Appoint Harris and Company for your property auction
Property auctions offer a faster alternative route to buying or selling. We have acquired numerous properties on behalf of clients at auctions. If you are considering appointing an agent to act on your behalf at a property auction, please get in touch with our veteran team of friendly acquisition agents so we can discuss your requirements.
At Harris and Company we have extensive experience with property auctions. As you will learn from the guide below, the list of things to look out for is daunting. That's why we strongly recommend that you appoint an acquisition agent to act on your behalf. We can then provide you with the guidance and assistance to help you achieve your desired result.
TIPS FOR BUYING PROPERTY AT AUCTION
Buying a property at auction is both exciting and potentially profitable. It avoids all of the lengthy purchasing procedures that you usually have to endure. At a property auction, as soon as that gavel falls, that's it - the property is yours. At this point you will be required to pay a 10% deposit and sign an auction contract.
Finance and other costs
You will also need to make your financial arrangements prior to the auction. You must have 10% of the full amount with you on auction day, and you must come up with the remaining 90% within 28 days. If you need a mortgage, it is prudent to have discussed all the financial implications with a bank or building society and have a mortgage in principle arranged prior to the auction.
In addition to the usual legal purchasing costs, most auctioneers will charge a nominal administration fee. It is worth being aware that certain commercial lots will have a VAT element applicable on purchase.
When you express an interest in a property to the auctioneers, there is usually a legal pack available for you to read which your solicitor can have a look at. It could contain covenants or certain legalities which could have potential implications on the value of the property.
Locating a property auction
Speak to a member of our team at Harris and Company who have access to all the major auctions.
As your acquisition agent, once we have identified a property that meets your requirements, we can arrange viewings prior to the auction. It would be prudent to remember that time is of the essence. There are usually four weeks between the publication of the auction catalogue and the property auction, so you have to act fast.
You will often find that the guide price of the auction properties are set relatively low in order to entice bidders, so have in mind a ‘set price’ to pay while taking into consideration the value of the property in the current market.
Attending the auction
When the time comes for the actual auction, good preparation is of paramount importance in order that you feel confident. As your acquisition agent, we can attend the auction on your behalf with or without you.
Formal registration is required at property auctions. Personal identification and a 10% deposit is required upon a successful bid. Auction houses can be pretty crowded affairs, so we would advise arriving in ample time.
As the bidding increases, it is easy to get carried away unless you know what you are doing. We shall guide you to ensure that the agreed bidding figure is not exceeded. It can be very tempting to go over budget, particularly as a lot of time and effort is invested prior to the auction. That is why our clients are happy for us to act on their behalf and bid for them.
If the final bid on a property fails to meet its reserve price (the reserve price being the figure set between the auctioneer and the seller - this is the minimum price the vendor is willing to accept), this doesn't necessarily mean the end of the matter. The auctioneers can still act as agents and are able to do a deal between yourselves and the vendors if a price can be agreed at the end of the lot.
The thrill and euphoria of having a bid accepted and knowing that it is a legally binding deal is just fantastic, and having done the research correctly, you will hopefully end up getting yourself a real bargain.
Buying prior to the auction
Some vendors may wish to sell prior to auction if the offer is right. As your acquisition agent, if there is a property you are interested in, we can explore this avenue on your behalf by speaking directly to the auctioneer who will notify us if there is a deal to be done.
Selling at the auction
We are happy to act as joint agents with the auctioneers. If you require any further information please contact our friendly team of experts.