Guide to Buying at Auction
Property auctions allow buyers and sellers to complete deals quickly and easily. The advantage is auctions have fixed deadlines that both buyers and sellers must meet to achieve sales, and time can be anything from 14 days to 28 days from the end of the auction date. Property auctions in the UK cover everything from commercial, residential to building plots to land. So if you are interested in home auctions or auction properties, you are in the right place.
- Auction Properties are not for everyone, though it makes it easier to understand the process before bidding.
- The critical thing is to look through the legal packs and, if unsure, use a solicitor or buyer to answer any questions.
- Be sure of what you are looking for in a property. Once you win an auction, there is no chance of not completing the deal.
- If you register for mailshots and brochures, we will supply information on the latest properties
direct to your email, with brochures available online and in the office.
- The Property Auctioneers lists a complete description of the property that includes photos information. This provides floor plans, lot sizes and photos.
- You may also wish to look through the catalogue available on our website, typically two weeks before the auction date
Property Open Days
- Attending open days allows you to view the property and obtain a clear view of it; it is advisable to contact one of the Team if you have additional questions.
- The Team are happy to help you view the property again if you are seriously interested in an auction property.
Surveys on Properties
- As a property at auction may not be in the best condition, it is essential to consider having a survey or inspection before you choose to bid.
- Make sure you have received any reports before the auction to make an informed decision before bidding begins.
- Solicitors must be appointed at the earliest opportunity.
- Legal packs will need to be supplied to solicitors as soon as possible if you are interested in a particular property; these can be found online.
- They will need to inspect the legal packs for any properties you are interested in and check other information such as searches and planning permission, all available online.
- Legal and advice surveyor assistance should be sorted early on with auction property as it saves mistakes later on when buyers have to exchange contracts.
Financing Your Purchase
- Remember that you will need to pay a 10% buyers premium on the day of an auction at 10% of the purchase price. The exact changes can be found as administration charges, and actual costs are listed online and in brochures. Any property bought will need to be completed within 28 days.
- Bidders or buyers must give a financial adviser, the bank, to finance the project as soon as the project ends. There are advantages in using our finance specialists are experts on auction property.
- Insurance will need to purchase at the point of exchange of a property, and this must be considered to protect your investment.
Strategy Before An Auction
- Bidders are advised to plan their maximum bid before an auction and all the associated costs of an offer, from stamp duty, fees, and the 10% premium that must be paid on the auction date if they are the winner.
- It is so easy to get carried away with auctions, so wet a price in your head and stick to it, as you need to be aware of costs.
- Bidders are advised to check changes to the addendums list, as auctioneers often make lots of changes before an auction for sold lots and alterations to listed properties.
- Early arrival helps you guarantee a seat, as we often have limited space. In addition, it is advisable to be able to see the auctioneer if you wish to bid on a property.
- If you wish to bid, you need to supply various paperwork listed on this website. So please print off and bring everything before entering the auction room.
- The staff at the auction will be happy to help answer questions you have on listing before the auction if you are unclear about anything.
- Bidding occurs by raising your hand during the auction, brochure or a paddle to make the auctioneer aware you are interested in a property.
- On the fall of a Gavel, you have exchanged contracts and are legally bound to enter a sale.
- Winning Bidders will be asked to complete the Memorandum of Sale and then pay the 10% deposit for the property.
- Buyers will be asked to supply 2 forms of ID, including a photo ID and bank or utility bills no older than 3 months. When more than one person buys the property, ID will be required for everyone involved in the auction property purchase.
- When lots fail to sell at auction, feel free to speak to the auction team if you wish to complete the property; we help you secure your auction property and complete the sale with the seller after the auction. The property then will be sold under standard auction rules.
- The The Property Auctioneers team are here to answer all your questions over the phone or via email about any property you would like to consider purchasing.
- Call the The Property Auctioneers team; we will be happy to give details on any property and help you understand any paperwork to allow you to bid at an auction.
- If you wish to sell a property via auction, please get in touch with us directly, and we will send an agent to value your property and discuss the methods of marketing and selling your property.
- Our Team and agent will advise you if your property is suited for auction and how we can turn around selling your property in the shortest possible time. This will include valuing your property and assisting you in the following steps.
- Thank you for allowing us to list the property at auction; we are here to help! The Team will guide you through all the paperwork and answer any questions putting your mind at ease when selling your property.
- The Team’s first steps will be to prepare all documentation to sell your property. This includes searches, Energy Performance Certificate, and other legal paperwork and reports needed to sell your property.
