10 Step Guide to Buying at Auction
Auctions can be a highly effective and transparent way of purchasing property quickly, without the fear of being gazumped. But there’s more to property auctions than simply turning up and landing yourself a bargain. Here's our guide to Buying Property at Auction.
First things first; prospective auction bidders should be prepared. Do your research on the area, property and your available finances. You should also be aware of certain legalities which are outlined in the RICS Common Auction Conditions document.
Prior to Auction
View online catalogue and property details, including legal documentation for the property which will be prepared by the vendor’s solicitor. Where possible the legal packs will be available to download from our website or hard copies are available for inspection at the auction event. If you are unable to attend the auction, you can register for one of our out-of-room bidding options. Learn more about our bidding options by clicking the link below.
Register Your Interest
Once you have checked the auction listing and viewed the available property information, you should register for an online account. This enables you to check the available viewing schedule and confirm your place for the properties you are interested in bidding on. You can also set up an alert to notify you of any amendments to properties, or if we are instructed on any other similar properties. You may also wish to instruct a solicitor and commission a survey on a property of particular interest.
You should ensure that you have suitable finance in place to fund your purchase, as a legally binding contract is formed at the fall of the Auctioneer's gavel and a deposit will need to be paid. You should liaise with your finance company to ensure that they can meet the prescribed timescales for completion. If you need any guidance on finance, please contact us on 0345 505 1200 as we may be able to offer assistance.
Properties may be withdrawn or sold, or have the guide price reduced, at any stage of the auction process - so interested parties should monitor our website regularly for updates. If you are interested in a property you can always submit an offer before the auction date. You can also register your interest in withdrawn properties too, as they may become available in a future auction.
At the Auction
Our auctions can be attended by any person wishing to do so. However, in order to bid on a property, you will need to register and verify your identification. Once the registration form has been completed you will be presented with a paddle for the purpose of bidding for a property. You’ll need two forms of identification, such as a passport or utility bill, and proof that you can afford the 10% deposit. If you are acting on behalf of another party, you will be required to provide the documents detailed above for both yourself and the actual buyer, as well as providing a valid letter of authority from the buyer authorising you to bid on their behalf. If you are acting on behalf of a company, you will need the above documents along with written authority from the company.
Making a Bid
Prior to each specific lot the Auctioneer will announce the lot number and may refer to any last minute revisions to the property details. Once the Auctioneer has invited offers you may bid by raising your paddle and it is your responsibility to ensure that the Auctioneer has acknowledged your bid. The Auctioneer is only authorised to sell the property on or above the vendor’s reserve price.
The Fall of the Gavel
Should you be the highest bidder at the fall of the gavel, you have successfully purchased the lot and a legally binding contract will have been formed. The Auctioneer will ask for your paddle number and one of our team will bring you a sales slip to sign. You will also be required to pay a deposit. If the property you were interested in did not achieve the vendor's Reserve Price, it is advisable to speak to one of the Pugh team - as you may still be able to secure the property.
Anti Money Laundering
The Anti Money Laundering Regulations cover the activities of service providers including Estate Agents and Auctioneers. In line with banks, IFAs and other providers of professional services we are required to seek proof of the buyer's identity. All successful bidders must provide proof of identity and address to the Auctioneers immediately after the fall of the gavel.
Exchange of contracts
Once the deposit has been paid, you will be asked to complete two copies of the sales memorandum. One copy will be retained by us and issued to the vendor's solicitor, and the other copy will be issued to you at the contracts desk. You should give your copy to your solicitor who will then proceed to completion within the specified time.
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