PROPERTY AUCTIONS

Public auctions can be an excellent alternative, and often successful method, of selling and purchasing both residential and commercial property.

From the seller's point of view, after initial pre-auction marketing during which an average market level can be gauged and thus a reserve figure decided between auctioneer and client, the property is offered for sale and sold to the highest bidder over the reserve price. Experience shows that the sale figures achieved at auction often exceed the level expected by other sales channels. At the fall of the hammer a binding contract is enacted (subject to contract therefore does not apply) and the successful bidder must pay a 10% deposit in the auction room. The conditions of sale will state the required completion time - commonly 28 days. Normal sales commission rates apply and most auction houses will require a non-refundable catalogue entry fee.

From the purchaser's point of view, the property is advertised several weeks ahead and legal packs, with all the searches/questions and answers that your solicitor would normally ask, are prepared. It is always wise to inspect the property and do your research beforehand while seeking professional advice where necessary. Should your bid be successful on the day of the auction, you will have a legally binding agreement for all parties with a definite completion date.

Clear, professional advice is just one phone call away.

Call Adrian Cotton, Chartered Surveyor, on 01932 821663.