What happens if property doesnt sell at auction

I t can seem counter-intuitive, but a low guide price will ultimately help achieve a higher final sale price. High street retailers use the same tactic to tempt shoppers into their stores.

Commission is only due for payment upon successful sale no sale, no fee. Read more about the costs for selling at auction. If bidding fails to reach the reserve price on auction day, the auctioneer will try to secure a sale as soon as possible after the auction. In some cases that might be within a few minutes of bidding.

The auctioneer will usually have an exclusivity period written into their terms that allow them to continue marketing the property for a month or so after the auction. The post-auction marketing can often be very successful, because some prospective buyers just need a bit more time to carry out their research and arrange financing.

The short answer is no. However, an estate agent who risks losing their commission might try to convince you otherwise. If in any doubt, just be reassured that if you later decide to sell by private treaty method of sale, an estate agent will tell prospective buyers whatever it takes to keep a buyer interested!

Auctioneers are very prompt at removing their Rightmove and Zoopla listings if they need to. They only want to be seen for their successes, not for the properties they failed to sell! Rather than re-entering the property into a third or fourth auction with an even lower reserve price, it might just be that a property is better suited to a private treaty estate agency sale. There are a few things to consider when exiting your auction agreement and engaging the services of an estate agent.

As with most property sale agreements, when you appoint the services of an auctioneer or an estate agent, the costs incurred and the work carried out by the agent in generating interest in the property needs to be rewarded. So a typical auction agreement will include a clause whereby the auctioneer will be due a commission even if the property sells a month sometimes longer after auction day. And it might be necessary for the seller to serve notice in writing to the auctioneer in order to be completely free of any ties.

Need more help? Auction House continues to respond to the impact of Coronavirus and is following the changing advice of government and medical organisations in its activities and operations. This includes home working for many in our teams, and social distancing when we are in our offices or visiting properties. We are continuing to do auction appraisals, inspecting and listing properties, marketing them for sale by auction and undertaking viewings, subject to Covid-safe access being available.

Where possible we have created video tours of the lots we are selling and encourage virtual viewings of these. Please contact our office if you wish to make an appointment for a physical viewing — we will endeavour to assist but this will not be possible on all properties. In addition we would ask you to comply with NHS self-isolation advice if you or someone you live with has symptoms of Coronavirus — click the link below for the latest NHS Guidelines.

Since then our auctions have been successfully run using Online Bidding, or as a Livestream service with Remote Bidding.

Sometimes, you have a group of bidders who may be hesitant to open the auction or keep it going after a certain point. When no bidding takes place, a vendor bid is made by the auctioneer and this can be all that is required to set the wheels into motion. This will usually take place behind closed doors and can possibly take several days and in some cases, with no end result. For the seller, they may have set their reserve too high and as a result, they will have to adjust their price expectations in order to close a sale.

Should a result not be achieved, they can choose to put their property back on the market and sell the property via a private treaty, perhaps with a different agent.

Vendors should not be disheartened as a private treaty may ultimately prove to be the best method to sell their home. Some vendors may not want to put their property back on the market and are more open to negotiations.

A failed auction is not always a disaster as long as both vendor and buyers are prepared to negotiate. Contact your local Mortgage Choice broker today who can assist with the process. It is not mandatory to have a home loan pre-approval in order to bid at an auction but it is a highly risky strategy.