The property is labelled “Unsold Auction Properties” when the auctioneer’s hammer falls and no bids are received. However, this is not the end of the story because the auctioneer will ask any interested parties to leave their contact information before the auction ends. In this article, we discuss the consequences of unsold auction properties from the standpoints of both the vendor and the buyer.
As a result, a sale under auction conditions could be made before the close of trading. It is estimated that at the end of a property auction, 18%-20% of properties go unsold. There are three common reasons for this:
- Property pricing that is unrealistic
- The absence of a real estate legal pack
- Inability to inspect the property
How do you search these unsold Auction properties?
If you went to an auction, stay after the lots have finished because the auctioneer should then move on to the unsold auction properties, giving you a second chance to win one.
Alternatively, check auction house websites to see if they have a page listing properties that did not sell at auction. If no properties are listed, they may offer a sign-up form to receive alerts when new properties become available.
How to buy unsold auction property ?
While the majority of our traditional auction lots are sold within the allotted bidding period, those that do not meet their reserve prices are withdrawn and listed online as unsold auction properties. For buyers who missed the original auction date, this gives them another chance to review our listings, which all include detailed information about the property, a gallery of images, and all necessary legal documentation, and make an offer. At this point, our experienced auctioneers can assist in arranging a post-auction sale to the benefit of both buyer and seller.
So, what happens if a property does not sell at auction?
It all comes down to what the seller is looking for. If they decide to sell the property, there will be room for price negotiation. They might be willing to accept a lower price to close the deal. However, if they have a specific price in mind for the property, it will be more difficult to persuade them to change their minds.
Unsold auction property – a good buy for buyers?
A property that fails to sell at auction may be a good buy for a potential buyer. The reserve price will be revealed if no bids are placed on the property. This is a confidential piece of information known only to the vendor and auctioneer ahead of time, and it is typically up to 10% less than the guide price.
The auctioneer is authorised to sell the property at the end of the day if the reserve price is met. You will be able to get a good deal in this situation.
You should, however, avoid purchasing an auction property that you have not seen or whose legal pack you have not reviewed.
If the right buyers are not present, a property may not sell at auction. This can be attributed to poor property advertising or promotion, or simply bad luck. If no bidders attend, the property may not achieve the guide price and thus fail to sell at the property auction.
Auction Property Wales
All Wales Auction is an award-winning land and property auctioneer that has won Best UK Auction Agency four times. With auctions held every 9 weeks throughout the year in North and South Wales and an excellent selling success rate. Our senior auctioneer has been selling at auction since 1995, and our entire team is qualified through both experience and examination (NAVA Technical awards)
Wales shares much of Britain’s history, but the rugged beauty of its landscapes and the open nature of its people make it a distinctly unique travel destination. For first-time visitors, the most noticeable distinction between Wales and the rest of the United Kingdom is the tongue-twisting Welsh language. While everyone speaks English, learning a few phrases in one of Europe’s oldest languages is part of the fun of visiting Wales. Aside from its Celtic culture, the country is well-known for its numerous imposing castles. Wales’ scenic mountains, valleys, and coastlines are equally enchanting, and no trip to Wales is complete without a long hike through one of its breathtaking national parks.
Purchasing a Somerset Property at Auction
So you want to buy a property at auction in Somerset but don’t know where to begin?
The first thing you can do is look at the properties that are currently up for auction, or contact us to request a copy of our most recent property auction catalogue. You can search for available property and auction lots here, and you can contact our teams to schedule viewings of the properties you’re interested in.
Once you’ve found an auction property that you’re interested in, you’ll need to have it surveyed by a professional surveyor. You will also need to arrange any necessary finances for the property if you win it at auction, as you will be required to pay a 10% deposit on the day and the remaining amount in the 28 days following the auction.
So, your survey is complete, and your finances are in order. You must now read through the legal documents provided by the property’s seller. These will contain all of the terms of the sale, and are available to view online, can be posted out to yourself, or they can be available to read at our offices, if you prefer.
You are now able to register for the auction. This can be done at the registration desk on the day of the auction, or you can print and fill out the form ahead of time and return it to the desk on the day. This will allow you to place bids on the selected property.
If you are unable to bid in person, we offer telephone and proxy services. Please let us know if you require these facilities prior to the auction.
If you have won the desired property after the gavel falls, this is a legally binding agreement, and you must pay the seller 10% of the total amount as a deposit.