How to sell your property at auction

If you’re thinking of selling your home, you might not have considered all of the different options that are available to help you get the best deal. In a market where buyers outnumber available properties by 24 to 1, there’s never been a better time to reach a wider range of buyers and get the best price for your property. The way to a quick, easy and price-busting sale, may lie in an alternative selling method – online property auction.

Why sell through property auction?

The Modern Method of Auction (MMoA), also known as online Conditional Auction, is an increasingly popular way to buy and sell a large range of properties, from family homes, city pads, retirement investments and everything in-between. The perception that auction offers the ‘fixer-uppers’ is long gone, with MMoA providing the opportunity to buy a range of homes that are ready to move into, just as with the traditional methods of buying.

Despite preconceptions about the sort of prices that can be secured for properties at auction, sellers can in fact command high prices through the competitive process. In 2021, clients using iamsold to sell their homes made a combined total of £14million over their reserve prices.

Contrary to popular belief about the types of buyers at a property auction, it is not just cash buyers or seasoned investors who can pick up a property at auction. MMoA’s 56-day timescale* enables buyers to use mortgages to fund their property purchase, which enables a wider variety of people to take advantage of auction to find their new home – even first-time buyers.

Selling through MMoA is quick, secure and hassle-free. It offers more security and less chance of the sale falling through- with a 95% completion rate! Here’s how it works:

Call in the experts

If you’ve decided you’re ready to put your property on the market, during your initial appointment with an Estate Agent, they will ask questions to understand your circumstances to determine which method of selling will be best suited to you. If a quick and secure sale is needed, they’ll likely recommend auction. Prior to this, if you have already decided to sell via auction, contact an Estate Agent offering this method to arrange an appointment and talk through your options.

Prepare the paperwork

Once you’ve agreed to sell via the Modern Method of Auction with the Estate Agent, you’ll need to instruct a Solicitor to help with the legal side of things, including the development of an Auction Pack. The Estate Agent may recommend some firms, or you might have a Solicitor in mind already. The Auction Pack is a vital part of the process for buyers and enables them to purchase with confidence.

The pack will typically include documents such as an Official Copy of Register of Title and Title Plan or Copy Deeds to the property, search results – including the results of Local Authority and Environmental Searches and the property’s Energy Performance Certificate (EPC). It will also include a Property Information Form, which will give information such as whether works have been undertaken to the property, any ongoing disputes or insurance issues, and general information regarding the property, such as parking arrangements. A Fixtures and Fittings Inventory document will also be included, as well as any other relevant documents, such as Special Conditions of Sale, Planning Permission Documentation, Management Information, Leases and Tenancy Agreements.

Secure your minimum sale price

You’ll agree an undisclosed Reserve Price with your Estate Agent prior to the sale process starting, which means your property won’t sell for anything below that price, as well as a starting bid price, known as a guide price. This will ensure that you don’t get less for your property than your desired amount, once the auction begins.

Get photo-ready

Your Estate Agent will arrange the photography and marketing of your property in the usual way – this is your chance to showcase all that your property has to offer potential buyers. Legal checks and preparation of the property’s Auction Pack will be carried out by your Solicitor. The property will be advertised to generate as much interest and exposure as possible before the auction is live, whilst the Auction Pack is being prepared.

Wait for the winning bid

The auction goes live with an agreed start and end date, and the bidding can begin. Bids are visible throughout the auction, and competitive bidding can help to drive up the highest bid price, so you could receive more than your Reserve Price.

Begin the course to completion

Once the auction is over, the highest bidder pays a Reservation Fee and signs the Reservation Agreement and your property is officially sold. The completion process can then get underway and you can sell your property with ease.

The competition process for MMoA typically takes 56 days*, making it substantially faster than Private Treaty. As contracts are exchanged and documents are signed, sellers can use iamsold’s online platform to receive updates and check in with its progress.

To find out more about the benefits of selling your home via the Modern Method of Auction as well as the additional benefits of auction visit www.iamsold.co.uk/auction.