How property auctions work

The process for selling at auction is pain free and simplified by Farrell Heyworth's world class auctions team.

Seek advice- A phone call to the auction department is all it takes. If the property is already listed within the estate agency arm of Farrell Heyworth referral is easy with a continuity of service throughout. If not, the details of your property will be taken allowing us to give an estimate of what we would expect the property to achieve at auction. Often this can often be done without visiting the property.

All clients are provided with details of the full auction process, including fees and requirements allowing an informed decision to be made whether auction is the suitable method of sale in each case.

Instruct - All instructions are confirmed with terms of business and client Identification in line with the governments Money Laundering Regulations. Solicitors are instructed to prepare the necessary paperwork that forms the ‘legal pack’ providing prospective bidders with all the answers to commonly asked questions allowing them to bid with confidence on the day.

Details - Each property has specific marketing material prepared which forms the catalogue entry, Internet and Newspaper advertisements, further support papers and ‘For Sale by Auction’ board.

The "Marketing Period" - At least four weeks prior to the auction date the pre-prepared professionally produced catalogues are distributed throughout the comprehensive mailing list. All properties receive local and regional newspaper coverage plus multi-office marketing through the estate agency network and Internet coverage on specific property investment websites and the F H auctions site itself.

Viewings - In order to generate the competition and manage time effectively all auction viewings are carried out on block and are always accompanied by a member of the auction team. This not only allows prospective purchasers more time within a property it minimises disturbance to both tenants and vendors where applicable.

Set Reserve - Approximately a week before the auction date all activity and interest expressed in the lot is relayed to the vendor. At this point a pre-auction offer may be in solicitors hands with exchange of contracts imminent. It is with the knowledge of this information that any vendor can make a decision as to the undisclosed reserve price that is appropriate for the property. This crucial figure, that is kept strictly confidential, ensures the property performs in the auction room while protecting the interest of the current owner.

Auction Day - Time is allowed prior to the commencement of the sale for prospective buyers to peruse the hard copy of the legal pack and register their details in order to bid. Each bidder is presented with a unique paddle number to aid both identification and enhance the smooth manner in which proceedings are handled. Final amendments to the catalogue are circulated throughout the room having been continually updated on the website for a number of weeks. Each lot is offered in catalogue order and described fully prior to the start of the bidding which, once the reserve price is exceeded, results in the fall of the gavel and an exchange of contracts between the vendor through auctioneer and the successful bidder. Shortly afterwards the documentation is completed and the deposit is taken.

Completion - The completion date (normally 20 working days) is stated in the contract and must be adhered to by both parties. The process is handled fully by the appointed legal professionals. They are supplied with full notification of sale and deposit monies less our sales costs. Arrangements should be made to hand over the keys and take final meter readings the day before completion is set to occur.