John Francis - Estate Agents - Auctioneers - Chartered Surveyors - West Wales Properties - Site Map
Sellers Guide
There is no agent like a local agent when it comes to selling properties by auction. In the Swansea and West Wales area there is no other agent other than ourselves able to offer your property in 18 local offices.
Our auctions encompass all types of properties from residential vacant houses ready for occupation or in need of renovation, to development sites, commercial buildings and investments, agricultural land, country properties with land and farms. Our clients have included Local Authorities, leading Banks & Buildings Societies, Public Utilities, Central and Local Government Departments as well as very many satisfied private clients.
This guide explains the advantages of selling properties at auction – and in particular how a John Francis Auction works.
Why Auction?
The traditional method of selling a property ie a sale by private treaty has been described as one of the three most stressful events that people undertake during their lifetime.
The uncertainty of agreeing a sale and that having agreed a sale the buyer may withdraw due to an adverse survey, change in circumstances, or merely on a whim, is never far away.
It would be wrong to say that there is no stress by selling at auction, but at least all the stress is before the auction date and if the property sells at auction a binding contract will have been entered into.
The biggest advantages of selling through a John Francis auction are:
The widest level of local marketing that is available to your property.
Local as well as national advertising in the press as well as on the internet.
The satisfaction that in open competition and with a realistic reserve price, the property will achieve the best possible market price.
The strong likelihood of a sale on a given day.
In the last five years no other local Estate Agent has sold more properties by value than ourselves with an 80%-85% success rate in each year.
John Francis auctions are successfully able to handle both small properties for as low as £10,000-£20,000 in value up to high value properties including selling the highest residential property sold at auction in Wales, Little Marloes, Marloes, Haverfordwest in 2006 for £764,000.
How Long do I have to enter a property for an Auction Sale?
We hold regular auction sales in both Carmarthen and Swansea. Auction dates are set some 6 weeks before the auction which is usually about the latest date for entry. By this time, we will have discussed your requirements and agreed guide prices for your property. It is at this stage that we would write to your solicitors to prepare legal packs including searches etc and, if necessary, carry out an Energy Performance Certificate assessment.
Marketing
The marketing period starts 5-6 weeks before a sale with adverts in the local press, the production of sales particulars as well as auction catalogues and erection of a sale board. We will widely advertise your property in the press as well as and including our own Auction Website and specialist Auction Websites.
Potential purchasers will want to view your property during the marketing period and have a survey carried out as well. They will want to see any special conditions of sale, title documents, lease or tenancy details (where applicable), searches, planning documentation and office copy entries. This legal pack will be obtained from your Solicitor as soon as it has been prepared.
We will arrange for copies of this documentation to be posted to interested buyers as soon as it is received by us. We also make legal packs available for inspection on our Website.
A few days before the auction, we will agree with you the level of the reserve price to be finally fixed. That is the maximum price you will be prepared to sell for.
What Happens on the Day of the Auction?
It is up to you whether or not you attend the auction.
The auctioneer offers the lot for sale and takes the bidding up to the highest level. When the hammer falls, you have entered into a binding contract and exchanged contracts. The buyer who purchases your property will do so as seen for the price he bids. He can not renegotiate and cannot change any of the terms stipulated thereafter unless it is found that there are errors in the contract documentation.
The buyer will usually pay 10% of the purchase price as a deposit on the day of the auction, the cheque made out to your solicitors. It is normal for completion to take place 28 days after the auction, though this can vary. If you are at the auction you will have an opportunity to meet the buyer and also to sign the contract.
The atmosphere in an auction room can be extremely exciting and competitive. It is often the case that an interested party may bid in excess of the figure that they have previously set as their maximum. In many cases, prices achieved at auction can be higher than those achieved at by private treaty.
How Much does it Cost?
The cost of selling by public auction is greater due to the wider advertising undertaken and therefore the fees that we charge are also higher. This added advertising is essential to ensure that every possible purchaser knows of the auction sale of your property which of course takes place on one single day.
We do not charge an entry fee.
Our valuers will be able to advise you on the cost of sale and where the property will be advertised. If the property does not sell at auction and you decide to withdraw the property from the market, then there will normally be a charge for our costs within an agreed sum usually £350 plus VAT.
What Happens if the Property does not Sell at the Auction?
In the unlikely event that the property fails to reach the reserve in the room, someone may still wish to buy the property. This is when it becomes a distinct advantage if you, the seller, attend the auction, as offers that are received can be discussed with you and if at all possible, exchange of contracts can still take place after the auction. If the property does not sell immediately after the auction, then the property may be put for sale in the normal way by private treaty with the usual marketing continuing.
Who Sells at Auction?
Most of our sellers are private individuals who we have either identified their properties as being suitable for sale by auction or who have approached us believing that their property falls into this category. We have also acted for a large number of Public Bodies including The National Assembly, Local Government e.g. Pembrokeshire and Carmarthenshire County Councils, Building Society and Banks, Receivers for Public Bodies, executors and trustees who see that there is an added advantage of being able to sell a property in an entirely open and transparent way. It is therefore a highly efficient method of sale.
What Type of Properties are Entered into Auctions?
These are usually unusual properties that are difficult to value because of the range of interest that may be generated. It is particularly suitable for dilapidated or unmodernised properties or properties enjoying an unique location.
Most types of properties can be suitable for auction provided that a realistic reserve price is agreed.
Local and National Auctioneer?
The two are quite different. Whilst some types of property may be better sold nationally, in most cases, local agents are better able to access buyers in their locality. We do not believe that most buyers would be prepared to travel to London or even Birmingham or Cardiff to attend a large auction with 100 plus properties for sale. We are therefore confident that the local auctioneer will achieve the highest possible price.
What Next?
Contact your Local John Francis Office and ask for a free market appraisal. Please state that you believe that your property may be suitable to sell by auction and that you specifically want to discuss that aspect.
