Agency logo

Things to do before an auction

It’s time for our autumn sale and Trevor Blythe and the team here are working very hard dealing with final viewings and setting reserves and we are, as always, positive about next week and hope that we will have a full room and a successful sale.

The market is certainly active and we have had plenty of interest and indeed viewing and we hope that our strategy will have worked and that we able to maximise value for our clients!

Of course, while all that is going on, we are looking at lots for our winter sale later this year and are delighted that we have a number of lots for inclusion already and would be pleased to hear from anybody who wants to know more about how the auction process can unlock value.

Now is the time we are asked a variety of questions from buyers keen to know more about what to do on the day and here are some pointers.

1.      Separate advice – Whether a prospective purchaser is a developer or private individual, they should always seek separate advice prior to any sale and preferably obtain a survey on the property, prior to coming to one of our auctions.

It is very important that buyers know everything they can about a property prior to bidding. It could be that there is a problem with a boundary issue or a surveyor could identify a defect in the property, that is very relevant to a particular purchaser and we would also ask buyers to look at the legal documentation as well which is so relevant to any lot.

2.      Finance – Buyers are responsible for raising finance if they are not a cash buyer. Buyers should be aware that a contract is binding at the fall of the hammer and that they have to find 10% of the purchase price at the fall of the hammer. The balance is usually payable after 28 days.

3.      Reserve price – The reserve is set prior to the auction and is private. Any lot will not be sold at a figure below the reserve price. The guide price is issued at the outset to give an indication of the potential value on the day of the sale.

4.      What should I pay? – You need to form a view yourself or talk to your surveyor or advisor who will give you advice and carry out the necessary research. Our guide prices are an indication only of where a property might sell. The job of the auctioneer is to get the best possible price on the day and, of course, everything will depend upon the interest shown, but we always suggest that buyers should form a strategy to ensure that they are absolutely comfortable about the auction process and then hopefully they are not disappointed on the day.

5.      What happens on the day of the sale? – Buyers should arrive early and remember to bring photographic identification and proof of address which is required under the Money Laundering Regulations. Leave plenty of time and we are available on the rostrum to deal with any queries. Then there is also a final opportunity for questions when the sale proceeds but we suggest that you deal with all queries well before the day. We are of course available between know and the auction to deal with any queries on any particular lot.

6.      What happens if you are successful? – Probably the first thing you should do is have a drink! Not before you have dealt with the insurance, signed the contract and paid the 10% deposit at our cashiers.

 

The auction process is exciting but you need to be careful and sensible and prepared. Brown & Co.’s next auction is on Tuesday 28th September at The Assembly House in Norwich. For any queries or questions about future auctions please contact Peter Hornor or Trevor Blythe at their office.