In addition to our direct land, commercial property and site buying service, we can also offer our clients the option to sell via a state-of-the-art auction platform.
Whilst slower than a direct (private) sale, this service frequently works well for sellers looking to position their property in a competitive open market bidding environment.
As professional buyers across the UK since 2003, we appreciate that certain types of property sales are more suited to auction.
Land, commercial, mixed-use and other ‘niche’ properties often fall within this category and we regularly help sellers achieve excellent results.
Indeed, relative to a private treaty (commercial / land estate agency), an auction sale is more likely to result in a better price alongside a greater level of certainty.
We would love to chat about how we can attract you a healthy number of eager prospective buyers for your property, site or land plot. Please fill our contact form or call freephone 0800 044 3810 (lines are open 24/7).
Below we’ve outlined the essential stages of the auction process to ensure we get our clients great results every time.
We will start by having a telephone conversation with regard to your property / land / development site and overall objectives.
Some of the information it would be great to receive includes:
In essence, the more you could supply the better.
The team will then engage in a detailed due diligence process, adopting the same appraisal methodology applied to our own building / land / development site purchases.
We strictly observe Royal Institute of Chartered Surveyors (RICS) guidance, HM Land Registry property valuation data and the latest auction market news. This means that our findings are demonstrably aligned with the highest industry standards.
We typically also visit the property or site which will facilitate a more accurate valuation (by seeing the condition and confirming measurements, for example). However, this is not always necessary and we would completely understand if you would prefer to keep the sale confidential at this stage.
A member of the team will be in touch to discuss our findings alongside our suggested guide and reserve price recommendations.
These figures are based on the type of property / land / development site being sold, buyer’s appetite, comparable evidence, overall market conditions amongst several other factors. We will go through our findings and pricing logic with you in detail.
Appreciating the extra complications involved in this type of transaction, we’ll typically roll out an initial marketing period of 2-4 weeks. Over the last 6 days, we’ll open the property up for competitive bidding via our online auction platform.
In most cases, we’ll run the auction unconditionally – taking a non-refundable reservation once the bid is won. The successful buyer will immediately exchange contracts when the hammer falls and pay a 10% deposit which will be transferred into the solicitor’s account (via our own PropertyMark approved client account).
We’ll then extend the overall sale completion period – to either 28 or 56 days – so that you do not lose out on getting complete security of sale. See our complete guide to auction sales here.
Offering a fully comprehensive service, you can rest assured we’ll get your building or plot listed within very short timeframes, guarantee excellent exposure and get a great price!
We can visit the property, plot of land or site 7 days a week at a time convenient for you. However, this is not always necessary and we can completely handle things remotely should you prefer.
Sometimes, especially if the legal pack is already prepared, it makes sense for us to take photos and produce a floorplan at the same time. We can also organise the Energy Performance Certificate (EPC) if necessary.
This means we can get your property listed on all the portals quickly (within days of instruction should you so desire).
You are under no obligation to book a Royal Institute of Chartered Surveyors (RICS) valuation / report.
It can, however, sometimes encourage more potential bidders as more feel comfortable with proceeding and things are being kept transparent.
Once you are happy with everything, we will send you our auction sales agreement via email.
This needs to be ‘e-signed’ by all owners for us to be able to move forward with the marketing of your property.
We’ll require a set-up fee to proceed with the auction process. We charge this relatively low fee as there is a lot of work behind the scenes.
Note that, for an extra cost, you can opt to pay this fee upon completion.
You’ll also receive a copy of the terms and conditions (these are in line with 4th Edition of the ‘Common Auction Conditions’ reproduced with the consent of the Royal Institute of Chartered Surveyors).
We would also encourage you to read our procedural and legal guides which run through all the necessary procedures that will be followed when selling at auction.
We are, of course, completely available to answer any of your questions.
We rarely suggest moving forward with any kind of auction sale without a legal pack in place.
The solicitor will verify and provide us all the relevant details (highlighted above) to upload to our auction platform. These details can then be downloaded by the buyer(s) / buying entity.
Omitting this key information often means that buyers will feel less confident about the purchase and bid lower (or not at all).
PS Development Services have conveyancing partners we can put you in touch with who offer competitive ‘pay now’ and ‘pay later’ options.
Please check out our propety auction sellers legal guide.
