Selling a property through auction can also be highly profitable for sellers. A property may sell for a much higher price than if it were sold on the open property market. This is particularly true if there is more than one interested bidder and competing demand between potential purchasers.
To avoid making a loss on a sale, we recommend instructing the auction house to set a reserve price for your property. This will ensure the property will not sell for less than the minimum value acceptable to you and will serve to advise potential buyers of the starting value on which further bids can be made.
Sellers at auction should bear in mind the fees associated with selling a property at auction. The auction house will charge a fee for listing the property, which must be paid irrespective of whether the property is sold at auction. In some cases, and depending on the auctioneer’s terms, these costs are met by the purchaser.
Property is usually sold at auction for a specific purpose, such as the seller needing a quick sale. In other instances, the property may be in poor condition and require extensive renovation work, which can appeal to buyers looking for a “fixer-upper”. Sometimes, the property will be unusual or atypical in terms of character or features or viewed as problematic in terms of valuation. An auction may be seen as the best means of establishing value and securing a sale for these types of properties.
Buyers looking to purchase property at auction should always seek legal advice before submitting a bid. If your bid at auction is accepted, you will receive the title to the property in whatever condition it may be in, without recourse to the seller if, for example, the property is structurally unsound. To avoid such a situation arising, our solicitors can carry out a title check, among other legal investigations, on any potential property of interest listed by an auction house. We can advise you of the expected interest in a property, as well as the likely value.
Our team of expert auction conveyancing solicitors will ensure that you are well informed and fully prepared, prior to attending an auction and making a bid.
We will review all important conveyancing documents on your behalf, provided as part of an “auction pack”, and advise you of any potential issues or concerns. If you are selling your property at auction, we can assist in preparing your property’s auction pack in advance of a sale.
Our auction conveyancing solicitors understand that time is of the essence when purchasing or selling a property at auction. We provide quick and efficient legal advice to ensure your success.
Aside from helping with auction property in Scotland, our property team offers a full range of services, whether you are buying or selling property.
Contact the Jones Whyte property team today via our online form, and check out our blog on ‘How To Choose The Right Conveyancing Solicitor ‘