Frequently Asked Questions
You can use this guide to familiarize yourself with rules, laws and other important information relating to your property.
A conditional auction is where a property is offered in the auction room under a best bids process where the winner secures a period of exclusivity (usually four weeks). During the exclusivity period, the buyer will sort their mortgage funding and exchange contacts with a fixed completion date (usually within eight weeks of winning the property). The successful bidder will pay a non-refundable reservation fee to secure the exclusivity and both the seller and the buyer are tied into the process.
A legal pack is the set of documentation prepared by the seller’s solicitor. These are available to download via the property details page on the website. A hard copy will usually be available in the auction room too. The elements of a legal pack are:
• 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 teams recommend that all elements of the legal pack are inspected by those wishing to bid and their legal advisors. The Special Conditions of Sale will include pertinent information such as completion date, any additional disbursements that become payable on completion, and overage clauses.
Each property will be offered in the auction subject to a reserve price. This is a confidential figure, set between the seller and the auctioneer, and it is the figure that bidding must reach before the auctioneer can sell the property in the room. For a single figure guide price, the reserve cannot be more than 10% above the guide (for example, a property with a guide of £100,000+ could have a reserve up to £110,000). For a guide price range (£100,000 – £120,000), the reserve must sit within that range and not exceed to the top end figure stated.
Generally, an auction catalogue is collated and published between 2-4 weeks before the auction day. Each catalogue is available to view first on our website on the Upcoming Auctions page, and printed copies will be available later directly from the auctions team.
Properties will have been marketed for up to 4 weeks before the catalogue is released, giving interested parties the opportunity to view and investigate a property and get ready to bid. If you want to hear about available properties before the catalogue is released, then register for or free Property Alerts.
The main difference between auction and private treaty (selling via an estate agent) is that auction has a fixed timescale for exchange and completion. Auction will usually see exchange occur on the fall of the hammer on the auction date, and completion/key handover typically occurring 28 days later. Private treaty may see a sale agreed quicker, however there is no fixed timescale for exchange or completion, and current reports state that from sale agreed to completion can take on six months on average.
Other differences include the way auction and estate agents approach valuing a property. An estate agent will usually suggest a higher price and seek offers from buyers at or below the asking price. They may, after an initial period, advise the seller to lower the asking price, step by step, until buyer interest is generated. By comparison, an auctioneer will guide a property at a more attractive price which generates interests from multiple buyers; by doing so and using the bid up process in an auction environment, the final selling price for suitable auction lots will be similar to or exceed those achieved via estate agents.
Often the decision to sell by auction is determined by factors associated with the property or the seller’s circumstances. Auction provides speed and certainty; an auction property will usually be sold with an immediate exchange of contracts within 3-6 weeks of it being entered, with completion normally taking place 4 weeks later.
Properties that do not sell in the auction room are withdrawn from the sale. The auctioneer will normally ask interested bidders to speak to the team after the auction to give their best bid. There may be several people interested in making a post-auction bid – we, therefore, suggest that you speak to the team as soon as possible.
If the offer made is at or above the reserve price, then the property can often be hammered down under standard auction rules. If the bid is below the reserve, then the auctioneer will put this forward to the seller for consideration.
An overage clause in a sale contract is the means through which a seller may be entitled to receive further monies after completion if a specified condition is satisfied. It is used in situations where the property/land value can be significantly raised by the subsequent granting of planning permission for a new use or where additional dwellings are approved. We always suggest that you take advice from a professional who understands the subject.
An Addendum sometimes referred to as an Amendment Sheet, is a list of changes that have been notified after the catalogue being published. The sheet will be available in the auction room and you will often be able to view the addendum on our website. Bidders should check the addendum in advance of the auction, in addition, the auctioneer will often remind bidders of any amended information prior to the property being offered. The addendum forms part of the property description and sale contract. If you have any questions about the contents of the addendum, please speak with a member of the auctions team for advice prior to the auction beginning.
