How House Auctions Can Help You Sell Property Fast

Property auctions are extremely exciting! Whether you’re a buyer or seller they definitely have an “edge of the seat” quality to them. As a seller auctions give you the opportunity to reach a whole new set of qualified house buyers. Read on to find out how to sell your home at a property auction. Or, if you’re in a hurry read our top tips for selling property at auction.

Property auctions can give you a quick sale. A few private sellers like you, are choosing to sell through the sale room.

Reason? Well two reasons. There is a set timetable for the sale – 28 days or less. Ideal if you’re looking to sell your house quick.

Also, in today’s market, if the marketing is done correctly, you probably will get a good price. This partly explains the increasing number of properties being sold through the sale room – at ever higher prices.

The average price of an auction lot rose a whopping 30% during 2007. What’s more these days around 50% of the people attending residential auctions are cash buyers. The two statistics are almost certainly linked.

Here you will find out precisely how to sell your house at auction:

– A short history of property auctions
– Which houses can sell well and why?
– Why to achieve a good price in the sale room
– How to use to your advantage to sell your house fast
– The advantages of selling through property auctions
– The risks of selling at auction
– How to control the risks
– How to choose an auction company
– How do property auctions work
– How to attract a bid on your house
– The main things to consider when selling property at auction

The first question to consider is if a property auction is the right place to sell your property. But before we dwell into that it’s important to have some background on property types and who has been buying at auctions. The house auction scene has changed quite spectacularly in recent years.

The advantages of selling at a property auction

Guarantee
You get a commitment to purchase. The contract of sale comes into force as soon as the gavel falls.

Speed
The timeframe is usually a lot shorter than for properties sold via estate agents. Perfect if you want to sell your house quickly.

Price
The format lets bidders drive up prices. Competitive bidding at a house auction for some types of property can achieve close to open market or may be better prices.

Integrity
You won’t be messed around by buyers (or at least the possibility is extremely remote). There’s no room for re-negotiation or gazumping. All this assumes a reasonable reserve and guide price. But more about that later.

The risks of selling at a house auction

The main risks associated with selling your house at a property auction can be summarised as:

• your property may not sell
• your buyer may fail to meet the completion date
• you may still incur costs if your property sells before the auction

Should you sell your house at auction?

Any auctioneer will be happy to discuss the pros and cons of selling your house at auction. The auctioneer will take your particular circumstances into consideration.

In fact, to get legal for a moment, auctioneers (and estate agents) are both bound by a ‘Duty of Care’. As a potential vendor, they are obliged to advise you on the best method of selling your property, taking into account the circumstances under which you are selling. This should be part of your discussion with the auctioneer when your property is appraised by the auction house. Other methods of sale the auctioneer might advise are via estate agents (‘By Private Treaty’) or by tender.

How property auctions actually work

The mechanics of selling your house at auction are actually very simple:

• you pay entry fees and sale fees
• you set the minimum price (reserve price)
• bids are made in an open, competitive environment so the sale price achieved is public knowledge but..
• you can’t choose the buyer
• the highest bid wins as long as it meets or exceeds the reserve
• bidders can make as many bids as they want to
• your prepare the legal pack with your solicitor
• the contract to buy and sell is made as soon as the gavel falls
• the whole process takes a maximum of 28 days – ideal if you want a quick sale

On the money side of things fees are generally of two kinds: entry fees and sale fees. Entry fees are non-refundable. As a rule of thumb they cover the advertising of the sale. These can run to several thousand for the top London auction houses. The sale fee is a commission based charge and is typically between 1.5% and 3.0% of the final selling price.

It is not necessarily in your interest to choose the auctioneer with the lowest fees. You should be asking yourself is the auction house “fit for purpose”? Another consideration might be the way the auction house sets reserve and guide prices. This is one aspect of selling houses at auction that is not as simple as it should be.

Tip: You’ll get the best price for your property at auction, selling either at an established local auction or a big London auction. These will attract the highest offers. All things being equal avoid selling in July and August at auction if you can.

Sell Property – More Attractive Ways to Sell Property

Property is your priced commodity and selling it poses many technical difficulties. A home may be sold for different reasons, whatever be the reason, profit should be the final outcome. A few years of investment in property should give a handsome gain.

Before you sell property, fixing a reasonable price is very important. A price can be set with a number of options like using a professional evaluator for the property or you can settle for an ongoing price after checking with neighbouring properties being sold recently or just give the specifications and go for online evaluation. Whatever be the means, pricing is a significant factor while going for a sell. A property should never be highly priced as it might chase away buyers, nor it should be priced low, as unwanted doubts about the property might arise leading to stagnant property.

There are two ways of selling property

Use a real estate agent

The primary route is to go for a reputed real estate agent. It is the most established and highly used route to sell property. Before putting a property for sale the following items should be kept ready.

  • Make a list of prospective buyers and send details of property to them.
  • Take photographs of your property to show to the buyers so that they get an idea of the property they are going to deal with.
  • Select appropriate time for each prospective buyer to view your property. Keep in mind to select different time for different buyers.
  • Enquiries through phone or in person should be handled courteously.
  • Assist the agent in negotiating the price. Never leave everything to the discretion of the real estate agent.

