Property auction in Hull

Property auction in Hull 

Property auction in Hull — we explain how it works and the pros and cons in our latest blog. 

 

Who tends to sell their house at a property auction in Hull? 

Anyone can sell their home at auction (Hull or elsewhere in the UK) but this route tends to be most popular amongst those either looking for a fast house sale or those that own a property that will be difficult to sell on the open market to traditional buyers (for example if it’s dilapidated, has known issues like japanese knotweed, or has tenants occupying it). 

 

Why do people want to sell their house fast?  

The list is endless but here are some common reasons why people turn to property auction if they want/need to sell their home quickly: 

 

What are the benefits of auction for sellers? 

  • Fast sale — the process is quick (but it’s not a guaranteed sale). Here are the main steps:

    • Auction appraisal — you need to choose which auction that you want to sell your property at. Go for one that specialises in the type of property that you’re looking to sell so that you attract the right buyer and therefore have more chance of success. Once you’ve made the decision, then you’ll need an auction appraisal to set the value of your property and agree on a reserve price.
    • Instruction — if you’re happy to move forwards, then you’ll be asked to sign terms and conditions ahead of the auction.
    • Legal — you then need to instruct a solicitor to pull together all the legal documentation required for a sale (title deeds etc).
    • Marketing — with terms of business signed, the auction company you’ve chosen will start to market your property to generate as much interest as possible ahead of D-day.
    • Auction day — It’s a gamble on the night, with the highest bidder winning. Your property will either sell or it won’t for a price that you’re happy with or not. If it does sell then the buyer will pay a non-refundable deposit to secure the property with the remaining balance usually due within a month.
    • Completion — it takes a couple of weeks for contracts to be exchanged. The auction house will usually liaise directly with your solicitor.
  • Any property goes  — property auctions in Hull (and across the UK) often attract investors looking for a deal; they’re ultimately looking to buy a property with ‘potential’ cheaply, refurbish it, and sell on at a profit. That means that auction tends to attract properties that don’t sell typically well on the open market; for example, those that need a lot of work doing or those with known issues.

 

What are the downsides of auctions for sellers? 

  • It’s not a guaranteed sale
  • Only expect around 70-80% of market value
  • There are high selling costs

    • Selling your home at auction is not cheap. It’s actually one of the most expensive ways to sell your home. Here’s what you need to consider:

      • Auctioneers fees — usually around 2.5% of the sale price. You’ll be liable to pay this whether your property sells or not. Check with the particular auction house that they don’t have additional advertising fees too that you may need to consider.
      • Solicitors fees part 1 — you need a legal pack to be able to sell at auction. Costs will be somewhere between £350-£600.
      • Solicitors fees part 2 if your property sells at auction, then you’ll need to pay solicitor fees for the conveyancing. Costs range depending on who you use but expect somewhere between £500 and £1,800.
      • Deposit — The buyer has to pay a non-refundable deposit on top of the agreed sale price. So while vendors don’t directly get charged, this will be factored into the price that you’ll be offered.

 

Are there other quick sale options? 

Yes – we’ve ranked fast house sale options here for you in a recent blog.

Your best option for a fast, guaranteed sale is genuine cash buying companies. There are no selling fees, they’ll buy as seen, they’ll usually cover your legal costs, and you’ll get around 85-90% of market value. 

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