How to sell your property with 0% agency fees
Sell with speed, security & certainty of completion for no less than the price you want
Have you experienced the frustration of a sale/onward purchase falling through?
Has the lack of certainty or lengthy sale process cost you your dream home?
Are you worried how long the sale transaction could take if your buyer has a chain?
Have you had the frustration of your buyer or a buyer in the chain withdrawing from the sale process?
We have a solution that leaves the above worries to one side and ticks all the boxes:
- The property wonât sell for less than the pre-agreed reserve price
- Plan your move more easily with fixed exchange & completion within 56 days
- Pricing strategy to encourage maximum interest & competitive bidding
- 0% agency Fees
- Auction pack fee only due if property sells (ÂŁ395 - ÂŁ445 inc. VAT)
- Security of sale as the buyers pay a non-refundable deposit or reservation fee
The Modern Method of Auction can be a good alternative to Private Treaty if you are a motivated seller as it offers speed, security and the achievement of a fair selling price. The property will not sell for less than an amount pre-agreed with you but the marketing strategy used is designed to drive interest, which can help encourage competitive bidding and is in turn more likely to drive up the purchase price.
How does it work?
Step 1: Choose between Modern Method Auction or Traditional Method
Modern method auction (also known as the âConditionalâ method)
This offers the speed, transparency & security of a traditional auction but with more flexible timescales of up to 56 days to complete. This enables more open market buyers to purchase with a mortgage rather than restricting to investors only. As the buyer commits to purchase through a non-refundable reservation fee & agreement there is more security through the process.
Traditional method of auction (also known as the âUnconditionalâ method)
This is typically more suited to vacant properties or those not suitable for a mortgage as they donât meet lender requirements. Therefore, market is limited to only cash and investment buyers. This method gives complete security as the buyer pays a 10% deposit at the end of the auction alongside an exchange of contracts with up to 28 days to complete.
Step 2: Agree a pricing strategy
We will discuss and agree a Reserve Price- this is not disclosed to the buyers and the property will not sell for any less than this amount. We will also agree a starting bid, which tends to be lower than actual market value to generate maximum interest and competition for the property.
Step 3: Preparation of marketing material and Auction pack
You will need to complete a property questionnaire to facilitate the preparation of an auction pack. This provides all the information the buyer needs to make a decision, including:
- local authority search
- Property information questionnaire
- Water & drainage search
- Reservation form or contract
- Title Plan & register
- General terms & conditions of sale plus any special conditions
- Fixtures & fittings form
The auction pack costs ÂŁ395 (incl. VAT) if you also go on to use Medway Law conveyancing, (highly recommended by the auctioneers) services for the sale of the property. They specialise in auction packs and are experienced at delivering them within 14-21 days, giving advice along the way of any issues which could be resolved ahead of the auction. Alternatively, if you choose your own conveyancing provider, the cost of the auction pack is ÂŁ445 + VAT. This is payable to the auction house and only due if the property sells. There are 0% agency fees for the seller to pay as they are payable by the successful purchaser.
Sandersons will prepare all marketing particulars as we would for a private treaty sale with professional photographs by our in house photographer, floor plan (with room dimensions) and can arrange an Energy Performance Certificate (if required).
Step 4: Pre-auction marketing
Once you have approved our marketing particulars, the property will be listed for sale on our website and ALL the major property portals. This enables us to generate maximum interest, exposure and viewings while the auction pack is being prepared. Because of the level of interest in the properties (based on the pricing strategy mentioned above) and often shorter timeframe for marketing, block viewings at set times are more common with this method of selling. They also create a heightened sense of competition
Following a viewing, all prospective buyers will be contacted by the auction team to discuss feedback, interest in bidding, registration on the bidding platform and answer any queries relating to the process.
Step 5: The auction can begin
Once the auction pack is completed, the property can go to auction and bidding can begin. Auctions can take place in-room (a set date and time) or online (with an agreed start/end)/
Step 6: Bidding
Interested parties can bid online or over the phone via the auction portal. The online system allows buyers to view the current bid, the amount of bidders and a live countdown to the end of the auction. They can enter your bids manually or use the âMaximum Biddingâ function, allowing buyers to set the minimum and maximum price youâre willing to spend and they will bid on your behalf.
Please note, unlike other online auctions we are familiar with such as eBay, there needs to be a clear 2 minutes with no bids at the end of the auction before it is closed. E.g. if you were to place a bid in the last minute of the auction, 2 minutes would be added to the clock and that keeps going until there is a full 2 minute period with no further bids. Therefore, if buyers leave it until the last minute to bid it won't necessarily play to their advantage.
Step 7: Property sold!
Modern Method - The successful buyer will be required to pay a Reservation Fee/Deposit and sign a Reservation Agreement. The property is then reserved exclusively to them and they are required to unconditionally exchange contracts and complete the transaction within 56 days.
Traditional Method - Contracts are exchanged immediately, with completion taking place within the next 28 days. Complete security is provided but this method is more suited to cash investors. The auction team will require a 10% deposit paid on a non refundable basis and in some cases a reservation fee as well.
Step 8- Next steps through to completion
The buyer will need to instruct a solicitor to act on their behalf, we can support them with recommending companies who specialise in these types of transactions. The sales file will be passed to the auction Sales Progression Team who will keep all parties up to speed and help your sale progress within the required timescales.
The reservation fee is non-refundable and paid in addition to the agreed purchase price and is later used to cover the sellerâs fees. The Reservation Deposit is paid in the instances that the seller agrees to pay the fees. It is non-refundable and forms part of the agreed purchase price.
If the reserve price is not met during the auction, the auction team will still communicate with the seller and any interested parties to see if a sale can still be achieved.
If you would like to discuss this approach to selling please get in touch with us.
In the meantime, we can also offer either an instant property valuation or a more detailed valuation in 24-48 hours using our online tool that enables you to upload images of the property for a more accurate and personalised valuation.
