Here are some of the questions which are raised from time to time when prospective purchasers are considering buying a property at auction. We have listed a brief resume of questions and answers to assist you in your decision to buy at auction.

Firstly; buying at auction secures you in the knowledge that:

If more than one party is interested in a particular property, an auction demonstrates free and fair competition enabling the purchaser to buy the property at a price that is competitively achieved against other known bidders.

If you are the successful bidder you are assured that the vendor cannot withdraw and that completion of the purchase transaction will usually take place within 28 days of the auction (unless otherwise stated).

WHAT DOES THE SALE BROCHURE TELL ME?

The sales brochure is prepared to give you a brief description of the property which include details on how to view.

SHOULD I INSPECT THE PROPERTY?

It is essential that you view and know as much as you can about the property prior to the auction. Local Searches and copies of further legal documentation can be obtained from the Auctioneers or direct from the Solicitors representing each vendor (as named in the brochure).

SHOULD I READ THE CONDITIONS OF SALE?

Yes, you should read and understand the conditions of sale prior to the auction. If you do not understand any part of the conditions of sale, you should ask your Solicitor for advice.

SHOULD I HAVE A SURVEY CARRIED OUT?

It is recommended that you have a survey carried out, particularly if there is anything you are unsure of or have doubts about. The Survey inspection should be arranged with the Auctioneers and should be carried out well in advance of the auction day.

DO I NEED A MORTGAGE PRIOR TO THE AUCTION?

If your purchase is to be supported by mortgage finance then YES you need to have a firm offer of mortgage prior to attending the auction.

DO I NEED A BUILDING SOCIETY SURVEY?

A valuation carried out by the building society is required should you need a mortgage. The Auctioneers have a qualified financial consultant, who can advise you in this matter, should you request it.

WHAT IS THE DIFFERENCE BETWEEN A GUIDE PRICE AND A RESERVE?

The guide price is published to give you an indication of the price that the property is expected to sell for. A reserve price is the lowest price that the vendors will accept. This is agreed between the vendor and the Auctioneer usually on the day of sale. Unless otherwise stated all properties entered into the auction have a reserve price. OTHER THAN IN THOSE CIRCUMSTANCES WHERE A RESERVE IS PUBLICLY DECLARED THE RESERVE IS CONFIDENTIAL AND IS NOT DISCLOSED TO ANY INTERESTED PARTY.

WHEN DO I PAY FOR THE PURCHASE?

It is imperative that you have all finances ready for the day of auction. Should you be the successful bidder a 10% deposit will be required on the day of sale. This may be paid in cash, by personal cheque or by building society cheque. The balance of monies will be expected upon completion of the transaction.

DO I NEED A SOLICITOR IN ATTENDANCE?

Not unless you wish so. It is wise to notify your solicitor of the auction and show him the auction brochure along with any other information about the property you are interested in.

WHAT DO I NEED ON THE AUCTION DAY?

To be in receipt of any mortgage offer required. Certainty that you wish to purchase at auction, and an idea of the figure you are prepared to bid to, and most importantly your 10% deposit.

HOW DO I BID?

Make sure you signal your bid clearly. The Auctioneer will then acknowledge your bid. The final bidding price will be repeated three times before the fall of the hammer.

WHAT IF I AM THE SUCCESSFUL BIDDER?

If you are the highest bidder at the fall of the hammer, you are the successful purchaser. You are now bound by contract to buy the property. The Auctioneer will ask you to come forward at the end of the proceedings to sit with the acting Solicitor, pay the 10% deposit and sign the necessary contract papers. All documentation will then be forwarded to your Solicitor. You cannot take possession of the property until completion of the transaction – 28 days time. In certain cases, if all parties are willing, the completion date may be brought forward.

DO I HAVE TO INSURE THE PROPERTY?

Yes, you must make sure you are covered from the date of the auction.

WHAT HAPPENS IF THE PROPERTY IS WITHDRAWN?

Please register your interest with a member of staff. Properties that are withdrawn because they do not reach the reserve price, could possibly be sold after the auction. Please note that in most cases auction rules will still apply.

If you would like more advice, or indeed have a property that you would like to offer for sale by auction, please do not hesitate to contact any of our auction staff.