If you are considering selling your commercial property through an auction rather than going for a conventional method of selling, then you have come to the right place. There are a bunch of conveyancing solicitors and remortgage solicitors in and around London that can help you sell your commercial property at an auction.
People often prefer selling at an auction as it is seen as a quicker route. It also provides more certainty to the seller as once it is sold off to a buyer in the auction, the successful bidder is legally bound to go ahead with the buying as there will be a binding contract in place.
A bunch of things to consider before selling at an auction
The following actions or steps must be taken with the auctioneer before you decide to sell your property at an auction:
- Check whether there are any hidden costs attached if you decide to sell through the auction house, like any promotional or advertising cost. It is important to check this kind of detail about the hidden costs because you might be liable to pay these costs even if the property doesn’t sell.
- Check if you are property is completely ready for any viewings before the final auction takes place.
- In case you start to receive offers even before the auction takes place, discuss this with the auctioneer in case you wish to accept or deny those offers, and see which deal is better suited for you.
- You must confirm the guide and reserve prices with the auctioneer. The Reserve price is the minimum amount that you are willing to accept for your property. All these details can be discussed with your property solicitors or conveyancing solicitors as well before you finalise anything with the auctioneers.
Types of business properties you can sell at an auction
There are a bunch of different commercial properties like offices, shopping centres, retail warehouses, high street shops, business parks, pubs, hotels and restaurants, and industrial units can be sold at an auction.
The owners of businesses that make use of the property, as well as own the property, can choose to sell their property through an auction if they wish to do so. But at the time of the auction, only the property must be sold and must include not the business. This will be explained to you in detail by your property solicitors or conveyancing solicitors in London.
Choosing an auctioneer for selling your property
At the time of choosing an auctioneer for selling your commercial property, the decision depends on the type of property you are selling, the tenancy or holding of the property, and the future potential of the property.
There are several auctioneers out there that deal specifically in the auction of commercial property. You can also ask your conveyancing solicitors or property solicitors for a reference and they will be able to get you in touch with the right auctioneers.
If your commercial property is part vacant or part residential then a general property auctioneer can be approached. Make sure the auctioneer has good knowledge of the local land and good connections in the market to help you get the best price and buyers. Remortgage solicitors can also be contacted.
Advantages of selling property at auction
- One of the best advantages of selling your commercial property via an auction is that the property will be sold quicker, compared to selling through traditional channels.
- Nowadays, more and more buyers, whether they are individuals or business owners, are looking to buy properties at an auction. So it is a growing market and you are likely to acquire a good price for your property.
- Auction is a good way of selling or getting rid of an unusual property that’s difficult to sell. Often attendees at auctions are able to see potential in an unusual property that other buyers would fail to notice.
- Selling property at an auction is a more transparent process compared to other ways of selling property. As soon as the gavel hits the desk, the property is deemed to be sold to the buyer and there’s hardly ever any risk of the deal falling through. While deals in traditional houses tend to make and break quite easily.
Risks of selling property at an auction
There is absolutely no guarantee as to whether your property will be able to acquire the price you have asked for. But still, it is often considered a safe bet for getting a good price for the commercial property.
There are online auctions taking place, which offer a longer time scale where buyers can take longer to complete a transaction. So a sale might take longer than usual. But it’s still probably going to be quicker than a conventional method of sale. These risks must be discussed with your property solicitors or conveyancing solicitors.
The cost of selling at an auction
To get your property listed, you will be charged a non-refundable auction entry fee. This could be taken as a percentage from the sale price of your property. In addition to this, there might be some hidden costs like advertising or promotional costs depending on which auctioneers you choose. Keep a tab on all these little charges incurred here and there to enlist and sell your commercial property at an auction.
If you are selling the property on behalf of somebody else, make sure the transfer of equity is done properly with the help of a lawyer. It is important you take a look at these kinds of details before enlisting your commercial property for an auction.
You must get in touch with good property solicitors or conveyancing solicitors who are well aware of all the rules and are able to guide you better. It’s even better if they are experienced in selling property at an auction. It won’t be a difficult task to find solicitors who have done that in the past. These tips will hopefully help you to at least get through the basics and get in touch with a good auctioneer and discuss all the important auction-related details with them confidently.