If this process was not undertaken during our initial viewing, we’ll get these organised with one of our professional partners (anywhere across the UK).
Please note there are no extra charges here (even for any Energy Performance Certificate required if you do not have an up-to-date version).
In order to ensure that we can market your property in the best possible way, we may also request other details during the photography session.
The key to getting the best result is making sure the right type of buyer will see your property.
We take pride in providing high-quality listings and your property will be published on all the major portals to draw in the maximum amount of attention (see where we advertise). You can be sure that this is what we do best!
Our auction team typically recommends marketing the property for 21 days before starting the bidding process. However, we are happy to adjust this timeframe as circumstances dictate.
We’re are available 7 days a week to host viewings.
In many cases, we run open days where we invite multiple buyers to view the property, land and/or site. This often serves to create a competitive environment when it comes to the bidding process.
Provided that you are comfortable with handing the keys /access over to us until completion, we are happy to take full control of this process to keep things completely hassle-free for you.
We will also make ourselves fully available to answer any questions relating to the property and can run second viewings when appropriate to do so.
By law, we are required to formally register potential buyers before allowing them to bid on our auction portal.
This requires us to undertake full identification and Anti-Money Laundering checks to ensure that there is nothing untoward.
Undertaking this process saves a lot of administrative inconvenience once the auction process concludes.
Prior to the bidding process, we will send all qualified buyers our operations guide, explanatory information and make ourselves fully available to answer any questions.
We typically allow a 6-day bidding period and will continually monitor progress and advise you accordingly. You will also be able to see bidding activity directly on the portal.
We will also advise you of any proxy bids – i.e. where buyers enter a maximum bid and we bid up to that amount on their behalf (similar to eBay).
There is no limit to the amount buyers can bid up to, we will be sending automated alerts when their bids have been beaten.
At the end of the bidding period, the virtual hammer will fall and the sale price is confirmed. You will be able to see the final price on our portal itself but we will be getting in touch to confirm things also.
We will also be communicating with the winning buyer to confirm the next steps, completing the Memorandum of Sale and moving things forward.
With all of our auctions, the buyer will be required to pay a non-refundable reservation fee of 2% + VAT to secure the property.
We usually take a pre-charge on all bidders debit/credit card and the money will be withdrawn from the winning bidder automatically.
This avoids any confusion at the close of the auction. Furthermore, this financially commits them to the sale and the terms and conditions of the auction contract.
One of the beauties of selling at auction is that, once the hammer has fallen, the chances of things falling through are slim to none.
In most auctions we run, the terms and conditions state that exchange of contracts happens at the fall of the virtual hammer. This means that the buyer (unless otherwise agreed) must pay a deposit of 10% and complete on the sale within 28 to 56 days.
Failure to do so could mean the loss of the reservation fee, deposit paid alongside other financial penalties and abortive costs.
Although much of the legal work is already completed pre-auction, there will be some final processes to undertake. You will also be sent legal documents to sign to finalise the sale.
Once the sale is complete, our auctions team will be completely at hand to organise key handovers and assist with any other issues that may emerge.
PS Development Services are very keen to build long-term strategic partners with land brokers and estate agencies with suitable auction stock.
We offer excellent referral fees and a full tracking process.
Please get in touch with us during office hours on 020 8226 6901 (or e-mail us at email@example.com).
Why use an auction to sell property, land or a development site?
Selling property, land or development sites has long been a popular way to achieve much more certainty compared to what’s possible via a private treaty sale.
The principal reason is security. Once the auction hammer falls, there’s very little chance of the sale collapsing and buyers stand to lose significant sums of money if they do not to proceed. The sale, therefore, is practically guaranteed. We regularly also see great prices, arguably higher than what would be the case with a standard open market sale.
Another reason is speed. Our own auctions for example, at the fall of the hammer, provide a 28 to 56-day completion time period. Whilst not as quick as our we buy any property service (7-day completions), the sale can be concluded much quicker than through a commercial estate agency.
How quickly can I sell through auction?
Our auction team is exceptionally quick at listing properties. Once we receive your instructions, we can typically turn around professional property listings within days.
However, many clients prefer to wait until the legal pack is ready prior to listing (which can take a few weeks). Others have this documentation already prepared.
