Commercial Property Auctions
London's commercial property market is often costly and highly competitive. Using an auction house to sell your property offers buyer and sellers minimal fuss. For buyers, this generally means purchasing property at a relatively lower price than through a realtor or private sale. On the other hand, property sellers are typically able to sell their properties quickly at or above market value.
About the Auction Process
Most commercial properties are suitable for selling at auction, whether you are selling a residential block, a shop or restaurant, or office space. The first step is to discuss your property with an auction house. Once contact is made, the information you share will help inform an appraisal. Typically, appraisals are non-binding and you can speak to other auction companies. Shopping around for the right auction house will help ensure that you get the best service and price for your property. Once you settle on an auctioneer, your property will be inspected. A reserve price is agreed upon by the seller and the auctioneer. Remember to set a realistic reserve that will attract interest and serious bids. A reserve price will protect sellers from having their property sold too cheaply. At auction, prospective buyers will bid on your property. Once the auctioneer's gavel falls, the final bidder enters into a binding contract. There is no opportunity to change or negotiate the final price. A deposit is usually required on the day of the auction, while the remaining balance is generally due several weeks after the auction.
Who Auctions Commercial Property
From local authorities and housing associations to public and private property companies, a wide variety of clients use auctions to sell their properties. Auctions are also used by executors and private individuals to sell assets. Banks may also sell properties at auction when owners have defaulted on a mortgage.
The Benefits of Auctions
The benefits of selling a property at auction include having a property sold immediately and transparently. Auctions are also a good way of selling property that is difficult to value. Without a fixed asking price, a property may sell at a higher price than expected. Through the auction process, potential buyers can bid and compete for a property using their own measures of what the property is worth. This generally means properties are sold at or above their market price. Some properties are also better suited for auction than a sale through private treaty or with a realtor. For example, a property that is suited for renovation work or with development potential will likely attract bids and competition from developers and builders who attend auctions that could drive up the price.
Choosing an Auctioneer
A good auction house will achieve the best price for your commercial property. They will also work hard to market your property with prospective buyers, including professional and private bidders. A professional auction house will publish details about your property auction on their catalogue and website. They will also advertise your property and the upcoming auction in local and national media, including newspapers and property-related websites. Major companies that undertake commercial property auctions in London include Savills, Allsop, Auction House, Barnett Ross, and Barnard Marcus. Before choosing an auction site, do research into each company by attending an auction and reviewing their catalogues. When you are ready to sell your property, get three or more appraisals to find which company will achieve the best possible price.