Selling at auction
Benefits vs. Risks
What are the benefits for me?
- The possibility of obtaining a higher price and an earlier sale.
- A greater certainty of selling - 60-70% on average.
- A predictable time scales so you can plan ahead with confidence.
- A much quicker sale from first marketing to completion - average time about 60 days.
What are the other benefits of selling by auction?
- We remove the risk of 'fall throughs' as we do not agree sales 'subject to contract'.
- We minimise the risk of buyers changing their mind, as the process is much quicker.
- When we sell before or after the auction the transaction is always immediate or very quick.
- We publicise your property over a much wider area and to far more potential buyers.
What are the risks of selling by auction?
- A wasted entry fee if we fail to sell.
- A wasted bill from your solicitor for preparing the legal pack.
- If sold the risk of a deposit cheque bouncing, although this is a very rare occurrence.
When to auction
Where and when do you hold auction sales
- We hold 8 sales a year all of which take place at the Lancashire County Cricket Club, Old Trafford.
How and when do I enter a property into an auction?
- We offer a free, no obligation appraisal to identify suitable properties and their worth.
What do I do next?
- Call the auction office to obtain a free auction appraisal - 0161 443 4740
What do I need to do?
- Once all your queries are answered, agree a guide price and a provisional reserve with us
- Return the auction terms of business form duly signed, along with the entryfee.
- Instruct your solicitor to prepare the legal documentation pack.
The auction office will then commence marketing your property.
Marketing
How do you advertise the property?
- We erect an auction for sale board outside the property to attract passers by.
- We print approximately 1,500 catalogues each auction, which are available online, by post or to collect from one of our Edward Mellor branches.
- Separate branch advertising is also available if previously on the market with them.
- The Auction office place advertisements in local and regional newspapers.
- All our lots are listed on at least two websites, and links are sent to 14,000 genuine enquirers to alert them about each new catalogue.
Who gets the auction catalogue?
- About one quarter of catalogues are distributed to our mailing list.
- A selection is distributed throughout our branches.
- The rest are posted out to applicants that request one off catalogues.
- The catalogue is also available for download from our website.
Auction vs. Conventional
How is auction different from selling normally?
- There is no subject to contract period. Your property goes from fully available to sold.
- At the auction on the fall of the hammer, contracts exchange.
- Completion is usually 28 days after the auction but you choose the period.
- Your solicitor supplies us with a legal pack in order to sell the property.
- We quote a guide (not asking) price.
Costs
What does Edward Mellor charge me to sell by auction?
- An Entry Fee is payable, whether or not we are successful.
- A commission percentage is payable on the sale price.
- A scale of charges is available on request.
What happens if my property doesn't sell?
- Your property can be re-entered into a subsequent auction at a reduced entryfee.
Additional Queries
What are the guide price and reserve price?
- The guide price is the figure we publish to attract potential buyers.
- The guide price is agreed at the offset and is a figure both yourself and valuer are happy with.
- The reserve price is the minimum for which we can sell and it is not disclosed to the public.
- You set the reserve price with guidance from the auction team.
Can my property be sold prior to the auction date?
- We often receive offers prior to auction from interested buyers.
- We have a legal obligation to put all offers to you, unless you notify us otherwise in writing.
- We will write to you with any offers received.
- If you accept an offer prior to auction, we will still fully market your property until exchange takes place.
Can I instruct another agent as well as Edward Mellor?
- Our terms of business are strictly on a sole selling rights basis.
- Any other agent acting must be dis-instructed before you instruct us.
- A joint agency is possible but at a higher commission rate.
- If a joint agency has not been agreed from the outset then sole selling rights will apply.
What happens at the auction?
- Once your reserve price has been reached and or passed, an exchange of contracts is achieved on the fall of the auctioneer's gavel.
- At exchange we will take a 10% deposit on your behalf with the balance due upon completion.
