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Guide to Buying and Selling a Property at Auction >>

We are pleased to announce that Auction House Goodfellows is the latest addition to the Goodfellows group. Strategically based in Sutton, Surrey we will be covering all areas but specialising in South London & Surrey. Our plan will be to work with introducer agents in towns where we do not have a Goodfellows branch office, and to introduce a wider mix of properties into our catalogues.

Auction House is programmed to be the fastest growing auctioneers both regionally and nationally. The concept of a strong brand identity, proven work practices and a co-ordinated network of auction rooms across the country is a powerful platform. With the support of capable auctioneers and successful independent Estate Agents we are building a genuine alternative to the London based major players. Eventually it’s planned to have a central marketing division, so your property will get not only coverage from your local auctioneer but will be distributed through, newsletters and email marketing to all potential buyers from the centralised mailing list.

We believe this is the way ahead for forward thinking independent auctioneers

Auctioning property has a number of advantages for both the buyer and seller. The main one is that much of the trauma and delay associated with property transactions is eliminated, as the dates of both the auction and completion are fixed.

Secondly, the auctioneer has the authority to sign the contract on behalf of both the buyer and the seller, with the contract becoming binding upon the fall of the gavel.

From the sellers point of view, if there is likely to be strong competition between would be buyers this method of sale is an efficient way of achieving the best possible price.

From the buyers prospective, the seller is committed to sell upon the fall of the gavel therefore eliminating the dreaded sales chain, which if anybody has bought property via the private treaty market, will recognise has a regular habit of collapsing at the last minute.

As with making any major decision your choice of Auctioneer is very important. So how do you choose? Firstly by studying your local publications, your auctioneers will regularly advertise their sales and results. Check the national auctioneers database on the internet, this site has a wealth of background information statistics such as number of lots sold each year, the totals realised etc their website is www.eigroup.co.uk. Look around, the most active auctioneers’ flag boards are a great barometer of their success.

Once you have made your decision you will need to go through the following procedure.

• Arrange for the auctioneers to meet you at the property to carry out a free no obligation market appraisal. At this meeting you should make sure you understand the auction process and the costs involved such as commission fees and expenses.
  

• Discuss with the auctioneers the reserve price, this will be agreed with you initially. This is the minimum at which the property can be sold for; obviously the auctioneer’s intention is to achieve the best possible price for you. The auctioneers will explain the use of the guide price, which is given to anyone interested in the property and its relation to the reserve price.

• Obtain written confirmation of the’ Terms of Engagement’, read carefully and sign where required.
  

• You will need to instruct your solicitor to prepare the legal pack. The auctioneers will liaise with them directly.

• You do not need to attend the auction, as the auctioneer will sign the sales memorandum on your behalf and complete the legal formalities.
  

• As with private treaty sales, you will need to vacate the property on completion.

So if you are considering buying a property at auction, it is a fairly straightforward and painless method but be on your guard. Always remember to do your homework and investigations before the day, most importantly if you are uncertain in any way don’t bid.

• Make a thorough inspection of both the property and the neighbourhood. Don’t be afraid to ask the auctioneers if you have any queries. If you are interested, register your interest with the auctioneers because occasionally properties are sold prior to auction.

• Always make sure you are aware of all the information available on the property, by reading all written material, asking the auctioneer prior to the auction and ensuring you arrive in good time to hear any last minute amendments.
  

• Equally, read through all the legal documents carefully, as these will vary from one property to another. Full legal packs are available on www.ahg.uk.net. These can either be downloaded and printed or emailed to you or your legal representative.

• Ensure you are satisfied with the condition of the property by appointing a qualified surveyor to carry out an inspection of the property that interests you.

• Bid clearly. Generally the auctioneer will make it quite clear as to where the current bid is in the room.

• Make sure you have sufficient funds available for the deposit you will be required to pay. Generally this is set at 10% of the sale price subject to a minimum. Also check what methods of payment are acceptable, as rule of thumb cash or credit card deposits are not accepted.

It is very important to arrive at the auction well before the advertised starting time, this is because any changes or additional information will be available on the amendment sheet or will be announced by the auctioneer immediately before the sale begins. These amendments may have a bearing on your desire to bid on the property.

• You can bid personally or through someone else, an agent or your solicitor can bid on your behalf. Some auctioneers will accept telephone or proxy bids for which the auctioneer will require written authorisation from you (usually on a printed proxy form) and also your cheque for the deposit, calculated on the amount of your maximum bid.

• You will be required to register your intention to bid, this can be done prior to the auction or in the auction room prior to the auction commencing.

• If you are successful in your bid you will need to sign the sales memorandum and pay the deposit there and then. At the fall of the gavel you will be bound by the terms and conditions and usually liable for the insurance of the property from that moment. The date of completion when you will pay the balance of the purchase price and take possession will be clearly stated in the conditions of sale.

• If the property remains unsold, the auctioneers have the authority to sell the property after the auction under the same conditions.

When dealing in the auction market it is essential for both buyers and sellers to take careful and detailed professional advice from solicitors and valuers. Go in with your eyes wide open, armed with all the information and advice available, and the whole process should be successful and go smoothly.

Auction House Goodfellows
30 Stonecot Hill
Sutton

Surrey

Tel: 08451 303055
Email: info@ahg.uk.net