Selling your home at public auction via Biddit: what sellers need to know

If you are thinking about selling your home at public auction via Biddit, you are choosing a different route from the classic sale through an estate agent. Biddit is the online auction platform of the Belgian notaries: the notary organises the sale, prospective buyers bid against each other online and the highest bidder buys. That sounds quick and simple, but as a seller there are a few things you should weigh up carefully beforehand.

This article looks at Biddit from the seller's side. Looking for information as a buyer? Then read our guide on buying a home at auction in Belgium.

How a voluntary public sale via Biddit works

In a voluntary public sale, you choose to sell by auction yourself. That is different from a forced sale, where a creditor makes the sale happen.

Broadly, the process looks like this. You go to a notary, who puts the file together: the title deed, planning information, the energy performance certificate (EPC), the asbestos certificate, the inspection of the electrical installation and the other mandatory documents. Together with the notary you set the starting price, the price at which bidding opens. The notary then draws up the conditions of sale, which are the same for every bidder.

The property is then advertised, on Biddit itself and often on the usual property portals as well. Viewing slots are scheduled so that interested parties can see the home. On a date fixed in advance, the online bidding period opens. Candidates register on the platform, identify themselves digitally and place their bids. At the end of the bidding period there is a highest bid, and the notary handles the award of the sale.

When an auction makes sense for a seller

A public sale works particularly well in four situations.

You expect a lot of interest. A home in a sought-after location, or a property whose value is hard to pin down, can fetch more at auction because buyers bid directly against each other. The market sets the price, not a single negotiation with a single candidate.

You want a fixed timeline. With an auction, the closing date is known in advance. You know when bidding stops and within what period the buyer has to pay. With a private sale, a file can sit idle for months.

There are several owners. With an inheritance or a separation, it is sometimes hard to agree on a price. A transparent auction where the market decides can take the tension out of the situation.

The property is unusual or has defects. A home that needs renovating often attracts investors and developers. They are used to auctions and bid without conditions precedent.

Starting price and the right to refuse the highest bid: how to protect yourself

Sellers' biggest worry is understandable: what if the bids are disappointing? There are two tools for that.

The first is the starting price. A low starting price attracts more bidders and gets the bidding going faster. A starting price that is too high puts candidates off, sometimes to the point that nobody bids at all. The starting price is therefore not a minimum price you will receive, but a starting point chosen to create competition. A realistic estimate of the market value is the place to begin. You can have one made by a property professional, or first get an indication through a free valuation.

The second tool is the right to refuse the highest bid (known in Dutch as the gunningsvoorbehoud). In a voluntary sale, you can have the conditions of sale state that, after the bidding period ends, you still decide whether to accept the highest bid. If the highest bid is below what you want to receive, you can refuse and remain the owner. Discuss with the notary exactly how this reservation is worded and within what period you have to decide.

If you refuse, you will still have incurred costs for the file and the advertising. Those costs remain yours to pay.

Costs and payment when selling via Biddit

In a public sale, the buyer pays the costs of the sale on top of the hammer price: registration duties and the notary's fees. These costs are higher in a public sale than in an ordinary private sale. Experienced bidders factor that in and bid a little more cautiously as a result. Keep this in mind when you compare the proceeds of an auction with an asking price in a classic sale.

As the seller, you bear the costs of getting the home ready for sale: the mandatory certificates, any surveys, the removal of a mortgage registration and the advertising. Ask your notary for a clear estimate in advance, so you know what you will be left with net.

One advantage for the seller is certainty of payment. A bid in a public sale is binding and contains no condition precedent for a mortgage. The buyer has to pay within the period set in the conditions of sale. In a private sale, a sale can still fall through if the buyer does not get financing.

Biddit or an estate agent: weighing it up

The comparison comes down to price, time and support.

With an auction, the timing of the bidding period is everything. If there are few interested parties that week, the highest bid can come in below the value of the home. An estate agent, on the other hand, can look for buyers in a targeted way, spread viewings over a longer period and negotiate with several candidates. How to assess an offer yourself is covered in our article on negotiating an offer as a seller.

An estate agent also takes work off your hands that, with an auction, largely stays with you: photos, presentation, following up candidates and preparing the viewings. In return there is a commission. With a notarial auction you pay no agent's commission, but you do pay the costs of the sale itself.

Some sellers start with a classic sale and only switch to an auction if the home stays on the market for a long time. Others go straight to auction because they want a fixed closing date. It depends on your home, your timeline and how much certainty you want about the minimum proceeds.

Not sure? Then ask a few estate agents in your area to explain their approach and their estimate of the sale price. Through ImmoMakelaarVergelijker.be you can compare estate agents for free and without obligation: you are put in touch with up to three recognised agents from your area.

How to prepare a public sale properly

If you choose Biddit, preparation largely determines the result. A few practical points:

• Choose a notary with experience in public sales. Ask how many online auctions the office handles and how it approaches advertising.
• Make sure the file is complete before the announcement. Bidders drop out when there is uncertainty about planning, easements or missing certificates.
• Make the home presentable. Even at an auction, buyers decide based on what they see during the viewings. Good photos and a tidy home increase the number of bidders.
• Schedule enough viewing slots. The more people who see the home, the better the chance of lively bidding.
• Decide your lower limit in advance. Know the minimum amount you want to receive, so you can decide quickly and calmly if you have reserved the right to refuse the highest bid.

In conclusion

Selling your home at public auction via Biddit gives you a fixed timeline, transparent price setting and a binding bid with no financing condition. On the other hand, the proceeds depend on the interest during a single bidding period, and you have to handle a large part of the presentation yourself.

Want to know what a sale with an estate agent would bring in before you make a choice? Start with a free valuation of your home and then compare recognised agents in your area.