What Happens to the Properties that Don’t Sell at Auction?
While putting your property up for auction is an excellent idea with many benefits, it doesn’t always guarantee a sale. In the UK, about 78% of properties sell successfully at an auction. But what happens if a house doesn't sell at auction?
Here at Clive Emson, we are dedicated to selling property and land as a high-profile auctioneering facility. But, with so much on offer during our auctions, it isn’t uncommon that a handful of lots go unsold each month.
If you’re a potential seller with nerves about your property not making a sale or are just curious about the auction process, read on to find out what happens if a property doesn't sell at auction.
What happens if a property doesn't sell at auction?
- It’s not the end of the sale. If a property doesn’t sell on auction day, it is usually listed as an unsold lot, where interested buyers can still make offers. Post-auction sales often happen through negotiation, sometimes immediately and sometimes over the following days.
- Buyers can still make offers under auction terms if the property is unsold at auction. Offers can be submitted after the auction, and if accepted, the buyer must exchange contracts straight away, just like a normal auction purchase, typically with a 10% deposit.
- If a property doesn't recieve a bid, sellers have multiple next-step options - Sellers can relist the property in a future auction, sell via private treaty, approach a house-buying company, or choose to hold onto the property and explore alternatives such as renting or remortgaging.
Looking for a quick sale? Find out how much your property will sell for.
Are you looking for a quick sale? If you’re looking to sell a property via auction and complete within 20 days, get a free appraisal here and find out how much you can sell your property for.
Do houses always sell a auction?
While auctions are a highly effective way to sell property, they do not guarantee a sale. In the UK, around 78% of properties sell at auction, meaning roughly 1 in 5 lots go unsold. This usually happens if the reserve price is not met, there is limited buyer interest on the day, or buyers have not had enough time to carry out due diligence.
Importantly, an unsold property is not a failed sale. Many are sold after the auction through negotiation, relisted in a future auction, or sold via other routes such as estate agents or private sale.
Why do lots go unsold?
There are a variety of reasons why parcels of land and property may not be sold on auction day.
For one, the legal documentation for a property might come in late, not allowing potential buyers enough time to investigate the property and gain enough information to feel as though they are making an informed purchase.
Another reason may be limited viewing slots. There may not be enough time slots available for everyone that wants to view a property to do so. This may put some buyers off. Or, it could just be that the right buyer wasn’t in the room when the auction happened. All of these factors can have an impact on the outcome of an auction.
What happens if a property doesn’t sell?
If a property or a piece of land doesn’t sell at auction, there are options. The general process, though, is as follows:
- The auction ends without the property being sold.
- The seller is contacted after the auction by the negotiator they have been dealing with.
- A discussion is held about the auction interest and the next course of action.
- Clive Emson lists the unsold lots here, on our Unsold Lots page so that any buyers who are still interested or, for some reason or another, were unable to make the auction, can browse through at their convenience and make an offer if they’d like. This page lists the minimum price at which each lot can now be bought.
- If a buyer is interested, an offer can be submitted based on an immediate exchange of auction contracts upon acceptance by the seller.
- The lot is sold or remains on the Unsold Lots page until further notice.
Because there might be multiple parties interested in a property, the auction rep might be extremely busy, or the negotiation process may well be tricky or involve other bodies.
Other options when your property doesn't sell…
Some sellers may wish to take matters into their own hands if their land or property fails to sell at auction.
Selling at auction again
It makes sense to try to put the lot up for auction again. This is a good option if a reserve was not met, if viewings couldn’t take place for any reason, if there wasn’t a sufficient legal pack, or even if the lot was incorrectly prepared for viewings the first time round. Find out more here: how to sell your property via auction.
Selling with an estate agent
For some sellers, selling property with an estate agent becomes a viable option. This usually occurs when the auction house fails to meet the reserve price and the sellers are not in a position to reduce the asking price.
If you are planning to sell via this route, make sure the estate agent has all the correct information in advance, including any issues with the property and the outcome of the auction.
Related reading: Auction vs private sale: Why not use both?
Sell to a house-buying company
Another option for properties that don’t sell at auction is to sell them to a professional house-buying company. The only downside being is that this is often the cheapest option, with house-buying companies usually only offering 80-85% of the market value.Keep hold of the property
As a last resort, some sellers prefer to hold onto their properties until a better chance at sale comes up. They may also consider other options such as remortgaging or renting.
Can l make an offer on a property that didn’t sell?
As stated above, it is expected that not every single property will sell at its first auction. As a result, it is always possible for buyers to make offers on properties that didn't sell.
If your offer is accepted, the same process as if the property was bought at auction entails. That is, you are required to exchange contracts as if you are bidding (with a 10% deposit). You can find out more about buying at an auction here.
Yes - if a property fails to sell you are still able to make an offer. If your offer is accepted, you will be required to exchange contracts as if you were bidding at auction with a 10% deposit.
Buy and sell at auction with Clive Emson
We hope you now have a clearer understanding of the process in place when a lot does not sell at auction. In most cases, it is not the end of the road for that seller, land, or property; rather, an opportunity for a different method of sale to take place.If you have any questions about buying & selling homes at auction or the auction process in general, contact us directly We also post regular advice on our blog and through our Newsletter.
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