If you think that selling your commercial property at auction could be right for you, the first step is to choose an auctioneer. Therefore, having an idea of precisely what you should expect from a quality auction house will help you make an informed decision.
First of all, some properties are more suitable for auction than others and you should expect to receive a no obligation appraisal of whether, in the agent’s experience, this would be the best method of disposing of your property. The auctioneer should then suggest a likely selling price and may also at this stage propose a reserve price, below which your property will not be sold.
If you are happy with these, you will then be sent a standard contract to consider, setting out the agent’s terms and conditions. You should read these carefully before signing the document and make sure you’re clear about the auction entry fee and the commission.
Once the contract has been signed, the auctioneer should instruct a surveyor to inspect your property and provide you with draft sales particulars for your solicitor’s approval. A guide price, which is designed to achieve the best price at auction, will also be suggested and, once again, this should be subject to your approval.
Providing you are happy with all of the above, the marketing period will begin around three or four weeks before the date of the auction. This will involve including your property in the auction catalogue, press and online marketing and any targeted marketing the auctioneers engage in.
Finally, depending on the level of pre-auction interest shown in your property, the agent may wish to discuss the reserve price again with a view to amending it. If this is the case the guide price may also be subject to adjustment.
Higher value, prestigious properties are usually auctioned by the national auctioneers. Unusual lots, smaller building plots and secondary property are often sold via regional or local auctioneers with local knowledge and clients.