A RESIDENTIAL property expert says the number of homes sold at auction has increased as more buyers and sellers become aware of its potential merits.

Amy Leslie, solicitor in the residential property team at Napthens solicitors in Kendal, said larger organisations such as housing associations and property investors already buy and sell homes this way. There can be many advantages, said Amy, including quicker conveyancing, but preparation must be put in beforehand.

"Selling at auction may not be for everyone, but there are distinct benefits for those that decide to give it a go," said Amy.

"Auctions can attract a variety of buyers, usually in a position to make a cash purchase. If there is a lot of interest, this can help achieve a higher price than on the open market.

"However, it’s important to remember the proper preparation must be carried out ahead of an auction, which can put many people off."

Amy said the key steps for selling at auction include:

- Checking with the auctioneer as to the level of service provided for the fee being paid. For instance, auctioneers will usually show bidders round a property and provide online and telephone bidding. Will they also advertise a property in newspapers and catalogues?

- Deciding whether there is to be a reserve price, which means a property cannot be sold for less than the agreed figure.

- Including your lawyer in the process as quickly as possible as they will need to check the auctioneer’s conditions of sale and draft a contract.

- Disclosing relevant information such as title documents, search results and energy performance certificate.

Remember that on auction day contracts are binding on the fall of the gavel, with the buyer instructed to sign the contract and pay a 10 per cent deposit. Completion usually takes 30 days so both the seller and buyer will need to ensure they are ready to proceed.