Considering selling your property at auction?
For any seller looking for a secure, fast and easy sale, selling your land or property by auction could be for you
Our story
Founded in Shipston-on-Stour in 1843, the Sheldon Bosley Knight business was built on auctions and on-site farm sales. In the more than 180 years since, our business has survived two world wars, seen seven monarchs, successfully navigated recessions and depressions, and watched in awe as men landed on the moon. Very few UK independent businesses have the heritage we do.
Our business has also grown and developed significantly since we started, into an estate, land and property agency, with a team of more than 250 and trusted by thousands of happy customers.
We now have 10 specialist departments - residential sales, residential lettings, commercial property, block management, new homes, rural land agency, surveys and valuations, planning and architecture, strategic land and development and auctions - with offices across Warwickshire, Worcestershire, the Midlands, Leicestershire and the Cotswolds and are proud to be embedded in the local communities we serve.
Our values
We pledge to always do the right thing by our clients, no matter what. Our long-standing relationships with local land and property owners are testament to our dedication to customer service and client satisfaction.
We actively seek to improve the communities in which we live and work. We’re always looking out for new talent to recruit and invest heavily in continuous professional development to ensure our staff are consistently ahead of the game.
Our mission
Our mission is to be the leading land and property agency in the region. We endeavour to provide a friendly, convenient and personalised in-house service from start to finish, whether you’re buying, selling or developing.
Our expert auctioneers, surveyors, architects, planners and estate agency professionals work together to advise with transparency and integrity every step of the journey. Every customer and piece of land or property is different, so our approach should mirror that and we take the time to understand your situation and talk you through all your selling options.
This means you can make an informed and knowledgeable decision, based on what is right for you.
A guide to selling by auction
If you’ve sold land or a property before, chances are this was done by ‘private treaty’. This is the way most estate agents sell and it’s where we list your land or property for sale, conduct viewings and receive an offer.
Once negotiated and accepted, the solicitors will work on the contract of sale and purchase until you exchange contracts with the buyer and you receive the completion funds some weeks later. This can be a time-consuming process, often taking many months to finish. Selling at auction follows some of the familiar steps, but it is much quicker, more transparent and far more secure.
All our auctions take place at a convenient venue, outside normal office hours and if buyers aren’t able to make the auction in person, there are options to either bid online, by telephone or by proxy.
The main consideration with selling at auction is commitment. Once the gavel falls, and if the reserve has been met, you’ve just exchanged contracts and are legally committed to complete the purchase.
This isn’t an issue if you’re serious about selling your land or property and you can look forward to getting completion funds a few weeks later.
This guide will go through some of the main parts of the process of selling land or a property through auction and we will always be on hand to answer any questions. You can reach us by emailing auction@sheldonbosleyknight.co.uk or calling our auction teams at either Stratford-upon-Avon or Leicester.
Stratford-upon-Avon office 01789 867123 Leicester office 0116 3087744
The auction process: a whistlestop tour
For any seller looking for a secure, fast and easy sale, selling your land or property by auction could be for you
The first step will be to get in touch with one of our auction team who can arrange a time to meet you at your land or property, in our offices or via a virtual meeting.
During this initial meeting, we can assess your suitability for auction and recommend the best course of action, including guide and reserve prices, timescale and all the costs involved.
If you’re happy, we can book you into our next available auction and start the ball rolling. You will need to instruct a solicitor to start preparing the legal pack and get your land or property ready for viewings.
The first area we look at is marketing. We create a bespoke marketing plan for all our Lots and we will be seeking to utilise both our regional network of offices and national presence online to generate interest.
In addition to websites such as Rightmove, we also advertise in auction specific websites to ensure we attract all the different types of buyers in the marketplace.
All our Lots are made available to view before the auction and our team will arrange a suitable time to view the Lot with the buyer. This allows interested buyers to inspect the land or property and request the legal pack which will detail the contract, searches, title and any information relevant to it.
We advise potential bidders to ensure their solicitor reviews the legal pack and for them to take advice (in the same way they would if they were buying by private treaty).
We will keep you updated throughout this stage with weekly calls and go through any interested parties and advise you of any pre-auction offers we receive. You may opt to accept a pre-auction offer (we will be on hand to advise you of the best course of action) in which case the sale will proceed on the terms of the auction and we will require the buyer to exchange contracts before the auction date.
