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NOVEDADES OVERSEAS S.L. Spanish Property Auction
Selling at Auction
This guide explains the advantage of selling Spanish residential properties at auction and how the process works.
By using progressive and persuasive marketing techniques Novedades Overseas S.L.’s auctions attract under one roof, on behalf of vendors, a group of potential buyers who have the genuine intention to purchase one or more properties on the day of the auction.
With a slow-down of property sales both nationally and internationally, the resale market in Spain is feeling the pinch. Anyone who has recently offered a property for sale will tell you of the succession of viewers leading nowhere.
Having found a buyer during the time taken to complete the sale, there is the constant threat of the purchaser pulling out prior to completion.
The biggest advantages of selling through an international auction house such as Novedades Overseas S.L. are:
- Extensive marketing exposure – each property is advertised in the international, national trade and local press.
- Generous amounts of catalogues are distributed to interested parties
- The properties are featured on the web with many potential buyers registering for catalogues
- Sensibly priced so there is a strong likelihood of selling on the day (average 90% are sold at auctions)
- Satisfaction that in open competition, and with a realistic reserve price, the property will achieve the best possible market price
N.B. Auction properties are sold unconditionally, not sold “subject to contract”, “subject to finance” or “subject to survey”.
The successful bidder is legally bound to complete the sale within 28 days of purchase.
What is the time frame for an auction sale?
The sooner you make the decision to sell your property the better as it will immediately be advertised in our online catalogue.
The latest date for entry is six weeks prior to the auction, by which time you will need to have discussed your requirements with a member of our auction team, confirmed your interest in proceeding, and agreed a guide price for your property.
The marketing starts as soon as you have agreed a guide price, with the publication of our online catalogue.
The printed catalogue will be published four weeks prior to the auction, and will include details of all lots to be offered along with colour photographs and descriptions of each property.
Potential purchasers may want to view your property during the marketing period and have searches carried out.
They will also want to see relevant documents:
- Photocopies of Escritura or last copy of Nota Simple in The Vendor’s name
- Last local property tax paid and rubbish collection receipt
- Last community fees receipts
- Details of administrators
- Last electricity, water and telephone bills
- NIE, Residencia or passport
Should you require assistance to obtain the required documents, we are pleased to recommend a Gestoria who would provide a professional service.
Procedure
Novedades Overseas S.L.’s auctions are held in leading hotels and take place over two sessions on the same day, or over two days if necessary.
It is very simple: the auctioneer offers the lot at the minimum reserve price and takes the bidding to the highest level. The fall of the hammer represents an exchange of contracts, and the successful bidder is legally bound to deposit a 10% part payment, and signs a memorandum of sale before leaving the auction room. The buyer purchases the property “as seen” at the price he has bid.
He may not re-negotiate and cannot change any of the terms stipulated.
The buyer pays the 10% as part payment of the purchase price on the day, and completion usually occurs 28 days later when the balance of the price is payable. The funds are then paid to you, less our fees, by the appointed lawyers.
The atmosphere in the auction can be extremely exciting and competitive, and it is often the case that interested parties will bid in excess of their previously set maximum. In some cases, the price achieved at auction can be higher than that achieved by private sale.
Buyer cannot attend the auction
For those potential buyers who are unable to attend the auction it will be possible to bid in other ways:
By Telephone:
Novedades Overseas S.L. makes contact with the potential buyer when the lot is being auctioned.
By Proxy in Writing:
The potential buyer will specify their maximum bid and the auctioneer bids on their behalf.
In each case the buyer must complete a registration form and forward a bankers draft to cover the initial deposit prior to the date of the auction.
What happens if the property does not sell at auction?
If the property fails to reach the minimum price in the auction room, it is possible someone will still wish to buy it.
It is then up to the vendor whether they wish to accept an offer, and instruct the auctioneers accordingly.
The property may even be sold in the days or weeks following the sale as Novedades Overseas S.L. continue with their marketing.
Vendor's Benefits
- Extensive marketing exposure – each property is advertised in national and international trade and local press – also on our website
- Hundreds of catalogues are mailed throughout Europe – potential clients register to view online catalogues
- Strong likelihood of a sale on the day of the auction (average of 90%)
- Knowledge that in open competition and with a realistic minimum price, the property will achieve the best possible market price
- Buyer legally obliged to complete sale within 28 days
How much does it cost to sell at auction?
We charge an entry fee to cover the inspection of the property, marketing and catalogue production costs. In addition there is a commission on the sale of the property.
The entry fee depend on how much space you take in the catalogue. Our team will be able to advise you on this. The minimum is one third of a page at 150 euros. We would recommend more space for higher value properties, or where a map or site drawings are required.
In the event of a sale our commission is usually 3% plus IVA for a sole agency or 3.5% plus IVA for a joint agency. A joint agency is usually advisable where we feel it is necessary to instruct a local agent to handle the viewings, or an agent is requested by the vendor.
Our team will confirm the commission rate and catalogue fees with you in writing before accepting your instructions.
What next?
Contact a member of our auction team to discuss your particular requirements and to arrange an appointment to view the properties to be auctioned. Our representative will request full details of the properties and offer marketing recommendations, without obligation.
If your properties are not suitable for sale by auction – we will tell you. If suitable, and conditions are mutually agreed, we will proceed as described.
UK: (0044) 207 404 0548
Spain: (0034) 965 631 211
Email: novedades@spainpropertyauction.com
T. +44 (0) 207 404 0548
F. +44 (0) 207 262 4433
E. novedades@spainpropertyauction.com
