Homeowners don’t have to sell their property on the open market.
There are several alternative methods available, too.
House auctions are one of the most popular methods.
This blog looks at how long a house auction takes and the factors around this.
What is involved in a house auction?
A house auction is an event where you try to sell your property to developers and cash buyers who ‘bid’ for it using a specialist auction house.
Before the bidding proceeds, auction houses usually create a catalogue (or website listings) of properties in the upcoming auction. This includes the starting asking price for each property.
(Remember, the asking price is different from the sale price. Competitors’ bids can drive it up).
Potential buyers have a few weeks to arrange in-person visits to any houses they want to see. This might also involve arranging a survey.
What happens after action?
The highest bidder for a house will exchange contracts and pay a deposit for the property on the auction day.
The deposit is usually 10%, though this sometimes varies.
Most auction houses also have an admin fee for facilitating the sale. This is usually several hundred pounds. And many also charge a percentage of the sale.
How long does the house auction process take?
The average legally binding sale at auction is within 8 to 12 weeks.
This timeframe is measured as follows:
- The first two weeks will involve preparation: signing up, receiving the legal pack, and listing the property.
- The following six weeks will involve marketing the house. Potential bidders will arrange surveys and take a look around. The auction date and time will then be set.
- Auction day. The exchange of contracts and deposit occurs on the day.
- Four more weeks might pass before the full funds are transferred.
How long does auction day take?
An auction house will sell properties for up to 6 hours on any given day.
The most efficient auctioneers will get through around 20 items per hour. This suggests that each item takes 3 minutes of bidding to sell.
However, remember achieving average time is not guaranteed. After all, each property and each bidder is different.
And, of course, just as on the open market, sales are not guaranteed at auction houses either.
Can sellers peed up a house auction?
No, sellers can’t speed up a house auction.
On bidding day, the time it takes to sell your property is largely out of your hands.
However, they can improve the likelihood of receiving bids and completing a sale. The following areas should be considered.
1. Pricing
Setting a suitable opening figure is key to bringing several bidders into contention. But everything else is largely determined in the weeks before.
2. Marketing
You also need to market your property well. Ask the auction house how they intend to promote it.
You could supplement this by doing your own marketing. Two examples are:
- Listing the house on Rightmove, with details of the auction
- Putting a sign outside your property
- Create engaging posts on social media platforms like Facebook, Instagram, or Twitter, highlighting the property’s unique features and the auction details
- Place ads in local newspapers or online classifieds
3. Selecting the right auction company
Your selection of an auction company is equally important. Some organisations are more efficient than others. You should research:
- How often they sell properties
- Whether houses have sold quickly in the past
- The average number of bidders on auction day
- Responsiveness to your queries.
4. Choosing a good solicitor
You should choose a great solicitor to support you with the auction.
Ideally, hire this professional when you first list your house on the market. It ensures that they are ready to go when the day arrives.
Furthermore, you might receive some early offers on the house, which you may wish to proceed with.
5. Being transparent with potential buyers
It’s best to be transparent about any issues with your house. Finding something that you didn’t reveal can slow everything down.
Bidders prefer sellers who are honest about their property’s flaws. Just make sure you price your opening bid correctly.
When do I receive the money from a house auction?
A 10% deposit is made on auction day. The bidder then usually has 28 days to pay the remainder of the sum.
This timeframe can vary based on the auction house, so check with them to clarify the terms.
Is a house auction faster than a sell house fast company?
A genuine sell house fast company is usually quicker than a property auction.
They have all the funds needed in-house to buy your property within 7 days.
By contrast, from start to finish, an auction house tends to take between 8 to 12 weeks.
You should contact a cash buying company directly (such as We Buy Any Home) if you need a quote on how fast they can purchase your property.