Online auction sees individual properties offered with eBay style bidding on a web-based platform. Marketing of the Online Auction lots includes extensive promotion, open house viewings, sometimes with legal packs in place. Bidders will register their interest, provide ID and then gain access to the bidding system. Online auctions can offer properties Unconditionally (always with a legal pack provided) with the fall of the virtual gavel affecting the exchange of contracts between buyer and seller, or alternatively, lots can be offered on a Conditional basis with the winning bidder securing a period of exclusivity (usually four weeks) to arrange any mortgage funding before exchanging contracts.
An unconditional Auction (sometimes called a traditional auction) is where a collection of properties are offered for sale in an auction room with contracts being exchanged to the highest bidder on the fall of the gavel. The auctions team bring together all entries into a catalogue, actively promote the properties, host open house viewings where possible, get legal packs created and made available, and cultivate interest from as many buyers as possible. Competitive bidding in the room will usually see the property sell at a price above the seller’s reserve.
Auction finance is a service provided by specialist lenders to auction buyers. We work with two specialist suppliers who provide short term finance, bridging loans, commercial finance, buy-to-let mortgages, and secured loans. Auction finance can help all types of people in a variety of situations, by providing the finance needed to move in, move up, get on or start something. Homebuyers, landlord investors, property professionals and small businesses are regular users of auction finance.
Money is made available extremely quickly and fits neatly into the purchasing timescales of auction buyers. Loans are secured against the property being purchased or other property assets so status enquiries are less onerous and borrowing can often be confirmed within hours. Auction finance companies can lend to those who are employed, self-employed, limited companies, limited liability partnerships, sole traders, and partnerships. They are also very flexible about the types of property you are looking to purchase and the circumstances of your purchase.
This is untrue. Many of the properties offered at auction are mortgageable and could be moved into without difficulty. However, there will be others that may have issues or require works and will not be suitable for mortgage lending. We always endeavour to describe properties accurately; we also make available legal packs in advance of auction day with any late changes being communicated via Addendum/Amendment sheet.
All buyers are advised to complete all necessary due diligence prior to bidding – if a property’s condition is a worry, then consider having a survey or inspection and obtain appropriate reports. This is important as it will help you to make an informed decision before bidding begins. Also consider appointing a solicitor as early in the process as possible – they will need to review the legal pack for any property that you are interested in and check other information such as searches, planning permissions etc.
If the offer made is at or above the reserve price, then the property can often be hammered down under standard auction rules. If the bid is below the reserve, then the auctioneer will put this forward to the seller for consideration.
Open Market Value is the estimated amount that a property would exchange contracts at (sell for) between a willing buyer and a willing buyer on the date of the valuation. In the opinion of the valuer, it is the probable price that a property would be expected to achieve on the day in an open fair sale environment.
Exchange of contracts is when the sale between seller and buyer becomes legally binding. At auction, this will usually be upon the fall of the gavel, after which documentation is signed by the purchaser and the deposit is taken by the auctioneer as the agent for the seller. Once contracts are exchanged, the buyer is committed to purchase the property.
Within the terms of the contract will be the completion date. This is the date on which title ownership of the property is transferred by the seller to the buyer, and the buyer takes possession of the property having paid over the balance of the monies. Once completion is confirmed by the solicitors, the buyer would then be able to collect the keys and move in.
Other differences include the way auction and estate agents approach valuing a property. An estate agent will usually suggest a higher price and seek offers from buyers at or below the asking price. They may, after an initial period, advise the seller to lower the asking price, step by step, until buyer interest is generated. By comparison, an auctioneer will guide a property at a more attractive price which generates interests from multiple buyers; by doing so and using the bid up process in an auction environment, the final selling price for suitable auction lots will be similar to or exceed those achieved via estate agents.
Often the decision to sell by auction is determined by factors associated with the property or the seller’s circumstances. Auction provides speed and certainty; an auction property will usually be sold with an immediate exchange of contracts within 3-6 weeks of it being entered, with completion normally taking place 4 weeks later.
Buying at Auction
Some auction rooms operate a pre-registration system for all bidders and might also ask you which properties you are hoping to bid on. You do not need to register in advance of auction day, you can just visit the website – aim to visit 30-45 minutes before the start of the auction to ensure you have time to register before it begins.
