What to do if you are considering selling at auction
- Firstly, contact The Property Auction House and speak to a member of our team.
- We will require all the relevant information about the property and your circumstances.
- One of our team will arrange a visit to the property and provide a free valuation.
Happy to sell at Auction?
- Congratulations! you have decided to sell through The Property Auction House online auction platform.
- We will now request your signature on our auction contract, 2 forms of identification and the name of your solicitor.
- We will need access to the property in to complete our sales details in readiness for marketing.
- We will contact your solicitor and request they prepare all the relevant documentation for the legal pack.
- This will be uploaded to the website for all interested parties to access.
- Your property will be uploaded to the online portals.
- Your property details will be sent out directly to our extensive list of registered buyers and investors.
- Your property will be promoted through the website, email marketing and our social media pages, including Facebook and Instagram.
- All interested parties will have access to view your property.
- A member of staff will be present at all viewings to answer any questions and advise purchasers on the auction process.
- We will update you accordingly with any relevant feedback from appointments.
- This reserve is the minimum figure you would be hoping to achieve.
- The property cannot sell for any less than this price.
- This figure is totally confidential and never revealed to interested buyers.
- Once we agree a suitable reserve price for your property, we will require a signed reserve letter prior to the start of the auction.
- In accordance with RICS recommendations the reserve figure is generally set at 10% above the guide price.
- Whilst marketing we may receive a pre-auction offer for your consideration.
- If you wish to accept a pre-auction offer, it would be subject to the same auction conditions, meaning you still have the speed and security of the auction sale.
- The start and finish times are clearly advertised on our website with a countdown feature.
- Once the online auction ends, the buyer will sign the contract and pay their deposit.
- You do not have to watch the auction, but if you wish to be part of this exciting experience you can watch it live through our website.
- After the online auction ends, we will provide your solicitor with the relevant documentation for completion.
- Standard completion takes place 28 days after exchange (unless stated differently in the Special Condition of Sale).
- You must ensure the property is vacant, unless sold with tenant in situ.
- Please cancel any services and arrange for any additional keys to be left at the property or handed to one of our members of staff.
What are the benefits of Auction?
- Auctions work particularly well for homeowners or investors who need a quick sale, executors who are required to settle an estate, or those who simply want the security of a guaranteed sale.
- We will encourage all interested parties to come forward to bid to ensure the best possible price is achieved.
- The buyer is legally committed, no further negotiation is allowed, and a binding legal contract is formed on the fall of the virtual gavel.
- When you sell your home through an auction the auction staff will conduct the viewings.
- We can sell your property even if it has certain unusual characteristics or negative attributes.
Online Property Auctions have proved to be a pioneering and innovative platform for buying and selling property. With all the benefits of a Traditional Auction such as speed of sale, transparency, and no risk of gazumping. The Online Auction has the added advantage that you will be able to bid on your computer, tablet, or mobile phone in the comfort of your own home.
In recent years we are seeing a new group of Auction buyers. It is no longer the domain of just the builders and larger developers. We are seeing many more private investors looking for a full range of opportunities. Purchasing a DIY project, holiday home, Buy-To-Let, Serviced Accommodation, a property towards a pension pot or simply looking to support their children purchasing their first property.
Property Auctions have never been so readily accessible and available to everybody. The key to auction success for a buyer is preparation.
Why is the auction process different?
The key difference of buying at auctions is that when you make your offer, it is a live bid in the auction. If you are the winning bidder at the end of the auction, contracts are exchanged upon the fall of the virtual gavel.
As the successful purchaser you are now legally bound to buy from that point. You will pay your 10% deposit within 24hrs, and the standard completion timescale is 28 days after exchange, unless stated differently in the Legal Pack.
At completion you will pay the balance of the purchase costs, so you need to complete all your checks and enquiries prior to bidding. If you do require a mortgage or other finance to buy, it is essential that you ensure all your funding is in place.
Whilst you are bound to complete upon the winning bid, you have the comfort that the seller is similarly bound. There is much greater certainty when compared to an offer through a traditional estate agent.
- Purchasers are asked to book viewings by contacting The Auction Property House office number.
- We will require personal details, your full name, address, telephone number and email address.
- We require a record of purchasers so that we can contact all interested parties once we have completed legal packs, set auction dates, and advise of any delays or cancellations.
Please be advised for safety reasons there may be properties where viewings are not permittable.
- We strongly recommend that if you are financing the purchase with a mortgage, you ensure you have arranged a survey with the relevant mortgage provider, and they provide your mortgage offer prior to the auction.