Although pre-auction offers may be considered, most sellers choose to take their property into the sale room. On the night of the auction, bidders will need to register their interest to bid, place a bid and follow the progress of the auction which will be controlled by the auctioneer.
Provided the reserve price is met (see below for details on what the reserve price is), the auctioneer will exchange contracts at the fall of the gavel.
The highest bidder will need to sign the memorandum of sale and contract, pay their deposit and buyer’s premium and they will normally have 20 working days to complete on their purchase.
More detail
This summary will give you a flavour of selling land or a property by auction, but there is more information in the following pages on some key areas. If you have any questions about selling at auction, please email our team auction@sheldonbosleyknight.co.uk or call:.
Why sell through Sheldon Bosley Knight Auctions?
Security
At the fall of the gavel, there is an immediate exchange of contracts. This means you will have security of sale without the risk of the chain falling through, the buyer changing their mind or renegotiating the price at the last moment.
Speed
Completion normally takes place 20 working days after exchange of contracts, but this can be flexible based on your situation. This means you are in complete control of when you complete on your property.
Extensive marketing
Each Lot has a bespoke marketing strategy which utilises our extensive branch network of local experts. This ensures we create the maximum interest and a competitive bidding environment.
All Lots are uploaded to the main property websites including Rightmove, as well as auction buyers’ websites and our own website. We also put up a prominent auction board and send email alerts to our extensive database. We undertake social media advertising, include Lots in our PDF and printed auction catalogue, target any local and/or national press advertising and send a press release if applicable.
Best price
Our extensive expertise and bespoke marketing plan for your land or property, combined with a robust advertising campaign, ensures we can attract the best buyers to the auction room.
Competitive bidding against each other means you achieve the best price for your Lot on the day of the auction.
To safeguard you, a reserve price is agreed in advance, meaning your land or property won’t sell for less than you are willing to accept
All land and property types
One of the real benefits of auction is the flexibility in the types of land and property that can be sold. From the more traditional vacant residential property, commercial and mixed-use properties, tenanted or investment properties, to land of varying shapes and sizes, forest blocks or commercial woodland, development sites (with or without planning permission), garage blocks and freehold ground rents.
Auction is also an excellent option for unconventional properties such as churches, fire damaged properties, former police stations, former public houses or nursing homes.
The only real criteria for selling by auction is the property has a Title! The Title doesn’t even need to be registered with HM Land Registry (provided you have the original Title deeds and can prove ownership).
Our clients are as varied as our properties and range from sellers with a single parcel of land or property, investors looking to sell all or part of a portfolio or corporate clients with several properties throughout the year to sell.
Whatever your situation, whatever your property, auction could be the perfect solution for you.
Definition of ‘guide price’ and ‘reserve price’
A guide price is an indication of your current minimum acceptable sale price. The guide price is given to help potential bidders in deciding whether to pursue their interest in the property.
Usually a reserve price is set by you at the point of instruction and the auction valuer will be able to help with reaching the right reserve price.
As the reserve price may not be fixed at this stage and can be adjusted by you at any time prior to auction, a guide price is published. This guide price is shown as a single figure where the reserve price will be within 10% of the guide price.
For example:
If the guide price is £175,000, the reserve price will be between £157,500 and £192,500.
Both the guide and reserve prices can change at any time before the auction. A reserve price is the minimum price at which you allow us to sell the Lot at and the reserve price remains confidential between you and us.
It is important to note the reserve price is the lowest price we are authorised to sell the Lot for, not the highest price. If buyers are wanting to bid more, the price will go up. The role of the auctioneer is to sell for the best possible price through competitive bidding.
Brochure and viewings
For each property or piece of land, a brochure will be produced and made available online. It’s best practice for the bidder to check the brochure when they view the land or property to make sure they’re happy with all the details.
The bidders will be able to arrange a viewing through the auction office by making an appointment at one of our block viewings.
During this time, we advise they check in the legal pack and if it’s a property, what fixtures and fittings are included in the sale, as this may differ with what they see during their viewing. Details of the viewing schedule will be on the land or property listing, on our website or by getting in touch with the auction team.
