Hello and thank you for joining me again, I hope everyone is keeping safe and well as things return to normal. I know on a personal level I was delighted to be able to go for a swim last week. I might also have managed to sneak in a wee pint with a meal out as well, after the year we have had, why not, I think we have all earned a treat!
In this month’s blog I want to have a look at the cost for selling your home at auction. You will hopefully have seen we have recently decided to scrap our sellers fee, for a limited period only sellers no longer pay anything to us for selling their property. When a property sells it is the buyer who pays our fee. What does this mean to you though if you are thinking of selling your house at auction? Does £0 sellers fee mean you pay nothing? I have detailed below a few things that you will still need to do which will hopefully shed a bit light on this offer.
I spoke in a previous blog about the costs of getting your house ready for auction. You can check out April Blog for this in a bit more detail but remember this does not need to cost fortunes. A clean, de-clutter and tidy up of any communal areas go a long way without costing a lot of money.
So, your property is ready, you want it on the market, what is next? The first thing you need to do is instruct a Home Report if you do not have one already. If your property has been continually marketed however you just want to change agent, then the original home report is still valid. Yes, even with an auction sale a Home Report and EPC is required. I have been asked that question before but even forgetting the requirement under Scots law for a seller to provide one, any buyer would really need to see one as part of their due diligence, even more so if they need a mortgage.
The cost of this can vary depending on the price and location of your house and as with most things in life, if you shop around, you will be able to find the cheapest deal possible. If you were looking for a ballpark figure though, for a house under £100k I would expect you to be able to get one done for around the £300 mark. Please do not quote me on that but that is the sort of general figure I would be looking to pay if I was selling a house.
Legal Pack creation
Next up it is your solicitor costs. When selling a property at auction you will need a solicitor to create a legal pack for you. Anybody considering buying at auction will want to review this as part of their due diligence. Typically, this will include the Title of your property, any special conditions of sale you want to include and the contract of sale. Before talking about prices of solicitors though, I think it is probably worth noting that price isn’t everything. Prices can vary hugely between firms and the cheapest firm might not necessarily be the best. If they are too cheap, are they going to be too busy and be able to get what you need done in the timescales you need? The answer to that may be yes, in which case that is great, it is something worth bearing in mind however and worth asking when instructing a firm. Prices for creating a legal pack are likely to start at around £200.
Once the property has sold you will need to pay for your solicitor to do the conveyancing, again these prices can vary however as a ballpark starting point, I would personally expect to pay around £500. When agreeing your reserve price prior to the auction, it is worth taking this figure into account as this will be all that is to be deducted from the agreed sale price.
Right, that pretty much covers the costs of selling your property at auction. In one of my earlier blogs, I spoke about some of the misconceptions surrounding property auction sales. I think the idea that it is expensive to sell this way is one that falls into this category, I hope this goes some way to putting that myth to bed.
Should you be interested in selling your property at auction, but you have concerns or are unable to afford the prices I have mentioned please pick up the phone or get in touch, we understand not everybody may not be able to afford some of the costs mentioned. We would be happy to speak to firms on your behalf to try and negotiate a service where you do not pay until after the sale completes.
I hope this blog has been of use to you and goes some way to explaining all the costs involved. Should you wish to discuss any of this further we would be delighted to hear from you.
As always, all likes, shares and re-tweets on our social media channels are much appreciated. For your free valuation or for an informal chat you can either call me on 0131-322-8550 or email me directly on email@example.com.
All the best