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.
Viewings – Most auction properties will be viewed as block viewings with other parties. Due to the condition of some auction properties we would advise all prospective purchasers to take caution as all viewings are conducted entirely at your own risk. It is essential that if you wish to view the loft that you bring a ladder and occasionally torches will be required as the electricity is often turned off.
Catalogue – Full details of properties or land are available in the auction catalogue. It is the responsibility of all purchasers to be satisfied with the boundaries, location and condition of all the lots before the auction. The photographs, maps and plans are only to aid identification and the plans are not to scale.
Guide Price – A guide price is to allow a purchaser to decide whether to pursue the property, 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 guide price is not the reserve price and both these figures are subject to change before or even on the day of the auction.
The Reserve – All properties are sold subject to a reserve figure. This is the seller’s minimum sale price, the auctioneers cannot sell below this amount. The reserve figure cannot be disclosed as it is confidential between the auctioneer and the vendor. Should the reserve price not be achieved the property will be withdrawn from the sale. Do still register your interest after the sale with the Auctioneers since there still may be an opportunity to buy.
Legal Pack – The legal Pack is prepared by the seller’s solicitors and contains all the documents pertaining to the sale of the property, this includes contract, searches, land registry documents, special conditions of sale and all paperwork necessary to the sale. Energy Performance Certificate (EPC) will be included. It is also advisable to read the ‘Special Conditions of Sale’ as some lots may carry additional charges. Legal packs can be accessed through the Dawsons Website - www.dawsonsproperty.co.uk or are available to view in our Swansea Showroom at 11 Walter Road, Swansea, SA1 5NF.
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 Auction date.
Solicitor – We would recommend that you notify your solicitor of your intention to bid at the Auction and we strongly advise that your solicitor should examine all documentation on your behalf.
The Day of the Auction – We will always suggest that you arrive early to allow sufficient time to register. The legal packs are also available for inspection in the auction room.
Making a bid and if your Successful – Making a bid is done by yourself in person or by instructing someone to bid on your behalf, generally your solicitor or another professional advisor. Ensure you arrive on time and that bids are clearly made to the auctioneer. If you are successful then a representative of Dawsons will escort you to the legal desk to sign the contract, you will the pay the 10% deposit and buyer’s premium (£250.00 + VAT).
Deposits and Buyers Premium – If you are successful on the day you will be required to pay a 10% deposit and a buyer’s premium of £250 plus VAT. These payments can be made by a BACS transfer, debit or credit cards (charges will apply) or a cash payment of £5,000 (maximum). You must also ensure that the remainder of your funds are in place as the balance is usually paid within 28 days
Proof of Identification – In accordance with Money Laundering Regulations buyers will be required to provide proof of identification before completion.
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 vendor’s solicitors that the pack they have received is complete and accurate.
For further information please contact our Auction Department on 01792 478903/04