Probate Property Auction: Rapid Sale and Payment

If you sell probate property by auction, it is the best way to achieve the highest price swiftly and keep beneficiaries happy without further delays – which could be a year or more if they are unlucky if you take the estate agent route, with gazundering,  sales falling through, survey and the buyers’ mortgage problems all increasing both costs and delays. Contracts are exchanged on the day of the property auction, and a non-refundable deposit is sent to your solicitor immediately with completion 28 days thereafter. No fall throughs (I suppose you could be really unlucky and the buyer dies within those 28 days). National auctions every 4 weeks, so there is as little delay as is possible in getting the best possible price – and that cash in the bank, ready for the beneficiaries.

What is the average time from enquiry to sale with a probate property auction?

Usually within 24 hours, a property can be listed on the next Auction catalogue, then the auctioneers must await the legal pack, which could easily be prepared during the probate period and be immediately available when the Grant is issued. The property then goes on sale on the next auction, so let’s say someone enquired today and the property can be listed by the next day and sold at the next 4 weekly auction sale.  That is fast. Happy beneficiaries, less hassle for the executors.The traditional route through an estate agent is fraught with problems and concerns, the main ones being timescale – with generally months of uncertainty, the number of failed mortgage applications failed sales and the additional legal bills they will cause, gazundering and that sneaky feeling that the property might get sold to a friend of the agent (though the market is much cleaner these days). 

Selling probate properties is particularly well suited for sale by auction.

Clients with Probate properties generally wish to sell their property as swiftly and efficiently as possible. Selling property at auction not only facilitates a quick sale, meaning beneficiaries can receive their share of the estate quickly, it also provides the best possible price upon conclusion. Selling through an estate agent is likely to involve property chains which can and do go wrong, so the sales process can be very drawn out. And not necessarily successful!Selling probate property by auction can be a quick and efficient way to achieve a good price, especially if the property is in need of repair or renovation. Auctions are also a good option for selling properties that are difficult to value, such as those in unusual locations, with unique features or which would not pass a mortgage survey.There can also be beneficiaries who argue that the property was sold at under market value, something a professional probate auction can eliminate. Early payment of beneficiries tends to outweigh moans!

Here are the major benefits of selling a probate property by auction:

• Speed: Auctions can be a very quick way to sell a property, with contracts exchanged on the day of the auction. This can be particularly beneficial if you need to sell the probate property quickly in order to distribute the estate to the beneficiaries. They are usually champing at the bit! Auctions are held every 4 weeks.
• Price: Auctions can generate competitive bidding, which can lead to a higher sale price than you might achieve through a traditional estate agent and far faster.
• Certainty: Once a property sells at auction, the buyer is legally bound to purchase it. This can help to avoid the uncertainty of a traditional sale, where the buyer can pull out at any time.
• The sellers solicitor will get the 5% deposit on the day of the auction as well as contracts being exchanged on the same day, so within 28 days the seller gets the full payment.
• No need for sellers or buyers to attend – watch or bid from your home or office or even on your mobile.

To sell a probate property by auction, you will need to:

1. 1. Obtain a grant of probate. This is a legal document that gives you the authority to administer the deceased’s estate, including selling their property. Of course, you can have an initial chat with the property auctioneer whilst awaiting the grant of probate.
   2. Get a valuation. The auctioneer will arrange for a surveyor to value the property (in this case, FREE), so that you can set a reserve price. The reserve price is the minimum price that you are willing to accept for the property. In this case the valuation is FREE – and is used to establish a catalogue price which is normally exceeded .
   3. Prepare the property for sale. This may involve clearing out the property, making any necessary repairs if the property is likely to be immediately habitable then, and having it professionally cleaned.
   4. Market the property. The auctioneer will market the property to their database of potential buyers, as well as on their website and in property portals.
   5. Organise the legal paperwork necessary for the contract to be signed on the day of the auction.

Here are some of the things to keep in mind to sell probate property by auction:

• No Sale No Fee  so there is nothing lost in the unlikely even your property doesn’t sell.
• Reserve price: It is important to set a realistic reserve price for the property. If the property does not sell at auction, you will need to consider remarketing it at a lower price: the Reserve is usually just away of attracting early bids – but it could sell at that price if you are unlucky.
• Buyer’s fees: Buyers at auctions typically have to pay a buyer’s fee. This fee is usually added to the hammer price of the property.
• Condition of the property: Probate properties are often sold in their current condition, without any repairs or renovations being carried out. This means that it is important to be realistic about the condition of the property and to set a reserve price that reflects this.
• You get a free valuation: The auction house will offer a FREE valuation.
• Costs – the costs of an auction are only payable on a successful sale and will normally be paid by your solicitor as an expense from the proceeds.

Overall, selling a probate property by auction can be a quick and efficient way to achieve a good price. Why not use the form below and have a chat?Selling Probate Property by Auction is often the best way to get a good price quickly, as contracts are exchange on the day of the sale with completion – and the cash – very soon after.

For more information on selling probate property by auction, pop your details in the form below: for buyers, this is a way of keeping up with what is available in probate property auctions.

Probate Auction ENQUIRY FORM

Error: Contact form not found.

Even more benefits of using a Probate Property Auction.

Insurance