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Thinking of selling at auction?

If you are the owner of an unusual property whether it is a residential house or a commercial property or you own some land then auction can be an excellent way of selling it.

The main advantage of auction is that if the property sells on the night of the auction you and the buyer have entered into a legally binding contract and the buyer will pay 10% of the sale price on the night and the balance of the monies 28 days later. You are not involved in lengthy chains and the buyer cannot change his mind just before you sign contracts which can happen by the usual sale method known as private treaty.

The property would only be sold on the night of the auction if a buyer bid at least the reserve price. This is the confidential price agreed by you and the auctioneer just a few days before the auction and is the figure at below which the property cannot be sold. The auctioneer would usually start the bidding at below the reserve price and work his way up to this price and hopefully beyond. This price is not to be confused with the guide price which is the figure quoted on the auction catalogue and gives an indication to interested buyers on the pricing area the property is likely to be in.

Interested in investigating whether this sale method suits your home?

If your property is located in the East Midlands then call the auctioneer:

Richard Watkinson who is based at Newark tel: 01636 611811 e-mail: richardwatkinson@richardwatkinson.co.uk

Richard will call out to see you to assess your property's suitability for a forthcoming auction and provide you with advice on suggested guide price and anticipated sale price.

If your property has a good chance of selling by auction and you are happy with the suggested prices, Richard will explain the procedure and our fees with you. Fees at auction are generally a little higher than selling by conventional private treaty due to the extra marketing costs and proportion of venue hire costs but it can be more than worth it if a higher than anticipated price is achieved and the usual certainty of forthcoming completion monies.

Your property would then be advertised in local and regional publications as well as coverage on nine property websites. We would be happy to accompany all interested buyers around the property or land and provide you with regular feedback on the progress prior to the sale.

You would need to have a solicitor before the day of the auction and he would prepare a contract and apply for the local searches on the property and all of these legal documents would be available in our office for buyers to look at prior to the sale.

Just before the auction you would have a meeting with the auctioneer to agree reserve price and at this stage we would have a good indication of the likely number of buyers for the property based on the number of viewings and the number who had been in to look at the legal pack.

The revserve would be set and this would remain a confidential figure between you and the auctioneer.

On the day it is useful to have yourself and your solicitor present. Your solicitor can then answer any queries raised by potential buyers prior to the bidding. If you are unable to attend don't worry, by law the auctioneer is able to sign the contract on your behalf.

Thinking of buying at auction?

It can be very exciting bidding at an auction, here are some of the facts to help you. e-mail us at auctions@richardwatkinson.co.uk with any other questions.

Bidding

Bidding at an auction is a contractual commitment and before making a bid buyers are advised to consult a solicitor about the legal documents and any special conditions of sale.

When the hammer falls the purchaser (buyer) is deemed to have bought the property and will by auction law have entered into a contract to buy. There is no going back as legally the auctioneer can sign the contract on behalf of the seller and the buyer immediately after the fall of the hammer.

Any financial arrangements such as a mortgage need to be put in place prior to the auction as 10% of the sale price is payable on the night with the balance payable 28 days later.

In the event that you cannot get to the auction on the day, you may discuss special arrangements for bidding by proxy or telephone. (see our on line catalogue for the forms)

Reserve price

Ever wondered why some properties appear not to sell when there were buyers bidding?

Each property is likely to be sold subject to a reserve price. Unless disclosed within the catalogue the reserve price is a confidential figure set between the seller and the auctioneer. It is a figure below which the auctioneer cannot sell the property.

Sold beforehand or withdrawn?

Properties will be offered for sale on the night of the auction unless they have been withdrawn or sold privately beforehand. A seller may accept an offer prior to the auction. If you intend to bid for a particular property to avoid a wasted journey it is worth checking with the auctioneers office that the property is still in the auction. You can of course always put a bid in yourself prior to the auction

Proof of ID

As with so many purchases now days to comply with the money laundering regulations 2004 if you are successful with a bid we will require proof of identity and proof of residence. You will need to bring for example your passport and a current utility bill along to the auction.

Legal information packs

At least seven days prior to the date of the auction legal packs are available for inspection at the auctioneers office.

We hope these facts are helpful, we look forward to seeing you at our next auction.