Yes, you can but you will need to make the necessary arrangements with the auctions team prior to auction day. We offer a telephone bidding service and a proxy bidding service, plus in some rooms, you are able to bid live online. If you can’t view the website on the auction day the safest way for you to bid is by Proxy – this is where you lodge your best bid with the website. Alternatively, you can choose Telephone bidding where a member of the auctions team takes bidding instructions from you and bids in the room on your behalf – this works well but is dependent on the signal strength and we cannot guarantee that connection will not be lost.
Yes, you can and more first-time buyers are now purchasing properties in our auction rooms. But you will need to work quickly when you find the property that you want to buy. First you should familiarise yourself with the auction process and we suggest that you attend an auction to see how it works. Work out how much you can afford to pay for the property and associated costs of purchase, then start searching for a suitable property in your area of choice.
If you need a mortgage, like most first-time buyers, it is sensible to start arranging this as soon as possible – it will help you to set your budget, to bid with confidence knowing that you have the funds needed and to get things moving quickly when you do make the winning bid. Remember if you do need a mortgage then the property needs to be mortgageable; you will probably appoint a surveyor or another professional to check the property for you and provide advice on value. You will also need a solicitor to examine the legal pack and advise on any problems. Then with help from others decide on your budget and maximum bid before attending the auction. Then check your finances, make sure that you have the 10% deposit accessible as you will be required to pay it over on the day plus any other associated costs.
First-time buyers purchase at auction because it can save them money, especially if they are prepared to do some DIY which will add value to the property after they have purchased it. It is a faster way to buy, but there can be risks and you really must do all necessary due diligence before bidding in the room because the fall of the gavel delivers a binding exchange of contracts and there is no turning back.
Before you can bid you will be asked to provide proof of ID and residency, as well as further personal details such as national insurance number, length of time you have lived in your current address in addition to past addresses – these details will then be used to carry out a further electronic verification for money laundering purposes. If you win the bid you will then pay the deposit monies by the debit or credit card used to register. Including any other charges stated in the auction catalogue such as the administration fee or buyer’s premium, before completing and signing the two copies of the memorandum of sale. Once completed, you will be handed your copy of the memorandum of sale and related papers, and you will be asked to pass these to your solicitor. After the auction, the auctions team will confirm your purchase in writing, notifying your solicitor and explaining the next step.
Everyone hoping to bid in an auction needs to have a photographic ID together with proof of residency. If you are the successful bidder, the auctions team will take copies of your ID, and they may carry out electronic ID verification as well, in order to meet the HMRC Anti-Money Laundering Regulations. Remote bidders (Telephone/Proxy/Online) will also need to provide this ID before their bid can be accepted.
Photographic ID
• Current signed passport
• EU member state identity card
• Current photo card driving licence
• Armed Forces ID card
• Firearms or shotgun certificate
Proof of Residency
• Utility bill/statement – dated within past 3 months
• Mortgage statement from a recognised lender – dated within past 3 months
• Bank, building society or credit union statement – dated within past 3 months
• Local council or housing association rent card
• Current UK / EU Drivers Licence (paper version)
Some properties will be offered with a requirement for the purchaser to also pay a Buyer’s Premium to the auction room at the time of exchange. This is not on all properties, but details for this will be shown in the property details where applicable.
An Administration Fee or Charge covers the auctioneer’s costs in servicing the requirements of all those interested in purchasing the property. It is common practice and the fee (plus VAT) will be payable by the buyer along with the 10% deposit after the gavel falls. The amount can either be a fixed fee, or a percentage of the sale price (subject to a minimum amount). Please check the property details for more information.
Yes, you can bid online for an in-room auction lot. We provide other methods of non-attending biddings, such as telephone or proxy.Â
Yes we will welcome pre-auction offers, and if you are really interested in purchasing the property, then a prior offer is a good idea. Not all properties can be purchased before the auction as some sellers require them to be sold publicly in the auction room.
