A property that was agreed at auction for £96,000 has just been sold for £116,000. Auctions can be a good way of selling property, especially where they are in need of repairs and unlikely to be mortgageable, and where the vendor wants a quick, hassle free sale. Almost all property auctions will be open to cash buyers only, who usually have to complete within 30 days. The buyer usually pays the fee, but of course savvy buyers will deduct this from the property price anyway, so it is not really a saving to the vendor. Vendors should also check what that fee is, in some cases it is much more than an agent would charge.

This case involved a property in County Durham which we had been managing and the owners decided to sell. Valuations from local agents were around £115,000 but they decided to auction it instead. it only made £96,000 at auction. Due to an unforeseen delay, the buyer refused to complete, and the auction house unreasonably refused to re-list the property. Despite this "in limbo" situation, the auction house told the vendors that if they took their business elsewhere, they would be stung for a £6,000 withdrawal fee. We got involved to help the vendors and had it listed with a local agent. The property has just been sold for £116,000 and even deducting the fee for the agent, that is significantly more than the auction price. The auction house have wisely decided to back down from their unreasonable demand, so the vendors had nothing to pay them. 

Even if your property is un-mortgageable, an agent can still market and sell it for you. Plus, if you are selling through us here at Key One Property, we have a sale agreement process which involves taking a bond, which can be non-refundable if the buyer withdraws, similar to an auction. If you have such a property to sell, get in touch for a chat. The good news is that our sale fee is just 0.5% inc VAT*, half of what many other agents charge. 

*subject to listing cost, min fee, t&cs.