This is called the 'type of auction'. A property will be sold either via a Timed Auction where you bid online during the time it is open for, or via a Live Auction Event (LAE) which will be held 'in room' or Live Stream. Even at a LAE, you can bid online, via the telephone, by proxy or potentially in person.
With a private treaty, all legal documents and searches are completed after the sale price is agreed. In an auction sale however, these documents are prepared before the auction and bidding opens. This is to allow the bidder time to complete due diligence and bid with confidence. You should seek advice from your solicitor regarding the content of the legal pack. The documents can be downloaded for each property after you have registered.
In order to download the legal pack and bid on a property, you must register your details. This will include ID checks and providing your bank/card details as funds will be required at the close of bidding if you are the successful bidder.
The guide price gives the potential bidder an idea of how much the starting bid may be. It is only a guide and does not indicate the value of the property. The reserve price is the lowest amount we can sell the property for and is usually within 10% of the guide price. The reserve price is set by the seller and is not disclosed.
Anybody can register and bid to purchase a property at auction. Whether you are a first time buyer, buying your next family home or a property investor. You need to have funds in place to pay the Buyers Premium, deposit and be able to complete in the set time frame. Our mortgage and finance partners are available and can assist you.
It is possible to enter a pre auction bid. Contact our team and we can discuss options available. Some sellers may consider accepting an offer before the auction.
The Buyers Premium of 4% +vat (minimum of £6000 inc of vat) is paid by the successful bidder on close of the auction. This reserve the property for the time frame until completion (subject to auction conditions). It does not form part of the purchase price and does not come off the cost of the property. Bidders need to factor this cost into their budget before bidding.
On the close of the auction, the successful bidder is legally obliged to complete on the sale of the property. Part of this is to pay the Buyers Premium. If you purchased a property through a Traditional Auction, the deposit is also now due and you must have the funds available.
When the auction ends, depending on the 'method of auction', you have 28 or 56 days to complete the purchase.
This is a quick process and it is advisable to speak to our mortgage or finance provider before the auction.
We work closely with trusted partners who can advise you on the most suitable rates for either mortgage or bridging finance (based on your circumstances).
We are also required to establish that you are in a position to fund the purchase as well as identify the source of funds as per the Anti Money Laundering Regulations (AML regs of 2022).
You will lose the deposit and Buyers Premium. The seller may also wish to pursue the matter legally as at the close of auction, you are legally bound to purchase the property as per the Conditions of Auction.
Our rates are totally transparent. There is a Buyers Premium of 4%+vat (minimum £6000 inc of vat) of the closing bid agreed price paid directly to The Auction Company. This does not form part of the purchase price.