- If you are paying in cash, we also recommend a survey to ensure the property has no hidden problems.
Offers prior to auction
- Any purchaser can submit an offer on a lot before the auction.
- If the offer is suitable, it is sent to the seller for consideration.
- Should your offer be accepted we will require the Legal Pack for the lot to complete the process.
- If an offer is to be considered, the purchaser needs to be in a position to pay the 10% deposit and the Buyers premium which will be stated in the marketing material.
- Only then, will the property be withdrawn from the auction.
- A legal pack will be prepared by the solicitors acting for the seller.
- The legal pack contains relevant legal information to allow buyers to do their due diligence.
- Information should include, the contract with any special conditions of sale attached, title documents, searches, planning consents, property information forms, fixtures and fittings list and any additional documentation pertaining to the sale of the property.
- All interested parties obtain a copy of the legal pack by downloading via a link to the individual property or lot on the website.
- You should ensure that you thoroughly read and understand the legal pack and any other associated documentation available online.
- We will ALWAYS recommend any buyers take legal advice.
- Finally, understand the contract you are entering into and the financial commitment you will be liable for, should you be the successful bidder.
- Every property being sold will have a legal pack, without one the property cannot be sold.
Registering for our Online Auctions
- All purchasers need to create a passport with the EI group this process is accessible though our website.
- Please note, the first time you register you will be asked to read and accept the online ‘Terms and Conditions’.
- To comply with the law, all bidders will need to upload proof of their identification. This will include photo ID (driver’s licence or passport) and recent proof of address (dated within the last 3 months). These checks have to be completed for anti-money laundering regulations (AML).
- All bidders need to complete the payment page before they are able to bid. You will need to register a credit or debit card and the ‘Holding Fee’ will be held until the auction finishes. This figure will vary depending on the lot so you will need to ensure you have enough funds in place.
- Once you’ve created an account you will gain access to the legal packs and you will be able to watch the lots you are interested in.
- This will require input from you so please make sure you get it done within the deadline for online registration.
- Most lot are sold subject to a reserve price.
- The seller is only obligated to sell the property once the bid amount meets or exceeds the reserve price.
- This is a confidential figure between the auction company and the seller.
- In accordance with RICs recommendations the reserve is generally set at 10% above the guide price. For example, a property with a guide price of £50,000 would have a reserve of £55,000. This is the minimum price that the auctioneer is authorised to sell for on the day.
How can I bid?
- Once bidding has opened all the bidding takes place online.
- You will be able to place bids in line with the pre-determined bid increment levels.
- Every time you submit a bid you will be clearly shown if your bid was successful.
- A full list of all bids is displayed on-screen at all times.
- Bids can be submitted throughout the duration of the bidding period when until it reaches the auction’s scheduled end time.
- If a bid is placed within the final 60 seconds of the auction then the time will be extended by an additional 60 seconds this is known as the ‘bidding extension window’.
- If a bid is placed in the ‘bidding extension window’, the clock will immediately reset to 60 seconds again.
- The auction will only finish when the entire 60 second bidding extension window passes without a further bid being placed.
- If you do leave your bid until the final few seconds, your bid may not be received by the platform server until after the closing time, and therefore will not accepted.
- At the fall of the virtual gavel, the holding fee will be debited from the winning bidders credit or debit card.
- All the unsuccessful bidders will have their holding fees released. Please be advised that this can take up to ten working days to show on the account depending on the card provider.
(Please note this may place your account in overdraft if there are insufficient credit funds available).
- If you know the maximum amount that you want to bid and do not have the opportunity or do not want to sit at the computer during the bidding process, you can enter a proxy bid.
- You can pre-set a maximum bid that is hidden on the website.
- The system will automatically bid on your behalf to maintain your position as the highest bidder.
- If your proxy bid is placed during an extension, the extension will reset to 60 seconds.
- The system will automatically enter bids for you in the applicable increments to top other bidders, up to your maximum bid.
- Be aware that we offer property for sale by immediate exchange of contracts. This means that when the virtual gavel falls it constitutes an exchange of contracts between the buyer and seller.
- The holding fee will be paid automatically from your chosen card.
Be aware that it can take anything from a few hours up to several days for the hold to be released (dependent on the card issuer).
- You have 24hrs to pay the 10% deposit.
- A Buyers premium is only payable if a property is sold out of auction. The cost of the Buyers Premium will be stated on the marketing material for that particular property.
- This payment is required with the 10% deposit and can be paid by Bacs, account information will be provided.
- The sellers’ solicitors will confirm once completion has occurred and they will advise that we can now release the keys.