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General Questions Answered Regarding Property Auctions

What is a Guide Price?

A guide price is a price given to all properties within an auction for the purpose of indicating the potential price in which the property in question could be sold for. It can come in the form of a fixed price or a price range (e.g. £100,000- £120,000). The guide price can be altered at any time before the actual auction takes place. It is, however, required for the most up-to-date guide price to be stated on the property details page at all times.

What is a Legal Pack?

A legal pack is a set of legal documents related to a property prepared by the seller’s solicitor. They are
available in both hard and soft copy formats. The hard copies are available on the day of the auction,
whereas the soft copies are available on the related property details page on our website.

A legal pack includes – but is not limited to – the following:
• Official Copy of Register of Title (Office Copy Entry)
• Land Registry and Local Searches
• Special Conditions of Sale
• Property Information Form
• Fixtures and Fittings Form
• Management Information
• Leases
• Tenancy Agreements
• Planning Permission Documentation

Auction Agent recommends potential bidders to have all property legal packs assessed by their own
legal advisors. There will always be vital information under the ‘special conditions of sale’ that may help
bidders decipher whether the property in question is suitable for them or not.

What is a Reserve?

Every property going through an auction must have a ‘reserve price’, it is a price agreed between the
seller and auctioneer prior to the auction day. It indicates the minimum price that must be met on the
day of the auction for a sale to successfully go through. The reserve price must not exceed 10% of a fixed
guide price. Alternatively, it cannot exceed the higher end of a guide price range if the guide price is
shown as a price range (e.g. £100,000- £120,000) rather than a fixed amount.

What is an Addendum/Amendment Sheet?

An addendum, also referred to as an amendment sheet, is a list of charges that have been amended
post publication of the auction catalogue. It, therefore, forms part of the sales contract. This document
will be made available on the day of the auction. The auctioneer will often remind bidders of any
changes made as well.

What is an Unconditional Auction?

An unconditional auction, often referred to as a traditional auction, is where properties are being
auctioned and sold to the highest bidder, subject to the reserve price, upon the fall of the hammer. As
soon as the hammer falls, the highest bidder would have entered a legally binding contract and would
have 28 days to complete the purchase. It is required for the said bidder to pay a 10% non-refundable
deposit and sign related paperwork immediately after the auction finishes.

What is Auction Finance?

Auction finance is similar to a regular property financing option but especially catered to properties
bought through auctions due to the tight deadlines imposed. Auction Agent works closely with various
financing suppliers to ensure that bidders can complete their purchases stress-free. Such finance
companies have evolved throughout recent years, making financing easier, cheaper and more accessible
to the wider general public. They have become very flexible in the types of properties that they provide
financing for. Furthermore, they can often be confirmed within hours of application.

When are Auction Catalogues published and made readily available for bidders?

Auction catalogues are generally published two to four weeks prior to the auction day. Current and
upcoming catalogues are available for viewing on our website. Properties would have been advertised
and put up on the market up to four weeks prior to the publication of the related auction catalogue. This
will enable interested bidders to have sufficient time to view and investigate available properties.

Can I request a copy of the auction catalogue?

You may request to be added on our regular mailing list to receive a soft copy of the auction catalogue
by contacting a member of our staff. You may also request for a hard copy, if you so wish to receive one.
The hard copy will be made available on the day of the auction for your viewing.

What happens if a property does not meet its reserve price?

Such properties are withdrawn from the auction immediately after the auction. It is, however, possible
for interested parties to submit an offer that is within the reserve price threshold and secure the
property after the auction. It is also possible for interested parties to submit an offer below the reserve
price, and have the auctioneer submit the offer to the seller for their consideration.

When are auction results available for viewing?

Auction results are generally available within a few days after the auction date. You may search on our
Auction Results page, or alternatively, you may contact a member of our staff for assistance. Please note
that properties that have failed to sell, or have been sold privately prior to the auction date, would not
have the price disclosed.

When do I need to arrive at the Auction by?

It is recommended for all bidders to arrive 30 to 60 minutes prior to the official start time of the auction.
This is to consider the potential delay in the registration process. Furthermore, it will allow bidders to
hear opening announcements, including any changes or important information.

When is your next Auction?

We generally hold auctions bi-monthly. You may check our Upcoming Auctions page for dates, times,
addresses and available property details. Alternatively, you may contact a member of our staff for
further information.

Do only properties with issues appear in Auctions?

This is a misconception and is false. Our auctions have a mix of both good quality/mortgageable
properties, as well as properties which need works and other issues. They are generally in a wide range
of property types, usage and value. It is the bidder’s responsibility to ensure that all checks, searches
and investigations are done prior to the auction day.

What areas do you cover?

Auction Agent covers residential, commercial and mixed-use properties across the North West. We also
have land and other development projects to offer.

What is Open Market Value?

The open market value is an estimated amount calculated by a valuer that he/she believes constitutes as
fair value. Such opinions are not always accurate and may differ from valuer to valuer.

What is an Overage Clause?

An overage clause is a clause that specifies any increment on the sale price in the contract if certain
conditions are met. Conditions come in different shapes and forms. An example would be a condition
where planning permission is granted that may increase the value of the property/land.

What is the difference between selling through an auction and real estate agent?

What is the difference between selling through an auction and real estate agent?
The most significant difference between the two channels is that an auction has a specific timeframe
where the exchange and payment must be concluded. An auction will generally have contracts
exchanged and payments made within 28 days. Sales through a real estate agent, however, may see a
sale agreed quicker but, as there is no time limit requirement, may take months for contracts to be
exchanged.
Another major difference would be the approach in pricing. Auctions will often market properties at a
lower guide price to allow competitive bidding to determine the end result. Real estate agents will
generally go the other direction, pricing properties at the highest price possible then slowly working it
down until buyer interests are received.
Going with either methods will, therefore, be determined by the seller’s circumstance and preference.

What is the difference between Exchange and Completion?

Exchange of contract is when the seller and buyer enters into a legally binding contract for the
sale/purchase of the property in question. An auction, therefore, would have contracts exchanged
immediately upon the fall of the gavel.
Completion is when the property ownership is officially transferred from the seller to buyer. This
happens when the transfer has been officially submitted to and confirmed by the Land Registry.

How long does an Auction last?

The length of each auction depends on the number of lots. It generally takes an hour to complete 20
lots.

Are children allowed in the auction hall?

Yes, they are allowed. It is, however, important to observe proper auction etiquettes during each
session. The auctioneer is responsible for maintaining order within the auction hall and, therefore, their
decisions must be respected even if it means the ejection of your children.

In what order will lots be offered on the day of the auction?

Lots will typically be offered chronologically in lot order, starting with Lot 1. There will be, however,
situations where this may change. It is advisable for bidders to listen to the auctioneer carefully for any
changes related to this in the opening remarks.

Our team are on hand to answer questions and you can call us on 01706 940499.

If you prefer to email us fill in the form below and we will get back to you as soon as we can.

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