Isn’t it always enticing to sell at a maximum price while paying a minimum sales fee? When selling by auction make sure you know ALL the facts before instructing an auctioneer or you may be left disappointed.
Welcome to Connect UK’s Auction Academy – Here to answer all your property auction questions.
Similar to private treaty sales, auctioneers will charge a specified percentage of the sale which will become the company’s sales fee. This percentage will range anywhere between 1-4%, dependant on the company and their location within the UK.
But… although we don’t want to… we HAVE to consider the ‘what if’ as not every single property or land will sell through auction, first time.
So, let’s explore what happens if a lot doesn’t sell, just in case.
You’ve already paid your sales fee… do you have to repay to enter the property into the next auction? Of course, this isn’t ideal as you’re at a financial loss.
Does the company you’re looking to instruct, offer a ‘no sale no fee’ option? If they do, great. You don’t pay unless the property sells. Perfect. If not, this is going to cause you yet another financial outlay while bringing you the stress and uncertainty which could have been avoided.
Remember, this sales fee is separate to an auction entry fee. So be sure to explore those too.
Knowledge is everything and doing your due diligence is key. But we all have to start somewhere right? Don’t be afraid to ask questions, as the saying goes, no question is a stupid question. Any auction company you choose to instruct should be upfront and transparent.
Check out our other videos on Top Tips when thinking of selling and what type of properties sell at auction.
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