- The Team can work with your solicitor in preparing legal packs and all information needed to allow potential buyers to understand your property.
Selling Your Property
- The Team produces all the marketing material for you to approve online and offline to show your property to potential bidders.
- We will display any marketing material on our website in mailshots and brochures we send out before an auction.
- Do not worry if you spot things wrong; contact us to list these in the addendum before an auction.
Marketing Your Property
- Your property will be featured both on Rightmove and Zoopla and then to our database of members via mailshots and our website,
- Your property will be featured in local papers, online publications, and our database of interested bidders.
- Your listing will be listed through estate agents via our brochure and auction website.
Arranging Viewings of Property
- The Team will show your property with your permission by running house viewings to potential buyers and conducting open house days.
- Included in this service in person or via the telephone, email we will assist interested parties to understand more about your property.
- Excepted properties will include a lot number and be added to brochures, websites and mailshots for the upcoming auction.
Setting a Reserve
- In talking to buyers, we will establish a price for your property to draw interest to your property, and we strongly encourage you to set a reserve price at auction.
- In most cases, we set the reserve price 2 days before the auction, and you must confirm this in writing though this will remain unknown to potential buyers, just yourself and the auctioneer.
- Sometimes we might receive a higher price just before an auction, so please consider this as monies will usually arrive quicker in your bank account if the offer is excepted and happens typically 5 days before an auction.
- Bidder at an auction will often ask questions, and this allows us to make amendments to our brochures before an auction starts.
- The auctioneer, before an auction, will give information on the property before the sale. Then, if the gavel sells your property, contracts will be exchanged generally in 14 days from the time of the auction.
- Paperwork for sale is signed during the auction, and the buyer pays the deposit of 10% for your property.
- You choose to bid online, a proxy or over the telephone and, if you wish, attend the auction.
- The following day after the auction, solicitors must be instructed to handle the sale of the property to completion. The Team will supply a memorandum of sale and the deposit monies (excluding sales costs).
- The dates for completion can be within 28 days or less based on if the buyer is a cash buyer and up to 28 days if the property is bought on a mortgage.
- The last step is to make sure the property is empty unless you have an agreed tenant in place to hand over keys.
On Hand Over
- Once the deal is complete, please suggest to your friends the advantages of selling at an auction.
Selling at auction is the quickest way to sell commercial and residential property, including land. The whole process can be completed in as little as 8 weeks for the monies to hit your bank account.
Success At Auction
In most cases, 80% of lots sell at auction, giving you a higher chance than if you were to list the property with estate agents. Auctions have the advantage of attracting the correct type of buyers for your property.
Legal Rules Auction
Once the gavel falls, you have already exchanged contracts with the buyer. The process now is completing all the necessary paperwork with solicitors and the transfer of monies to the buyer. Although auctions, in most cases, is the quickest way to sell a property, as with traditional estate agents, 1/3 of deals do not reach completion.
In marketing your property, we will feature the property through Zoopla and Rightmove and use our database of potential buyers by contacting them via mailshots and our website. The Property Auctioneers also produces brochures and advertise our auctions online and offline to interested parties and social media.
Open House Events
To increase the number of bidders for your property, we hold open day events that allow potential buyers, bidders to view your property. The open day will enable questions to be answered in person, and we do provide phone support to anyone interested in any of the auction listings
Any property that needs bidders fighting each other for property and allowing auctions both online, proxy, telephone and in-person brings together a wide range of people to bid on your property. In many cases, bidders put a pre-action offer higher than in the auction room, so it is advisable to accept auction rules and exchanges to be undertaken the day after the auction.
n most instances, auction properties will achieve a higher price than the original offer, and if we set a reserve for you, choose the reserve of your property. The critical thing we expect is that you will get the best price on the auction day. This is ideal for probate executors of an estate who wish to get the best price.
If working with estate agents, the listed price is not what the property will sell for to a buyer due to a term called gazundering. Auctions benefit that the price agreed at auction is the price the property is sold for, which is decided at auction.
Timescales to Sell a Property
Suppose you wish to sell your property quickly and add monies to a bank account. The quickest way of doing this is via a property auction. The time scale from start to finish can be less than 28 days, as both parties are legally bound to complete the deposit otherwise lost. So if you need to move quickly, under stress financially, this is the quickest method to sell a property.
Continued Rental Income
Many of our bidders or buyers are looking for rental income and are keen on properties with tenents with auction property. They will often pay more for a property to see immediate rent from their new investment. Several tenancy agreements are in place, and we are happy to explain your options.