The Auction Process
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Why use property auctions?
Property auctions can help the buyer and the seller of property to make a good profit. They can buy and sell to the best of their advantage and have the satisfaction of getting the best out of the deal.
Auctions offer an opportunity to sell property with a higher degree of certainty than the more traditional route – which can often lead to unwanted delay, frustration and stress. If property has not sold on the open market – for whatever reason – then the auction route may well be the answer you are looking for. It is the fastest route to a successful sale.
If you’ve never take part, find an auction and go along – it’s exciting.
When you’re ready to consider active involvement, here’s some tips to bear in mind.
Benefits for buyers
* The advantage of having certainty with a fixed completion date
* The knowledge that when the gavel has fallen, there is no chance of being gazumped by another buyer
* Opportunity to really 'eye-ball' the competition
* Professionally run sale ensures fairness and commercial integrity
Benefits for sellers
* Speed of sale - exchange contracts on the fall of the gavel, with no completion in 20 working days
* No chains, no negotiation, no gazumping or gazundering, no disappointments from fall-throughs
* Engage with many serious buyers with cash and finance: no time-wasters
* The transparent process ensures all interested parties have the opportunity to bid with the true and best 'market price' achieved on the day.
What properties are suitable for auction?
* Residential or commercial property that is looking for a quick sale
* Land - with or without planning permission
* Properties likely to attract keen competition because of their uniqueness, attraction and location
* Ground rents, probate & executor sales, or repossessions
* Properties with development potential, damage or in need of refurbishment
* Flats with short leases or above commercial premises
* Difficult to market/value properties - e.g. redundant pubs, toilet blocks, theatres, schools, chapels etc.
* Properties owned by Charities or held by Trusts
Before the auction
Don't forget that at auction the whole buying process is squashed into a few minutes rather than weeks or months, so our advice at is to read the guides and blogs on makeoffer.co.uk and attend an auction first to see how they operate. Doing your homework really pays off!
Contact the auction house via this site and request their catalogue or download from their web site. Many auction houses hold regular auction sales with a catalogue printed some weeks in advance. You can also subscribe to catalogue mailing lists.
Arrange a viewing of the property - buying unseen is a risky business. Research the property thoroughly using online resources, local estate agents, ask local residents and carry out the usual property/land searches. Go into the auction room with all the information.
Make sure that you have read and understand the conditions printed in the catalogue. Always get legal or professional advice from a solicitor and, in appropriate cases, a chartered surveyor.
Make financial arrangements to ensure you have a 10% deposit ready for payment on auction day, when you sign the contracts. Again check exactly what your auctioneer will accept for instance cash is a stumbling block and you cannot leave the auction room until this payment is made. Also in most cases, and again check each lot to make sure of completion dates, you will need to complete in 28 days so make sure you have the balance of funds available as well.
Be aware that buying at auction is a binding commitment and carries the same legal implications as a signed contract by private treaty. In most cases, auction offices have copies of legal documentation provided by the seller's solicitors which can be sent to you.
On the auction day
Check with the auctioneer or in the catalogue what forms of identification they require to process the paperwork and take it with you. Don't forget to bring your method of payment for your 10% deposit and if the auctioneer requires you to register prior to bidding check that you have done this in advance or arrive early.
On arrival, get a copy of any addendum sheet. These are usually available from the auctioneer's desk, reception and often already distributed around the auction room. Any changes to the auction lots are listed here. Check on the lot or lots that you are interested in.
When you make a bid, make sure that you do so with a clearly visible gesture. The auctioneer will often have back up staff around the room looking for bids that may be missed, but make from the podium but make yourself as visible as possible. Remain calm and stick to your pre-agreed purchase price!
On occasion a property will fail to meet the vendors reserve price, if this happens the auctioneer will take details from those bidding and see if there is not a deal to be done after the auction concludes. To this end, if it is the lot that you were interested in make sure that the auctioneer’s assistants have your details immediately after the lot and follow further instructions.
Buyers often forget that once the hammer falls, the purchaser is liable for the insurance for the property so it is a good idea to have insurance ready or quoted for prior to the auction. It should be your first call after the auction!
Who are Network Auctions?
With over £ 80 million of property sold to date, Network Auctions is the fastest-growing national property auction group. Its members are established estate agents, auctioneers and property specialists around the country that offer you that essential local knowledge, expertise and track-record combined with Network Auctions national visibility and presence.
The Network Auctions member nearest to you knows the local property market well, so is best placed to advise and service you in seeking to sell your property. They will arrange to value the property and take care of all the legal, statutory and commercial requirements for the sale. The property will then be offered for sale at Network Auctions next auction, which is marketed on a national basis – hence drawing in much larger buyer interest and attendance – with the potential of obtaining a better end result.
To find out how to sell your property at auction and who your nearest Network Auctions member is, visit www.networkauctions.co.uk or e-mail auctions@networkauctions.co.uk.
For firms wishing to find out more about becoming a member of Network Auctions, please contact Mark Limebear on 020 7871 0420 or e-mail: ml@networkauctions.co.uk.
