Auction is a smooth process. We have answered our most frequently asked questions on how to buy and sell at auction.
FAQ’s to Buying
What is a live-stream auction?
Our online property auctions are live-streamed via our website. Potential buyers will register prior to auction, and complete our anti money laundering check through CREDAS. All buyers will securely register their debit card details before being authorised to bid. All properties are sold subject to the common auction conditions with an immediate exchange of contracts and fixed completion date.
What are the advantages of buying at auction?
There are lots of benefits to buying at auction, as a buyer you will know on the day that you have secured the property, and as a seller you are able to sell quickly without being held up in a long chain. As contracts are exchanged immediately both buyers and sellers will have peace of mind.
What happens prior to the auction?
Once you have found a property of interest we recommend that you attend a viewing. A list of viewing times can be found in our website. Simply book a viewing slot at a day and time that is convenient to you. *Please note there are some properties that may not have viewings, this may be due to the property being tenanted etc. Details are regularly updated and a full list of amendments will be published as an addendum on our site the day before the auction.
How do I register and what ways can I bid at auction?
Before participating in an auction, there are a few steps you need to take. Firstly, you need to choose the lot(s) you wish to bid on. Once you have made your selection, it is important to decide on your preferred bidding method. After determining your bidding method, you must provide your bidder information, such as your name, email, address, identification, solicitor’s details and proof of address. If the buyer’s details are different from the bidder’s, those details should also be entered.
Benjamin Stevens offers three methods of bidding:
• Internet – this allows you to view the live auction and bid online in real time.
• Telephone – a member of the team will call you and bid on your behalf during the auction.
• Proxy – you can authorise the auctioneer to bid for you to a specified amount.
How do I view the legal pack?
You can download any legal pack by clicking on the property of interest. You will need to sign up to a free account with auction passport to access the legal pack. It is only a one off registration.
What is a reserve price?
The reserve price is confidential between the seller and the auctioneer and is the minimum price that a property will sell for. Please note the guide price is not the reserve price.
Can you get a mortgage on an auction property?
Yes you can, but if you are buying an auction property it is very important to have this in place before the auction. We advise that you get your finances agreed and seek any legal advice before bidding at auction. Many buyers opt for a bridging loan to complete within the vendors timeframe.
Do I need insurance?
You will be required to insure the property between exchange and completion, we recommend keeping the property insured until it completes..
Are there any additional fees?
There are sometimes additional fees. These are usually included in the special conditions of sale. These can be for a variety of reasons, the cost of searches, selling costs etc.
How do I pay the deposit and administration fee?
You will need to submit your debit card details which will be authenticated and held securely, we can assure you that no payment will be taken unless you are a successful bidder.
If I am successful, what deposit must I pay?
10% deposit of the purchase price to be paid in cleared funds, plus the admin fee of £1,500 inc VAT.
Will I get my deposit back if I do not complete the property sale?
If you default on the purchase, you will lose your deposit and administration fee and you may be sued by the seller. If you have any queries please get in contact with us prior to the auction.
What do I need to do for completion?
Please instruct your solicitor after the auction, they will run through everything with you. On the day of completion your solicitor will arrange to transfer funds to the seller’s solicitor.
FAQ’s to Selling
What are the advantages of selling at auction?
The open competition provides transparency not available through private treaty, ensuring your property is sold to the person willing to pay the highest amount. With more than one person bidding the competitiveness has the potential to increase the price of your property significantly. There is also the certainty of an auction contract which is unconditional. The buyer immediately places a 10% non-refundable deposit and contracts are exchanged, the completion date is fixed.
What types of properties are suitable for auction?
We sell residential, commercial, Freehold properties, Leasehold properties, Short lease properties, Buy to let investments, Properties with structural issues, Commercial and Industrial properties, and Building plots with and without planning permission.
Can I sell a property which is not currently mortgageable?
Yes, many investors and cash buyers purchase at auction, making it a favourable way to sell if your property is not mortgageable, the property is sold as seen. You will also have the comfort of an immediate exchange of contracts with a set completion date unlike traditional methods.
How long do you market each property for?
We will ideally market your property for a minimum of 3 weeks in order to promote it to as many people as possible. We prepare a marketing campaign for your property; your property will be featured on our website, Rightmove and Zoopla. Our social media team will showcase your property on platforms such as Facebook, LinkedIn and instagram. We have the capacity to advertise your property to bidders in the UK and overseas. We will also market your property to our database of buyers and investors that Benjamin Stevens have registered over the past 20 years.
What if my property doesn’t sell?
We will continue to market the property for 2 weeks after the auction. We will contact previously interested people who have viewed and registered to bid on the property. We may have offers post auction and all offers will fall under our common auction conditions.
Do I need to instruct a solicitor?
We need a legal pack in advance of the auction. The legal pack must include the contract and special conditions of sale, land registry searches, EPC, along with any tenancy, lease and planning details (if applicable).
We recommend a solicitor who will be able to act swiftly. If you already have a solicitor our team will be on call to answer any questions they may have. If you do not already have a solicitor, we have a long-standing partnership with a trusted solicitor who we are happy to recommend.
Please click here to email the team with your requirements.
No matter if you are an individual or corporate client who has never sold or purchased a property at auction, we are always on hand for you, get in touch today.
