To start an auction, many auction companies charge a fee. It can vary in price depending on the company, but it could be as much as £1,000.
The most common other disadvantages of selling at modern auction:
You won’t get full asking price.
The full value of your home is typically sold for around 85-90%. However, you should be aware that the auction fees are generally paid by the buyer. That means your only expense might be the fees for a lawyer.
It’s not as guaranteed as a traditional auction.
The transition from auction to purchase occurs as the gavel falls. This means that the transaction is legally binding and the buyer pays a 10% deposit. Modern auctions have legal agreement in place between the auctioneer and buyer, but the agreement is not as final. The buyer is not as financial commited as they would be in a traditional auction.
Chains become complicated.
One drawback for a seller is that because of the auction style, the buyer could be in a chain making any legal commitments on an onward purchase complicated.