Before making a pre-auction offer, please ensure you have thoroughly inspected the legal pack. Consult with the auctions team to find out whether a prior offer can be considered, and if so put forward your very best bid. Your offer will need to be strong, at the top end or in excess of the guide price. If agreed, the purchase will take place under auction rules with an exchange well in advance of the auction day.
You generally do not need to book in advance to attend an open house viewing unless stated to the contrary in the property details. The property will be opened at the start time stated and all those interested in viewing should attend. We do suggest that you speak to the auction team member who is hosting the open house; they will be able to answer any questions that you have concerning the property and will know when the legal pack is likely to be available to download.
Before making a pre-auction offer, please ensure you have thoroughly inspected the legal pack. Consult with the auctions team to find out whether a prior offer can be considered, and if so put forward your very best bid. Your offer will need to be strong, at the top end or in excess of the guide price. If agreed, the purchase will take place under auction rules with an exchange well in advance of the auction day.
The deposit payable by the successful purchaser immediately after the hammer has fallen is normally 10% of the sale price. For low value lots, this is subject to a minimum deposit figure which will be stated on the Auction Information page in the catalogue – it will normally be in the region of £3,000 – £5,000. Deposits usually need to be paid from cleared funds, check the catalogue or with the auctions team for a list of accepted payment methods. Please ensure sufficient funds are available in your account before bidding.
It is important to note that the bank account being used for payment of the deposit must be in the name of the purchaser. If it is not, then the individual/company named on the bank account will need to be ID verified as part of our required Anti Money Laundering procedures.
set up a schedule of open house viewings for their auction lots. You should be able to find out the official open house dates from the property details, if they are not showing then please contact the auctions team to find out whether the property can be viewed. Some properties that do not require key access, such as land and development sites, can normally be viewed during daylight hours at your own risk. On occasions, some properties are offered for sale without internal viewing is available. Speak with the auctions team regarding these and they will do their best to assist.
It is important to note that the bank account being used for payment of the deposit must be in the name of the purchaser. If it is not, then the individual/company named on the bank account will need to be ID verified as part of our required Anti Money Laundering procedures.
There will usually be an Administration Charge payable to the auction team, which will be shown on the Auction Information page in the catalogue and in the property details too. Sometimes a Buyer’s Premium will also be payable by the purchaser, against this will be included in the property details. There may on occasion be other fees or charges made that relate specifically to the property being sold – these should be referred to and explained either in the property details or in the Special Conditions of Sale in the legal pack. Buyers may be required to reimburse the cost of searches and occasionally other costs too; all such requirements should be contained within the Special Conditions of Sale.
A Reservation Fee is normally associated with properties sold under the Conditional auction method. This is where the successful bidder secures an exclusivity period (usually 20 working days), during which time they will finalise any mortgage that they require and move the legal process through to exchange of contracts. The reservation fee is non-refundable is paid by the purchaser to secure the exclusivity period. Details of this fee will be shown within the property details.
Telephone or proxy bidding allows those who cannot come to the auction in person to still be able to bid.
With telephone bidding, a member of the auctions team will call you during the auction. They will advise you as to where the bidding is, including all competing bids as they are received, and they will bid on your behalf with your instructions. Please bear in mind, there is a risk that the telephone connection could be lost so you wouldn’t be able to bid, so you may wish to advise your maximum bid in advance in case this occurs.
Proxy bidding means that you advise the auctions team as to your maximum bid, and the auctioneer will bid on your behalf up to your maximum. They will always endeavour to secure the property for you, either at or below your maximum bid if possible. If the bidding in the room exceeds your maximum, then you proxy bid would end.
If you wish to bid by Telephone or Proxy, you can download the form on the property details page, along with the relevant terms & conditions for bidding by this method. Arrangements will need to be set up prior to auction day, with information provided, documents sign and funds made available for the purchase deposit should your bid be successful. ID verification will be required and a remote bidder will need to have done all the usual due diligence in advance.
Many people choose to buy at auction because the type of property they wish to buy is better suited to auction rather than estate agents, so it may be the only way that they will be able to purchase it. However, there are a number of other benefits of buying at auction.
