Good reasons to buy through Auction
Valuation
As a private buyer there are a number of key issues you need to consider before making your first serious bid at a property auction. If you do decide to try your hand at buying a property at an auction, these tips will serve you well:
Guide Price – Remember this is only meant to help you at the outset. It does not represent anything other than a view of where the value may lie.
The Reserve -- All properties are sold subject to a reserve figure, which is a minimum figure which a property will be sold. This figure is confidential between Vendors Solicitor and the Vendor.
Should the reserve price not be achieved the property will be withdrawn from the sale and will usually be marketed thereafter by Private Treaty.
Do still register your interest after the sale with the Auctioneers since there still may be an opportunity to buy after the sale.
Finance – Unlike an estate agent purchase you will need to have your enough funds to pay your deposit on the day of the sale (usually 10%) payable by cheque or bankers draft to Dawsons. You must also ensure that your mortgage is in place as you will have to pay the balance usually within 28 days.
Buyers Premium – If you are successful on the day you will also require a separate cheque made out to Dawsons for the buyer’s premium of £150 plus Vat which is a total of £180.
Contracts – If you are the successful bidder you will be required to exchange contracts immediately
after the auction.
Legal Pack – The legal Pack is prepared by the Sellers Solicitors and contains all the documents including The Contract, searches, land registry documents, special conditions of sale and all paperwork necessary to the sale.
Legal Packs can be accessed through the Dawsons Website - Click here
Survey - We would always recommend that you have a survey undertaken to ensure that the property is sound. If you are taking out a mortgage your lender will wish to have their surveyor assess the property prior to the sale date.
Solicitor – You will need to be legally represented and you should notify your solicitor of your interest if it is your intention to bid at Auction. Your solicitor should examine all documentation on your behalf prior to the Auction.
Making a bid – Ensure you arrive on time and that bids are clearly made. This is done in person or by instructing someone to bid on your behalf, generally your solicitor or another professional advisor.
Unable to attend the Auction? –
• Telephone Bid - If you are unable to attend the auction we can arrange a telephone bid where a member of the auction team will contact you just before the auction starts and they will take instruction from you during the bidding.
• Proxy Bid - If you don’t want to be directly involved in the biding process you can request that the Auctioneer bid on your behalf for a certain amount.
For either of the following procedures please contact the Auction Department at least a week before the auction date.
Visit an auction – We would always advise that you attend an auction to ‘get a feel’ for the auction process itself. It is also a useful opportunity to perhaps ask the auctioneer any questions you may have. If you have further concerns please contact the Auction Department.
N.B. All bidders are reminded that bids are accepted on the basis that you are deemed to have first read, and understood, the auction contract and all supporting legal documentation. The auctioneers make no warranty as to the completeness of documents supplied – bidders should verify with the vendors solicitor that the pack they have received is complete and accurate.
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