Auction Guide

Buying by auction

Purchasing by auction can seem intimidating but armed with an understanding of the process it can be a remarkably simple way of purchasing a property.

 Unlike Private Treaty purchase, which is the most common way that property is sold in England and Wales, the inspections and legal work take place first. A buyer has the opportunity to view the property and make any legal or structural enquires at their discretion ahead of the sale taking place. A legal contract will be on deposit for potential buyers to view and there will be several opportunities to visit the property in order to fully assure themselves that they wish to purchase. This assurance is critical as if yours is the winning bid you are legally obliged to purchase the property.

 Having registered with us, the auctioneer and providing the correct AML information, you as a potential purchaser are ready to bid.

The auction will commence with the auctioneer giving a brief overview of the lots available and with a short note about each one at the start of the bidding for that lot. Each Lot will see bidding taking a different course with the auctioneer guiding the process.  Upon the fall of the hammer the sale will be confirmed and legally binding with this effectively seeing contracts exchange. After this point contracts will be signed and a deposit taken with completion usually taking place twenty-eight days after this point.

Selling by auction

Selling a property by Public Auction allows for a defined timeline to be set with a controllable process from the start which can be considered to favourable to vendors in the right circumstances.

In order to implement the strict buying conditions of an auction a legal pack must be prepared by a solicitor ahead of the sale. This allows a buyer to fully understand what they are bidding on and protects a vendor with a clearcut and approved definition of what they’re selling. Buyers may make inquiries on the legal pack so that upon the fall of the hammer they are deemed to be purchasing with full knowledge of the contents of the legal documents.

Importantly a vendor has the ability to set a reserve, a minimum price at which they would be willing to sell. If the bidding does not reach this level the auctioneer puts in the vendors bid and the property is withdrawn from the sale. However, this does not set a limit to how high the bidding can go continue as long as bidders are willing to continue.

With each lot having its own qualities speak with the team about auctions and how the process might suit you.