Speed is an attraction, there is no quicker way to buy a property; fixed timescales are set from the beginning and your completion date will be known so you can make plans and arrangements. Auctions are a level playing field, as everyone has the opportunity to place their bids and the process only requires you to be the highest bidder, at or above reserve, to be successful. The certainty of auction appeals too, because once the hammer falls, the property is secure – neither side can back out of the deal, there is no risk of gazumping or gazundering, or a chain collapsing. Many landlords also choose to buy tenanted properties at auction because they will start receiving rent from the day of completion.
Selling at Auction
Sold By Auction are specialises in land and property, and the types of entries can be very diverse. We can also sell ground rents, garages, beach huts, mooring rights, amenity ground and any unique types of property too.
Auction is a slightly more expensive way to sell than through estate agents. This is because the process is much faster, marketing is more extensive and there are extra costs involved including the auction event itself. Most auctioneers charge an entry fee to cover some of this upfront cost, then sales commission will be charged after the property has sold and exchanged contracts. Commission levels vary around the country and between auction rooms, also the type of property and its value may also be a factor in determining the commission. Your choice of auction room should be based on their capability and reputation, rather than the fees they quote and it is better to select one that holds auctions in your area as your property will almost always sell for more money locally.
Auction is the quickest way to sell your property. If selling by unconditional auction, you can instruct, exchange and complete in as little as 4 weeks if you need to sell urgently. More often though, properties will be entered into auction 4 – 6 weeks before the auction day, exchange occurring at the sale, and then full legal completion happening 4 weeks later.
The more marketing time a property has before the auction, the higher chance it will have to sell. However, most auctions teams will accept late entries, sometimes only 2 weeks before the auction day, but you may need to have a keener, more attractive guide price to attract bidding interest.
No, it is not possible to renegotiate the sale price after the hammer has fallen. The sale price is fixed, contracts have exchanged at that fixed price, and no renegotiation is possible. All bidders are advised not to bid beyond their maximum and that the successful bid is the price at which contracts are exchanged.
An entry fee is a charge paid by the seller to the auctions team. This cost is to cover the cost of entering the property into the catalogue, the extensive marketing and promotion during the run up to the auction, right through to the auction day itself. It is usually paid when you instruct the team to sell your property, but on occasions and with prior agreement it may be settled from deposit monies on exchange of contracts.
Sales commission is the fee charged by the auctions team for successfully selling the property. It is invoiced after exchange of contracts and usually settled by deduction from the deposit paid by the purchaser. The rate of commission is agreed between the seller and auctions team, and shown in the Agency Agreement which sets out the fees and terms of business that apply.
Many types of property will sell well at a traditional auction, often achieving higher sale prices than through estate agents. If your property matches any of the following descriptions, then auction will likely be right for you if it doesn’t or is of better quality, it could well be suitable for online auction.
+Â Does it need refurbishment, can it be redeveloped or extended, or is there space for another home to be built? For such properties, there is a multitude of conversion specialists, small builders and clever developers who will compete to buy it.
+ Are there difficulties or issues with the property – is it unmortgageable, is there a short lease, neighbourhood difficulties, does it have an adverse history, or Japanese Knotweed, legal issues or have sales kept failing. Such stock is most regularly sold by auction and often it is better to make auction your first-choice route rather than have it exposed and fail through an estate agent.
+Â Is your property tenanted or has it been rented out? If so and this is its likely future use, you will want investors fighting for it.
+ Similarly, if it’s land or mixed-use such as retail with flats above, then the proven route to market is by auction.
+Â Maybe it is a vacant or an occupied commercial lot, or a property being sold as an investment? If so, auction becomes the normal choice.
+Â If you are in a hurry, need a certain sale, or want to ensure a level playing field and full transparency? Many people do, and they choose auction for one or more of these reasons.
Yes, this is called the reserve price. Your property will be offered subject to this reserve price, and it is kept confidential between the seller and auctions team. It is usually set just prior to the auction and is a figure below which the auctioneer cannot sell the property during the auction. If the property fails to reach its reserve, offers will then be invited from all interested bidders to try and agree a sale after auction at or above your reserve.
