- When you choose to work with us, we may advise that our auction route will get your the best value for your property
- It all depends on the property, and we’ll talk you through all the details
- Like our normal listing service, this is fast, free and fully managed
It is often assumed that a house is only eligible for auction if it has been repossessed or has been neglected. However, this is a myth. No matter how big or small your home is, or how luxury or dated the interior is, you can successfully sell your home at auction.
Typically, when you think of property auctions you might envisage catalogues of houses and an auctioneer rattling off values to a room of people before the hammer falls. However, as technology has advanced and more services move online, auctions have followed suit, with online home auctions becoming more popular.
How can I sell my house at auction online?
There are a number of online services that will help you auction your home online. They will work with you to agree an undisclosed reserve price and a guide price before listing your property for auction. You can either get your house valued by a traditional estate agent or research properties in your area to get an idea of how much your property is worth, so you know what your reserve price should be.
You will need to instruct a solicitor to arrange for a legal pack of the relevant property documents to be put together for the sale. Some auction houses may be able to recommend legal partners to do this. SOLD.CO.UK can organise all the legal matters for the property sale on your behalf and will even cover the fees.
Once the property is listed, bids will be made by potential buyers. You can watch the bids come in as they are made online. If the reserve price is met, the house is marked as sold and the winner must immediately pay a deposit. The remaining amount will then be paid within a set timeframe.
What is an “undisclosed reserve price”?
The reserve price is the minimum sale price you’re happy to accept for your property – if the offers do not meet or beat this amount, you do not need to sell. The undisclosed reserve price is not advertised to bidders, so the bidding is not biased towards a certain figure – the bidders will be working purely on what they are prepared to pay for the property, which usually means more bids and higher offers.
Most auctions state that the reserve price must be within 10% of the guide price (the starting price that is first displayed in the auction). At SOLD.CO.UK, we recommend setting this guide price below full market value – it generates more interest from bidders, gets them excited and placing live bids against each other from an early stage. In over 95% of the hundreds of online property auctions we have run, we have seen this drive the final sale price far higher than if we had started with a lower guide price.
Pros and cons of selling a property by auction online
In order to purchase a property at auction, bidders must have their finances in order. Once a property has sold it is a legal obligation for the auction winner to pay a set percentage deposit immediately, usually around 10% of the sale price. The remaining sum will need to be settled within a certain timeframe, typically 28 days but this will be dictated by the auctioneer. For this reason, there is less likely to be any chance of buyers pulling out as they have already showed their commitment and intent by securing the property with the deposit. If a sale does fall through the seller gets to keep the deposit.
Online home auctions can be useful if you want to sell your house fast, for example, if you have inherited a property. As long as you receive a bid during the auction, you will know what date the sale will complete by, as long as the buyer doesn’t pull out. It is usually much quicker to sell via an auction than via traditional estate agents where sales can sometimes take months.
You may benefit from online house auctions if you have a home that requires some TLC and you’re unable to renovate it prior to selling. These types of homes can take a long time to sell on the open market, but buyers using property auctions tend to be more open to redeveloping a home so you’re more likely to secure a sale.
Online property auctions mean that, unlike traditional auctions, you will not have to pay any fees for room hire or catalogue printing. It’s also easy to change the sale price or reserve price online if needed.
Selling your house at auction can remove the hassle of using a traditional estate agent and you will not have to pay the high fees that estate agents charge – although some auction houses will still charge fees. If you use SOLD.CO.UK to sell your house at auction, we completely take the reins of the entire selling process, meaning zero stress for you. We don’t charge any fees so you can auction your home for free.
Auctioning a property does not guarantee a sale. If a buyer pulls out, you may have to pay again to re-advertise the property – the only bonus being you will have the deposit from the previous buyers to cover this.
Typically, the cost of selling a house at auction can vary between £2,000 and £3,000. These costs will be settled before your home even goes under the hammer, with a fee of around £1,000 upfront and a further £2,000 for a legal pack. You should also expect to hand over 2.5% + VAT on any deposit received. Therefore, if you received a 10% deposit on a property sold at £150,000, £450 would go to the auctioneers. However, if you use SOLD.CO.UK for your property auction, you will not have to pay any fees at any point.
Your home might not fetch the price you wish at auction. Many sellers will overvalue your home to get you excited and more likely to choose them to sell it. However, SOLD.CO.UK will never overvalue your home and will only ever give you a realistic value of your property.
Can I sell my house on eBay?
A lot of people automatically assume that the only way to sell your home online via an auction format is via eBay. Certainly, there are many people turning to the e-commerce powerhouse to auction off their homes. However, it is often second properties and holiday homes that grace the listings pages.
There are no rules on the properties you can sell on eBay and there has been a surge in the number of people in the UK auctioning their main residence in this way. To set up a listing you will have to pay a one-off £35 eBay charge, a manageable fee compared to estate agent commission. However, if your home sells PayPal will also charge you 3.4% + a 20p flat rate charge on the final auction price. Therefore, if you sold your home for £300,000, you’d take home £289,764.80 and spend £10,235.20 in fees. You would also need to factor in solicitor costs, as everything will need to be legally binding.
With estate agent commission falling between 0.75% and 3.0%+VAT, you could actually end up paying more by auctioning your home via eBay and definitely more than other online property auctions.
Online house auctions FAQs
With SOLD.CO.UK it does not cost you a penny to sell your house via auction with us. We even cover your legal fees!
An ‘undisclosed’ reserve price means a reserve price that is not advertised to bidders, meaning that the bidding is not biased towards a certain figure – the bidders will be working purely on what they are prepared to pay for the property.
SOLD.CO.UK will run a 30-day online auction for your property. If the property meets and/or exceeds the undisclosed reserve price during bidding, your property will be sold. However, if you require a route to sale that suits your own timeframes, our Custom Purchase offering may suit your needs better.
SOLD.CO.UK will never list your property for auction without agreeing an undisclosed reserve price with you. We will work with you to set a realistic reserve price that you are 100% happy with.
We will auction your property via our own platform, as well as Rightmove Auction. For extra exposure, your home will also be advertised to our database of fully qualified buyers.
Property auctions are not the only way to sell a property online. However, they have benefits that are different to other methods. At SOLD.CO.UK we aim to have your home sold in 30 days, meaning a quicker sale than a high street agent. Furthermore, contracts are exchanged once the hammer falls, meaning the buyer cannot pull out of the sale or renegotiate the price.
Auction my house online
At SOLD.CO.UK, we offer customers a free 30-day online property auction of their home. Like our normal property listings, this is completely free, includes all legal costs and is fully managed by our expert team.
SOLD.CO.UK will list the property with an undisclosed reserve price which is decided with the customer beforehand. We will never list your home unless you are 100% happy with the reserve price. As well as listing the property in a 30-day auction format and on Rightmove Auction, we also advertise the house to our database of qualified cash buyers for maximum exposure.
If you are interested in selling your house at auction, get in touch with SOLD.CO.UK today. We know that selling a property can be stressful, so you can take the hassle out of the process by letting us manage the entire sale for you. Talk to our friendly, expert team on 0800 566 8490 or secure an online house valuation now.
Why should I choose SOLD.CO.UK?
- We offer a range of services, with a tailored approach to match your needs
- You’re able to move between these services whenever needed
- All are totally fee free, and we pay your legal costs
- We never overvalue nor over-promise
- You only sign up for 30 days, and if we haven’t sold your property by then you are free to walk away