The Buyers Guide to auction

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The Buyers Guide

Please read this information carefully before bidding

Properties on our online auction are sold under Modern Method terms.

Modern Method 

The successful purchaser is required to pay a reservation fee and sign a reservation form. The buyer reserves the right to unconditionally exchange contracts on the property at an agreed price within 28 days and complete 28 days thereafter. The reservation fee is not refundable.

Reservation Fees

If a reservation fee is due, this will be clearly shown on the specific terms and conditions on the individual property page. You should check if a reservation fee is due before bidding on any property. Sales are subject to a reservation fee which covers our costs, (unlike traditional property transactions where the seller pays the fee). This is £6,000 including VAT, or 3.5% plus VAT of the final selling price, whichever is the greater, and is in addition to it. The reservation fee reserves the property for the buyer and must be paid withn 48-hours of the end of the auction by the successful bidder. If the sale falls through due to an act of the vendor the reservation fee will be refunded in full.

Buyer benefits

A quick & easy bidding process

Buying a property through our auction couldn’t be easier. You can bid from your desk, from the comfort of your home, 24 hours a day, 365 days a year.

A  wide range of properties

Auction provides buyers with the opportunity to purchase realistically priced properties quickly and easily. All of the properties advertised through our property auction are offered by committed sellers at realistic prices. Many properties are vacant with no onward chain.

A secure transaction

The auction method also gives transparency for both buyer and seller as the sale is in the public domain so the fear of gazumping or re-negotiation is completely removed.

You can even buy with a mortgage

Depending on which auction option has been selected, you will have between 28 – 56 days to complete on the property. If you are purchasing through the Modern Method of Auction there is usually enough time to purchase with residential auction finance.

If you are unsure about any of the information provided in this guide, please do not hesitate to contact a member of the Auction Department for further clarification. 

Our Bidding Process

Ok so you've seen a property in our property auction that you want to bid on... Before you start you must be registered to bid. You can register to bid by navigating to the auction home page and clicking on the registration section in the top right hand corner on any page of the our website.

 

However if you prefer you can call the auction department to register or place a bid on your behalf. Our team of property professionals can talk you through the bidding process and answer any questions you may have. 

 

Before placing a bid we strongly advise that you carry out market research and due diligence on any property you are interested in bidding on. Make sure to review any legal documents we will have for the subject property, these will be contained in the Auction Pack that you can download from the property details page. The information contained within the Auction Pack provides more information to help you to make informed decisions on whether or not to bid on the property and at what level. 

 

We recommend that before bidding you visually inspect the property internally and are completely happy with what's on offer. Full terms and conditions are viewable in the bidding section of each property page; please review the terms and conditions relevant to the property you are interested in. If you have any questions you can call the Auction Department where our team of professionals will only be too happy to help. 

 

Starting Bids

 

These are prices published for each property and are the level at which the bidding will commence. Starting bids are for guidance only and are not reserve prices. These prices may occasionally change throughout the marketing period. Please note the reserve will generally be no more than 10% of the starting price. Both the reserve and guide price are subject to change. 

 

Online Auction

 

All of the properties offered for sale on the site are only offered through the online auction. Bidders benefit from being able to bid from the comfort of their own home 24 hours a day, 365 days a year. The auction software provides every bidder the chance to have one last bid as for every bid made in the last 10 minutes, the auction end time will be increased by 2 minutes making sure the highest bid wins the auction.

 

The Online Auction will start with an end date that will be clearly stated on the property details page in the “Countdown Clock”. If the vendor decides to alter the auction date we will make every endeavour to contact all parties who have registered an interest to advise of the changes to the auction timeframes. Once the new end date has been set and all parties have been advised the auction will continue as normal.

 

Reserve Price

 

This is the minimum price that is acceptable to the vendor for selling a subject lot in the auction. We do not publish reserve prices; this figure is a private agreement between the vendor and the auctioneer. This figure is generally no more than 10% in excess of the starting bid. Both the reserve and starting bid can be subject to change. 

 

Bidding Process

 

Once you have made a bid, you will be kept up to date by email and via your auction dashboard which can be accessed by logging into our site. This will keep you up to speed with any properties that you have placed a bid on, or that you are watching. 

 

When counter-bidding on a property you must increase by a minimum of £500 from the previous bid. 

