In recent years, increased mobility and growing rates of home ownership have meant that the ever-larger number of people nowadays inherit properties from relatives who live distances away. Similarly, many buy-to-let properties have been purchased in areas with a large student population, miles away from where the original owners live.
In such cases, when it comes to selling the property, it is often difficult for the usual process of showing the property to prospective purchasers to be carried out by the owner.
In such circumstances, it is quite common for a property to be sold at auction. If you are considering selling a property by this method, we have highlighted some steps you can take to ensure your sale goes smoothly.
Well before the auction is planned, make sure you collate all the necessary documentation such as the original title deeds and any other relevant information. You should make a list of the information a prospective buyer will find useful, such as the age of the central heating, wiring and include any guarantees.
The reserve price should be set, this is the lowest price you will accept for the property. If the reserve is not met at auction, the property will not be sold. The reserve price should therefore be reasonably as if the property does not sell, there will still be costs to meet for the marketing of the property and related legal work.
The completion date should be set. The contract to buy and sell is created when the auctioneer’s hammer falls and the deposit is payable immediately, with the completion a few weeks later.
You should suss a plan B. In the present market, property is becoming more difficult to sell, so do not assume that the property will inevitably sell at auction as it may not. Make sure, that you are prepared for the possibility that after the auction, the property will still be yours. Vacant properties do qualify for rate relief, but other costs, such as insurance, may rise.
We can assist you with all legal matters relating to buying and selling property. Please contact us today on 01536 276300 or email firstname.lastname@example.org.