Posted on 20th June 2023
Sellers
What are the first steps?
Speak to your estate agent first and they can refer you to the auction company.
Unconditional vs conditional
There are two types of selling options:
- Unconditional – this is the most secure and quickest way to sell. You include a legal pack for potential buyers and contracts exchange immediately with completion within 28 days.
- Conditional – there is no need to provide a legal pack. Buyers will pay a non-refundable reservation fee and must complete within 56 days.
At the auction
There will be an agreed reserve price on your property and the highest bid above this figure will be accepted. A reservation fee and deposit is taken from the buyer and their details will be passed on to your solicitor to complete the sale.
What happens next?
A member of the auction team will be in touch. A deposit will need to be paid to guarantee you the exclusivity on the property. Completion must take place within 28 or 56 days.
How much does it all cost?
Sellers don’t pay any fee to the auction company. They only need to pay for their solicitors’ fees, payable on completion, and all listings are no sale, no fee.
What are the advantages?
Auctions offer buyers a few clear advantages:
- Security – once your bid has been accepted, the reservation fee paid by the buyer gives you the security they’re unlikely to pull out. There’s no commitment like this when selling normally. This results in a less than 1% fall-through rate.
- Speed – with fixed completion dates, you won’t need to wait for months on end. You’ll know when the property will be completed from the beginning.
Buyers
What are the first steps?
Choose your auction property and view the video tour online, if there’s one available. Then arrange an in-person viewing. You need to be registered and authorised in order to place a bid at the auction – you can do this through the auction company who will verify you’re in a position to purchase the property. If you want to have a survey carried out, this can be arranged before the auction.
How do I make a bid?
Before you make any bids, make sure you read the terms of sale and download and read the legal pack first (this includes things such as local searches). Once you’ve done this, you ... you can bid online, in person or over the telephone. Normal auction cycles are 28 days so you’ll have plenty of time.
What happens next if my bid is accepted?
A member of the auction team will be in touch. A deposit will need to be paid to guarantee you the exclusivity on the property. Completion must take place within 28 or 56 days.
How much does it all cost?
As a buyer you’ll pay a fee of 5% + VAT (minimum of £5000 + VAT), as well as a reserve fee or deposit once your bid has been successful. There will then be solicitors’ costs and the cost of a survey (if you want or need one) and of course, don’t forget the cost of the property itself!
What are the advantages?
Auctions offer buyers a few clear advantages:
- Security – once your bid has been accepted, nobody can gazump (come in with a higher offer at a later stage) you.
- Speed – with fixed completion dates, you won’t need to wait for months on end. You’ll know when the property will be yours from the beginning.