Brendons Auctioneers

This guide has been published by Brendons Auctioneers to give a brief guide to prospective buyers and sellers as to how the auction process works. This method of sale is becoming increasingly more popular and auctions now account for a significant number of all property sales. It is generally a faster process than the normal private treaty method of sale. If a property is sold by auction, that literally means that IT IS SOLD.

Brendons' auction team is always available to answer questions may not be covered in this guide. We can be reached at our offices on 08456 52 52 51 or by emailing auctioneers@brendons.co.uk.

Why sell by public auction?

For the vendor there is the advantage of speed and certainty. A reserve price is set prior to the sale, which is the minimum price at which the property will be sold. The gavel will fall when the highest bid is reached at or in excess of that figure. This is the point that contracts are legally exchanged and completion is normally set 28 days thereafter. Waiting for the buyer to complete the purchase process is eliminated under auction conditions - if the property sells at auction, it is legally sold. The price is set and neither party can change their mind once the gavel has fallen.

How is the price set and on what terms?

elling at public auction can often achieve a premium with competition for the property and the excitement of the auction room all working in the seller's favour. The property is marketed with a guide price that is purely an indication of a likely figure that would attract interest and that the property may achieve. After analysing the interest through a detailed marketing programme, the 'reserve price' is set with you. This figure needs to be competitive to ensure a sale is achieved, and can be exceeded. All legal documentation and essential information is available to the buyer prior to the auction in order that the buyer accepts the terms or will not choose to bid for the property. The terms are non negotiable within the auction process: the buyer buys what they see and on the basis of the background information provided.

What types of buyer attend the auction?

Auction sales attract only serious buyers who can perform on the day by paying a 10% deposit and exchanging contracts there and then. There are investment buyers, corporate buyers and private individuals within the room. An auction does attract tremendous interest and excitement. The aim of the auction process is to sell the property on the day and to provide assurance that if someone bids at an acceptable level, they will be serious about buying.

How is the property marketed?

Brendons Auctioneers have invested heavily in technology. This, added to our extensive knowledge and expertise, provides a high profile marketing programme and ensures a vast audience is targeted to ensure that every lot we offer has the best chance of being sold at the highest possible price.

Our marketing also includes:

• Distinctive auction catalogues with colour photographs, essential information and property details.
• High profile advertising in national and regional publications.
• Website advertising through our own website and also other web marketing portals such as RightMove.
• Marketing through the Essential Information Group database which has thousands of regular auction buyers.
• Promotion to an extensive buyer database by phone, post and e mail
• Auction catalogues distributed to investors, developers, solicitors, banks, accountants, private individuals and adjoining property owners
• Unique sale boards
• Internet auction viewing programme

How and why do I buy at auction?

Buying at auction is an assured way of securing a purchase. Once a bid is accepted, contracts will be exchanged on the day of the sale. The seller cannot withdraw from the sale, nor is it possible for any kind of guzumping to take place. Due to Brendons' auctions being conducted in public, there can be no secret bidding or unfair competition and once the gavel comes down, the successful bidder is legally committed to both pay the agreed price and complete the purchase. Another attraction of buying at auction, is that properties are usually offered at a realistic guide price, particularly when in need of repair, refurbishment or being sold by a financial organisation to recover debts.

The seller will provide a legal pack that may be inspected at any time. Brendons Auctioneers strongly advise that professional advice is obtained from a legal representative. Details of the seller's solicitors will be available and, should a mortgage be required, it is available to have this in place prior to the sale. Again, Brendons Auctioneers strongly advise that funding is discussed with a professional advisor prior to attending the sale.

The successful buyer will be required to pay 10% of the purchase price on the day, together with a buyer's premium which is normally £250 including VAT. The balance of the purchase price is required on the agreed completion day and this is normally 28 days after the auction.

What happens next?

To receive a complimentary auction catalogue do contact Brendons Auctioneers and this will give the information about the properties being offered for sale. The catalogue includes descriptions of the available properties, legal information, viewing arrangements and a guide price, which is purely an indication of a realistic selling price. This should not be taken as a firm asking or selling price and should be relied upon as a guide only. Professional advice must be taken in relation to any lot in which there is an interest.

For lots where viewings are arranged, these are carried out on a block basis and are published in all advertising and in the auction catalogue. Any prospective purchaser is welcome at these viewings and should the scheduled appointments be inconvenient, alternative arrangements can be made. Any interest must be registered with Brendons Auctioneers in order that prospective purchasers may be kept informed as to the progress of the sale.

How do prospective purchasers find out legal and survey information for the properties in which they are interested?

A legal pack is requested from each of the vendor's solicitors and this contains copies of all legal papers, which will be required by any prospective purchasers for them to make an informed decision regarding the purchase of any lot. The pack will include office copy entries and plans, the relevant local authority search, leases (if applicable), Special Conditions of Sale, replies to pre-contract enquiries and any other relevant documents. A copy of these legal packs can be obtained from Brendons Auctioneers for a small charge. Should any additional information be required, the seller's solicitors are listed in the catalogue and can be contacted directly. All legal packs are available for inspection at each auction - any purchase at auction takes place under the assumption that all documentation and the terms of the contract have been read.

It is strongly recommended that any potential purchasers carry out full investigations for any lot in which they have an interest and a survey is an integral part of that investigation.

How is finance arranged?

Should a mortgage be required, approval in principle must be obtained prior to auction. Lenders are now familiar with the auction process and are usually willing to provide a mortgage offer for buyers intending to purchase at auction. A valuation and survey will be required along with legal evidence that there are no issues that will affect the value. It is essential that the lender can provide funds within the timescale for completion. On the day of the auction, the purchaser will need to pay 10% of the purchase price and must ensure there are cleared funds to pay this amount. Finance can be arranged through Brendons Auctioneers on request.