Either way, we generally recommend a 3-week minimum marketing period. We will be completely at hand to deal with buyer enquiries, have a 24/7 freephone number and accompany bidders throughout the whole process.
Note that we often receive pre-auction offers which we always present to you. You are under no obligation to accept any price at this stage.
If we’re seeing the offers coming in at around the reserve price, our typical recommendation is to let potential buyers competitively bid to ensure you get the very best price.
What are the risks of selling at auction?
One of the principal risks is that the property does not sell. However, our auction team is highly experienced and will recommend guide and reserve prices that have the best chance of achieving optimum success.
For us, it makes little sense to overpricea property (to win business, for example) as both us as a company and you the client will almost certainly end up disappointed.
What are your auction fees?
Property Solvers Online Auctions charge 1.5% + VAT of the sale price (with a minimum of £2,000 + VAT), due on completion. Therefore, in the unlikely event that we do not achieve a successful sale at auction, you will not need to pay.
Please note that there is also a set-up fee of £499 + VAT which will need to be paid prior to us initiating the marketing process. However, should you wish to pay the set-up costs upon completion (alongside the sales fee), the charge will increase to £699 + VAT.
Do you offer auction joint ventures?
It’s something that we would not rule out.
Much will depend on the sale specifics and how the joint venture collaboration would work in practical and legal terms.
Please feel free to get in touch with us via our online form, emailing firstname.lastname@example.org or calling us on freephone 0800 044 3810 (lines are open 24/7).
Will I definitely sell at auction?
The chances of achieving a successful sale at auction are notably higher than selling through a commercial estate agency / brokerage.
It essentially comes down to accurately pricing your property, which we are experts in doing.
Running our own agency we often see that, once the sale is agreed, sellers are at mercy to the buyer’s whims and the risks of some kind of fall-out happening increase dramatically. Indeed, it’s an industry fact that 1 in 3 property sales falls through. This is often due to a lack of transparency when the sale is agreed upon.
Through auction, the aim is to create a competitive bidding environment through strategic pricing. Once a successful bid has been made, buyers effectively become financially committed to the sale.
These and other factors mean that silly buyer games and delays that often happen with estate agency sales are avoided.
Where will my property / land / development site be advertised for auction?
You can rest assured that your property will be marketed on the leading portals – including Rightmove, Zoopla, EG’s Property Link and many more (see where we advertise).
Working in the industry for almost 2 decades, we’re well connected with the UK’s property investment community (check out our popular investor’s blog). We also have a good-sized LinkedIn company page and manage LinkedIn’s largest property investor / developer’s group.
Furthermore, as part of the service, we’ll produce a high-quality brochure that will be distributed amongst active buyers alongside our various other social media channels.
Would it not be easier to sell directly to PS Development Services?
Yes, it would be.
Much would depend on your own expectations in terms of how quickly you want to sell and whether you are willing to bear with some of the inconveniences that come with an auction sale.
With auction sales, for example, there will be multiple viewings / open days. Many sellers we speak to prefer for the property not to be in the public domain.
Will my property sell for higher than the guide price?
Yes, this is entirely possible.
Our job here is to push the price as high as we can – however, we cannot guarantee that it will go beyond the guide.
Much will depend on how accurately it is priced and the level of demand. We are certain that, if you follow our guidance, we will get you an excellent result that will leave you with a smile on your face!
My property is already with an estate agent and not selling – can I swap it to auction?
Absolutely! Provided you are not tied into a contract, we would be happy to relist your property for auction.
Time and time again, we see estate agencies overvaluing properties to win business. We’ll provide our honest, professional opinion and advise on the best route to take in order for you to sell with the outcome you desire.
Can the buyer try and drop the price post-auction?
Also known as gazundering, the practice of dropping the price after the virtual hammer has fallen is not possible.
Even with the longer time period between exchange and completion, the sale price cannot be altered under any circumstances.
What happens if an auction buyer changes his/her mind?
In the very rare instances where this happens, it should be noted that once the virtual hammer falls, contracts are exchanged and the buyer usually pays a deposit of 10%.
If he/she was to then pull out, there is a serious risk of losing this deposit. There will also be legal abortive fees, penalties and we will not refund the 2% deposit paid.
Very Competitive Offers Excellent Referral Fees
Very Competitive Offers Excellent Referral Fees