+Â Does it need refurbishment, can it be redeveloped or extended, or is there space for another home to be built? For such properties, there is a multitude of conversion specialists, small builders and clever developers who will compete to buy it.
+ Are there difficulties or issues with the property – is it unmortgageable, is there a short lease, neighbourhood difficulties, does it have an adverse history, or Japanese Knotweed, legal issues or have sales kept failing. Such stock is most regularly sold by auction and often it is better to make auction your first-choice route rather than have it exposed and fail through an estate agent.
+Â Is your property tenanted or has it been rented out? If so and this is its likely future use, you will want investors fighting for it.
+ Similarly, if it’s land or mixed-use such as retail with flats above, then the proven route to market is by auction.
+Â Maybe it is a vacant or an occupied commercial lot, or a property being sold as an investment? If so, auction becomes the normal choice.
+Â If you are in a hurry, need a certain sale, or want to ensure a level playing field and full transparency? Many people do, and they choose auction for one or more of these reasons.
No, it doesn’t! If your property is right for auction, you should expect to sell it at the same or higher price than you would achieve through an estate agent. Not all properties suit auction however, and this is why some people think that they may get less money for their property. Always take the auction teams advice as to what would be your best method of sale for your property.
A member of the auctions team will visit your property, inspect it, and talk to you about its suitability for sale by auction. They will ask questions about the property, as well as your circumstances and wishes. You will be provided with advice on the best method of sale, and if it is auction, they will discuss with you its potential selling price at auction and what guide price should be used for marketing.
An auction property will be promoted more heavily than if offered through an estate agent. As well as being added to the major property websites, such as Rightmove and Zoopla, it will appear on the Sold By Auction website which is one of the UK’s busiest auctions website. It will also be sent to an email database of active auction buyers and proactively sent to local buyers as part of a diverse marketing strategy. Press advertising will be used in areas where this is still productive, but we also use social media actively and many other composite property and auctions websites too.
Reasons to choose auction include the speed and certainty that it offers; there is no faster way to sell and success rates through to completion are far higher than through estate agents. Other attractions are that it delivers a legally binding sale with contracts exchanged on the fall of the hammer, so neither party can pull out of the sale or try to renegotiate the price. The competitive bidding process aims to drive the price up so the property achieves its best possible price on the day too.
If you are hoping to sell your property to another landlord or you are paying any mortgage/finance on the property, it is usually better to leave a tenant in situ and sell it as a tenanted investment. By doing so, you will benefit from receiving rent through to the day of completion and the new buyer will start taking rent from completion.
If you intend to sell to an owner-occupier, or if the property requires refurbishment, you may wish to serve notice and be able to sell your property with vacant possession. You should consider both, and we recommend that you take advice from the auctions team who are capable and experienced in selling both tenanted and vacant.
You will certainly need a solicitor and need to appoint one as soon as you enter a property into auction. It is better to choose a solicitor who has auctions experience because special expertise is required. Your appointed solicitor will be responsible for creating the legal pack without delay and will handle the conveyancing of the sale after exchange through to completion.
Yes, it can and this is one of the best reasons to choose auction. Complete our free auction valuation form or speak to your local auctions team as soon as you can. We will usually be able to enter the property within a few days and with luck our next upcoming auction will be just around the corner. If your property is priced at a keen and attractive level, we can virtually guarantee you a quick sale.
Auction properties frequently sell for more than their guide price, but this can’t be guaranteed. The final selling price is dependent on the number of bidders interested and the encouragement that the auctioneer can give. If the marketing programme has generated lots of interest, and the property is keenly guided, then the likelihood is that it will sell at above guide and the achieved selling price should impress.
Once the hammer has fallen, the sale is agreed and contracts have exchanged, and neither the seller or the buyer can pull out at this stage. On the very rare occasion where the buyer fails to complete in accordance with the contract, then a contingency process is followed and the buyer risks losing their deposit and incurring further penalties too.