Selling a plot of land at auction is a quick, effective way to achieve a sale. This is especially the case if your land and its location mean there is a good development potential, you’ve already been granted planning permission, there is demand for local land from investors, or it is suited for agricultural or equestrian use.
Whether you’re selling inherited land, have a field or paddock that’s no longer being used, or have an empty plot that you have no plans for, auction buyers often look for strategically located land that they can develop or use for their own businesses.
The difference with selling land at auction is that you’ll have a fixed timescale and a high likelihood of selling during the first auction you list your land in, ensuring you can move forward quickly and will often benefit from competitive bidding.
Selling Land at Auction: Key Takeaways
- Property auctions offer a fast, transparent way to sell land of any size, and sellers often benefit from competition between bidders, which can help establish a fair market value.
- Preparing a detailed legal pack with all of the relevant information about the land, what it can and can’t be used for, and whether it’s being sold as a development project or not is essential.
- Different types of land appeal to very different buyers, which is why working with an experienced auctioneer is incredibly important to ensure your land is marketed to the right demographics.
What Are the Benefits of Selling Land at Auction?
The benefits of selling land are very much the same as selling property by auction. Alongside being able to market land to the buyer groups most likely to be interested, auctions offer speed, with a defined deadline that encourages buyers to express their interest and decide whether to bid to avoid losing out. Here are the main benefits:
Fast and efficient sale: Once the hammer falls, contracts are exchanged immediately, with completion typically taking place within 20 working days.
Competitive bidding: Multiple interested buyers can bid against each other, helping to achieve the best possible market price.
Greater certainty: The sale becomes legally binding on the day of the auction, reducing the risk of deals falling through.
Ideal for all types of land: Auctions are particularly effective for development land, agricultural land, amenity land and plots with planning potential.
Access to motivated buyers: Auctions attract developers, investors and cash buyers who are ready to proceed quickly.
In contrast to property sales, land sometimes takes longer to sell through conventional routes, particularly where buyers would need specialist knowledge, or the land is being sold as a development opportunity.
What types of land can you buy at auction?
When we talk about land sales, it’s common to think of open fields, but this is just one of many types of plots that are listed at auction. In addition, auctions are suited to a wide range of plot sizes, rather than being limited to large development sites.
Some of the many types of land we sell include:
Land earmarked for residential developments
Agricultural land
Woodlands
Brownfield sites
Building plots
Garden and allotment land
Commercial land
Surplus land owned by businesses
How Should Buyers Prepare Land for an Auction Sale?
Preparing before an auction is vital, as sellers must complete a detailed legal pack to ensure buyers are fully informed. Here are some of the steps we’d recommend:
Confirming ownership details: Checking that your title documents are up to date and include any rights of way, easements, or restrictions that affect your land.
Assembling the legal pack: Working with your solicitor, you’ll need to provide copies of the title register, title plan, searches where relevant, any special conditions of sale and planning documentation if you have any.
Providing supporting information, such as boundary plans, access arrangements, utility connections, planning history, environmental reports and surveys.
The more accurate information you’re able to provide before the auction, the easier it is for buyers to decide whether to bid.
How Does Pricing Work for Land Being Sold at Auction?
Auction pricing doesn’t work the same way as general markets, and you’ll usually need to consider two prices, which we can of course help with:
Guide Prices | Reserve Prices |
Published before the auction | Confidential minimum selling price |
Designed to boost interest and give buyers an idea of what you expect to sell for | Agreed between the seller and the auctioneer |
Can attract more competitive bidding | Property will not sell if the reserve isn’t achieved |
Fully visible to all registered bidders | Not disclosed |
Deciding on pricing can be tricky, and an auction appraisal is usually the best way to gauge what you should expect. Values are impacted by several variables, including location, size, planning status, access, utilities, topography and local demand.
Buyers will also consider the development potential of a plot of land and whether there are environmental constraints on what they would be able to do with the land if they become the winning bidder.
What Happens After a Sale of Land at Auction Concludes?
The auction itself is managed by us as your auctioneer, and we handle collating bids and confirming the highest bid when the auction ends. However, the exact process will depend somewhat on whether it is a conditional or an unconditional auction.
Unconditional auctions are the norm, where:
The highest bidder wins
Contracts are exchanged there and then
The buyer pays the deposit
Completion takes 20 wording days
Conditional auctions come with slightly longer timeframes, but either way, the certainty of being able to sell quickly and market land to a wider pool of buyers is one of the main reasons landowners often choose auctions.
Why Do Land Buyers Attend Auctions?
Auction buyers are diverse, and many bidders are looking for ways to buy land at a competitive price, with the potential to change the use of a plot of land or develop it as part of an investment project or property portfolio.
Bidders might, for example, be searching for:
Open land to develop
Land with investment potential
Self-build plots
New land to expand agricultural businesses
Other buyers engage in ‘land banking’, in which developers and investors purchase undeveloped land with no intention of developing it immediately. As land becomes more valuable, local towns and cities expand, or infrastructure projects develop, they can then sell or develop the land when it is financially beneficial to do so.
Clive Emson explains that ‘Land attracts a huge range of buyers, whether people who have always wanted to build their own home, owners of livestock and animals, investors and property developers.
Our advice is to ensure the information is clear from the start so all prospective bidders can see what the land could be used for, what it is next to, what utilities are available, and any limitations on the use or development of the plot.’
Frequently Asked Questions
Can I Sell Land at Auction Without Planning Permission?
Yes! Parcels of land are often sold without planning consent, and they can appeal to buyers who are interested in exploring development opportunities themselves, choose to invest in land as part of their investment strategies, or want open land for agricultural businesses.
Do Sellers Need a Solicitor to Sell Land at Auction?
They do – all buyers and sellers are advised to appoint a solicitor. Their role is to ensure the legal pack is accurate and comprehensive for sellers, and to review this information on behalf of buyers.