 

If you are the winning bidder / buyer of the property, we will have a number of questions for you regarding your buying position and we will need to obtain some proof of ID, address and also information regarding your funding of the purchase and any mortgage offers or decisions in principle. 

 

All properties will continue to be offered for sale until the end of the auction period unless we are instructed by our vendor to accept an offer prior to the completion of the auction. You must register your interest in the property at the earliest opportunity to avoid disappointment, either by "watching" the subject, or by contacting us directly. 

 

Once an online auction has ended and your bid is successful or if you have an offer accepted over the course of the auction period, there will be a maximum 48 hour period when you will be required to pay the reservation fee/deposit and sign an acknowledgment of reservation form. 

 

The reservation fee is to be paid by bank transfer or card payment. Please note, we will not proceed with the transaction until we are in receipt of cleared funds. 

 

The acknowledgment of a reservation form will be issued upon acceptance of an offer or upon completion of an auction when the highest bid is in excess of the reserve price. 

 

Once the acknowledgment of reservation form has been signed by the buyer and the payment of the reservation fee has been confirmed, memorandums of sale will be issued to the buyer, the buyer's solicitor, the vendor and the vendor's solicitor.

 

Following the distribution of the Memorandum of Sale to all parties the seller’s solicitor will issue the draft contract to the buyer’s solicitor. Once the buyer’s solicitor is in receipt of the draft contract the 28 day period to achieve exchange of contracts will commence. 

 

In the event that a subject property is offered for sale on an unconditional basis, the buyer will be required to exchange immediately following the fall of the hammer or upon close of a successful online auction. 

 

Exchange of Contracts

 

The point at which vendor and purchaser exchange binding contracts with the payment of a deposit, at the same time agreeing to a completion date

 

Completion of Contracts

 

This is the date you must make full payment for the property. The property is now yours and the vendor must handover the keys and vacate the property, congratulations! 

If you are unsure about any of the information provided in this guide, please do not hesitate to contact a member of the Auction Department for further clarification.

Buyer's FAQ

Below are a selection of common queries from our buyers. If you need any further help in understanding the selling terms and process, don't hesitate to get in touch.

Why would someone pay a reservation fee to purchase a property?

When looking to buy a property, most people will look at the total purchase price, and all of the lots available through auction are priced realistically to sell.

Is the bid binding?

We offer two main types of auction, Traditional and the Modern Method of Auction.

Modern Method - The bid obliges the buyer to pay a reservation fee and sign a reservation form. The buyer reserves the right to unconditionally exchange contracts on the property at an agreed price within 28 days and complete 28 days after. This method is suitable for the residential sellers. The reservation fee is non-refundable if the buyer pulls out of the purchase.

Traditional Method - Contracts are exchanged immediately with completion taking place within the next 28 days. Complete security is provided but this method is more suited to the property professional.

How quickly do I have to buy the property?

Depending on which auction option that has been selected, you will have between 28 – 56 days to complete on the property. If you are purchasing through the Modern Method of Auction there is enough time to purchase with residential auction finance.

How do I place bids?

Bids can be placed through the website 24 hours a day, 365 days a year, or if you would prefer to speak to someone to help you register or bid please call our Auction department, who will behappy to assist.  Just be sure to regularly refresh your screen to keep up with the bidding. 

Can I place bids outside of the auction process?

If you would like to place a bid on a property before the auction has finished it will be dealt with on an individual basis. By law we must put all offers to our clients. It is then up to the seller if they want to consider an early bid. In this scenario a non refundable reservation fee would still be required. If you are interested in an unsold lot please contact a member of the auction team.

What is a Buyer Information Pack?

A Buyer Information Pack is a bundle of legal documents prepared before the property is sold via auction. This gives the buyer a chance to view the legal aspects of the property before purchasing. The pack normally includes: property information forms, fixture & fittings forms, official register copies, title plan, local search and water & drainage search, leasehold documents if applicable and auction terms & conditions.

If you are unsure about any of the information provided, please do not hesitate to contact a member of the Auction Department for further clarification. 

Terms & Conditions

Properties are offered for sale under two main methods:

Modern Method of Auction Conditions
Traditional Auction Terms

If you are interested in bidding on a specific property, you will need to check the terms and conditions.

This information is located on each individual property page.

If you are unsure about any of the information provided, please do not hesitate to contact a member of the Auction Department for further clarification.