch up any holes in the wall, replace any missing fixtures, and touch up anything that needs a minor repair. These things may seem unimportant but they can make a big price difference once you begin selling. Another minor 'renovation' you can do is to replace all the old fixtures and lamps that are in the house, especially if they are outdated, with new, more modern ones. When you do this, the house takes on a renovated, updated look without having actually undergone a renovation.
And of course, the most important thing to do is to clean. Make the house spotless before you put it up for the property auction, and get rid of any clutter you may have accumulated over the years. It also helps to place furniture in optimal positions in each room, so that you make the best use of space and don't give an impression of untidiness. Make any landscaping you currently have the best it can look - pull out weeds, and add some colour by planting flowers. Curb appeal is key to selling a property, so increase your chances of a sale by sprucing up the front of your house before putting it up for sale. If you are not currently residing in the property, consider renting some furniture to make the house look more like a show home. People will be more likely to purchase your property if they can visualize themselves living in it.
Most of us are under the impression we can get bargain or repossessed property from auctions, this has come from the media and property discussion forums and for the most part WAS true in the past, but is certainly harder now.
I have been buying and selling using auctions for years, in this time I noted a big change in the property auctions and the availability of repossessed property and other really good bargains. There are regular professionals that go to the auctions, they have got it down to a fine art how to spot what will and won't sell, and these are the guys to spend time with to learn about auctions and how to get a bargain. The people that buy the good deals are the ones that put the time and effort into really studying each property - the ones that understand the auction jargon and how the auctioneer can manipulate the room by taking bids off the wall (yes the wall) just to get a sale going!
There are so many new investors looking for bargain and repossessed property, and they all seem to go like fly's to shit to get them. The more people that go to view these properties - or show an interest before it gets into the auction - the higher the reserve is set, and the more of a stir it causes.
You need to get hold of a few catalogues, read the terms at the back, go to the auctions and learn how the auctioneer works, really take the time to watch and learn his techniques. Take the time to view a few properties, even if you are not interested, and then you can see how they work their system, Monitor a few, and watch what happens to them.
With repossessed property, the agent by law has to get the best possible price and it normally only goes to auction if the agent has run out of time to try and sell it. I have had some property repossessed myself - and to be honest it is not a very nice experience. You get to feel what it is like to be on the other side of it all, and can see how investors look like blood suckers! It does pay to show a bit of sensitivity with these properties, and in my personal opinion you are better to offer to buy property off the struggling owner BEFORE it goes to repossession.
I have also done this, helped owners who needed a quick sale to get themselves out of a sticky mess. It feels a lot nicer than buying it after. I have got a heart ..
So my take on repossessed property is to not look for it - but try to offer to help people Pre-reposession. Put adverts in your local rag saying something like "Need A Quick Sale Call XXX" and stick an 0800 number!
Don't take my word for it, go to the auctions yourself, and see how busy they are. Listen to other peoples conversations and hear what they say - the room will be buzzing with newbies.