While opting for real estate agents a straight five percent commission is struck never to forget the VAT. A major demerit of real estate agents is they are always interested in striking the deal as early as possible and get away with their commission. In the process they normally compromise the deal in the favour of the buyer. They may at times even coerce you into an unrealistic transaction.

Private selling of property

Another option is going for private selling. This is more lucrative as you can save on unwanted commissions you pay to the real estate agents. There are two options to sell property privately – one is to go for ‘property for sale signs’ outside the property to be sold and the second is for online sales.

The decision to go for private selling involves little bit of homework. An attractive sign board should be placed on the property to be sold. It should posses your contact numbers to enable the customer to reach use immediately. Ensure that the number is in working condition to avoid losing customers. Once the necessary plans are laid, spread the word in the market through friends, relatives and neighbours. Make sure most of the people in the locality are aware of the sale.

Next best option to sell property would be to go for free advertisement in local newspapers and wait for the response.

Internet is the next big opportunity. There are websites which offer free advertisement sections, list your offer there and await reply. It is well known that more than 50% of the buyers browse the net for hot properties. It is the most convenient option to sit at home and wait for buyer, not just wait you can see you property moving too.

In case you want to save on real estate agent commission, go for private selling. This is cost effective and you can deal with the customers directly.

To sell property it is always best to opt for private selling as it has the merits of handling the buyer straight. You can feel the pulse of the buyer and negotiate accordingly. Real estate agents at times may gamble between the seller and the buyer and make profit in between. To overcome such situations it is best to opt to sell property privately.

Selling privately not only saves money but also time and tension. You can work at your own pace. Ahead of selling a property clean up the place to attract customer. Not only the property but the surroundings also could be cleared to make your deal more lucrative.

Selling Property – Valuing Your Property

Selling property privately has many advantages over using an estate agent. However estate agents can provide useful local information not available from the internet. Despite this many who have sold there home privately have benefited from the following:

o Saving thousands in commission

o Savings in time spent selling home 

o Experience a wider choice of online services

o A feeling of remaining in control

o Reduction in stress

o A sense of achievement.

Selling property-What is your home worth Selling property privately means that you will have to arrive at the correct price to sell your home.House prices and the value of your home is a major topic for potential buyers and those already on the property ladder. There are now ample resources enabling you to value your own home, making it easier to sell your property privately.

Before you value your property you must arrive at two important figures:

1. The lowest price you will accept for your property

2. The ideal price you would like to achieve

Research Gather all the facts before arriving at a realistic price for your property by:

o Using online House Price calculators which will give you a guide price

o Using the internet to find prices of similar properties in your area

o Looking at House Prices statistics this can help identify the trend over the last 12 months.

o Using house price websites to discover exactly the prices that properties had sold for in your neighbourhood

o Research local paper and estate agents windows.

UK Housing Market Price Data

Halifax & Bank of Scotland House Price Data:

Nationwide House price index:

UK House Price Calculator

UK House Price-Websites

Net House Prices: Instant online house prices throughout the UK

Mouseprice.com Find the price paid for every house sold in England & Wales

Our Property: Millions of prices direct from the Land registry:

UK house price predictions

Sell property with an estate agent can be rewarding and of course the savings in commission can be huge, it should be remembered that real estate agents offer an expertise about their local housing market that is hard to replace and that going it alone is simply a matter of personal choice.  

Which States Sell Property For Back Taxes? How Can I Buy Them?

Which states sell property for back taxes? The answer: all of them. When a person is delinquent for long enough on their property taxes, in every state in the United States, that property will eventually be sold. Some states/counties sell for just the amount of taxes owed by a lottery system. Usually properties are sold at auction, to the highest bidder.

The bidding generally starts at the amount of taxes owed, but as you can imagine, rarely sells for the opening amount. Most decent properties will sell for close to retail value, due to the increasingly competitive nature of the industry. However, that doesn’t mean that if you’re interested in buying tax property that you should be scared off. If you are just starting out, tax sale isn’t the place for you, but you can still get tax property for a steep discount – as low as a few hundred dollars, in many cases – if you follow a few simple rules.

1. Again, don’t attend the tax sale. You will likely waste your time and be outbid, and even if you aren’t, you have to pay your entire bid, in cash, at the sale – and you won’t be able to inspect the property you’re buying beforehand. Plus, most owners pay off their taxes during the redemption period and you’ll likely just end up disappointed.

2. Do buy tax sale property directly from the owners – but only after tax sale. Let the bidders at tax sale tell you which properties are worth your time – check the results of the tax sale and see which properties were hot. Then, wait until almost the end of the redemption period.

By this time, owners that can pay off their taxes will have done so. Those that can’t will need to sell quickly to avoid losing the property to the government entirely. If you approach these owners at this particular time, you will find they are ready to sell for a steep discount – or, that they have already decided to just let the property go. This last group of owners is your gold mine – they are often willing to sign their deed over to you for a few hundred dollars, just to get it over with sooner.

If you follow that method of tax sale investing, you’ll find yourself head and shoulders above your competition that is bidding at auction or trying to get to owners early in the game. It’s the only surefire, legal way to get property for as little as the taxes owed, and your competition simply doesn’t have the sense to do it.