The auction catalogue
This document is made available online as a PDF around one month before the date of the auction. For our live events, the catalogues are printed for the night of the auction.
On occasion, changes to the catalogue are necessary where information is made available after going to print. In these situations, amendments to the catalogue or conditions of sale (addendum) will be loaded to the website, displayed in the sale room and will be read by the auctioneer at the start of the sale.
The addendum will form part of the contract of sale and the addendum sheet may have to be signed by the buyer. Bidders are deemed to be aware of any addendum and any other announcements made by the auctioneer and bid subject to these.
Date of auction
We hold regular auctions throughout the year, and the dates will be published on our website and for each land and property listing.
It will show the date, time and location of the event. Full details of the venue can be found in the auction catalogue. Lots will need to have, as a minimum, a full legal pack complete at least five days before the sale. Therefore, we normally stop accepting Lots about one month before the auction.
Legal pack and additional costs
The legal pack needs to be available to review before the auction and it is essential bidders have the opportunity for their legal representatives to review the legal pack.
We cannot offer a Lot for sale on the night of the auction without the legal pack fully completed. Special conditions of sale can contain additional costs (that is costs over and above the price the lot is ‘knocked down’ at) and your solicitor will be able to advise on what additional costs may be appropriate for your sale.
Buyer’s premium
A buyer’s premium applies to each lot. This is normally £1,500 inc VAT (£1,250 plus VAT) but may differ on certain lots as indicated in the auction catalogue.
This is paid by the buyer in the saleroom immediately after the Lot has been ‘knocked down’. The buyer’s premium is paid to Sheldon Bosley Knight to cover a buyer’s administrative costs.
Deposit
At auction, the fall of the gavel creates a binding contract and buyers will need to pay a deposit of 10% of the purchase price (subject to a minimum of £5,000). This deposit will be retained in our auction client account and sent to your solicitors for completion.
Rents, information regarding tenants and price estimates
Depending on the Lot being sold, we may be able to provide estimates regarding the price at which a property may be sold after redevelopment or rented. These can aid a prospective buyer in making a decision whether or not to pursue their interest in the Lot. These guides cannot be accepted by a buyer as advice or any form of valuation.
Exchange and completion
Unlike private treaty purchases, at the end of the auction, the successful buyer will have exchanged contracts at the fall of the gavel.
This legally binging contract is due to be completed 20 working days after the auction date, unless you specify otherwise. This isn’t a problem if you are a serious seller, as you can get the completion funds quicker than through other methods of selling property.
Pre-auction offers
As mentioned earlier, we will advise you of any offer we receive during the marketing of your property prior to the auction date.
Pre-auction offers must be submitted in writing to the auctioneer’s office by letter or email, including name, address, telephone number and details of conveyancers.
Pre-auction offers can only be considered based on an exchange of contracts before the auction in accordance with the Common Auction Conditions (found towards the back of the auction catalogue) with a 10% deposit (minimum £5,000) and payment of the buyer’s premium.
If an offer is accepted, the Lot will not be withdrawn from the auction until exchange of contracts has taken place.
Ways a buyer can bid
We are pleased to be able to offer four different methods for buyers to bid. A lot of buyers choose to bid in the room and make an evening of the auction.
However, not all buyers will be local or they may not be able to participate in the live event. Therefore, we offer remote bidding to anyone who is unable to attend the venue. We once had a bidder who was midway to Australia when the auction was due to take place!
Remote bidding can be online, by telephone or proxy. This ensures if anyone wants to bid on your land or property, they are able to do so even if they cannot make it to the auction itself.
For further information about selling property at auction or if you require more specific information concerning property auctions, please email our team auction@sheldonbosleyknight.co.uk or call
Stratford-upon-Avon office
01789 867123 Leicester office 0116 3087744
Meet the team
Matt Burrows BA (Hons), MNAVA ASSOCIATE DIRECTOR / AUCTIONEER
Jessica Lewis MNAVA AUCTION VALUER / AUCTIONEER (SOUTH)
Will Glendenning SENIOR AUCTION
Glendenning AUCTION AGENT
Samantha-Marie Parsons MNAVA AUCTION VALUER / AUCTIONEER (NORTH)
Hetal Patel AUCTION AGENT
For more information and future auction dates please visit our website or our social media channels
www.sbkauctions.com