Guide to buying a property at auction
If you're looking for properties for sale at auction you'll be pleased to hear that this method offers a variety of advantages to the seller and the buyer.
Notably, if you either purchase or sell a home using an auction service you will invariably find that much of the delay and trauma sometimes experienced when buying or selling a property via the traditional methods are eliminated.
This is because there are fixed dates for both the completion and the auction, which makes the whole process a lot more clear cut and eliminates any problems with finishing a sale.
In addition, those thinking of using this service should be aware that the auctioneer is the only person with the necessary authority to sign the memorandum or contact of sale on behalf of both parties, with the fall of the auctioneer's gavel signifying that the contract is binding.
Sellers will find that by using an auction they can achieve a premium price in a market where would-be buyers are engaged in fierce competition for desirable properties for sale.
Reassuringly, the auctioneer acts on behalf of the seller, as he owes this person a duty of care, confidentiality and advice.
However, you are also required to give the bidder accurate information and let them know if any changes take place, up until the moment where the auction takes place.
For those who are looking to buy a property at an auction, there are several key points to consider.
You should make sure that the auctioneers give you a copy of the auction particulars and you should also inspect the property and the area it's in before bidding.
If after this you are still interested in the home, ask the auctioneer about any questions you have about it and ask that they tell you if the sale conditions are amended or altered.
Also check if there is any chance that the home could be sold before the auction is held.
Furthermore, ensure that you are clued up on the amount of deposit you will have to pay if you are the winning bidder and find out what method of payment you will have to use to meet this financial obligation.
When buyers arrive at the auction they should get there before the advertised starting time and should be aware that they can either bid in person or get someone to do so on their behalf.
In the case that your bid should be successful you will be required to pay the deposit and sign the contract on the day and will be responsible for the property's insurance once the auctioneer's gavel falls.
If you are selling rather than buying a home at auction there are also many factors to consider.
You should take time to choose your auctioneer and may want to opt for one who is a member of the National Association of Valuers and Auctioneers (NAVA), to ensure that they are professional and can give you the service you deserve.
Also think about whether your home will be most likely to sell through a national, regional or local sale and act accordingly.
When you've chosen an auctioneer arrange to meet them at your home to discuss the building and ensure that the auction process is clear to you, making sure that you know what costs are involved.
Also get the auctioneer to tell you when and how the reserve price is set, as well as the price guide, and how it relates to the former.
Make sure you remember to get written confirmation of the Terms of Business, which should tell you about marketing the property.
And don't forget to tell your solicitor that your auctioneer will get in touch with them.
You may wish to attend the auction but don't have to if you have more pressing engagements as the auctioneer can sign the contract in your absence.
Finally, if you're using an auction you'll be heartened to hear that it's a straightforward process. Although it's crucial that you still obtain detailed and careful advice from valuers and solicitors to make sure that the process goes as smoothly as possible.
Posted at 05:04 28/07/2011