Farrell Heyworth Estate Agents help you find your next home, sell your current home or rent out your property. We are a one stop shop because we specialise in Residential Sales, Lettings, Auctions, EPCs, Mortgage Services, Conveyancing and Surveys and Valuations. FH are one of the largest independent estate agency groups, with over 600 Home Sale Network offices and 20 Farrell Heyworth offices in the North West.
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This week’s guest blog comes courtesy of Auction House Lancashire, Auction Director Oliver Adams. He’s here to give you an introduction into the world of property auctions. Once the preserve of canny property professionals auction is now fast becoming an option for anyone who wants to snap up a bargain.

Buying property at auction can be nerve wracking, exhilarating and, when done right, a fantastic investment. But before you can begin to bid there are a few things to bear in mind:

Find the Right Property


On our Auction House website you’ll find a regularly updated list of properties for sale at our next auction. Along with key information such as the address and guide price for the property you’ll find full details and legal documents relating to the property, alongside advice about securing finance. We would recommend careful scrutiny of these documents. Once the hammer goes down you’ve entered a contractual agreement to purchase a property so you need to know exactly what you’re bidding on.

Legal Pack


Once you have viewed the property you will need to check the legal pack, this contains the contract of sale, any special conditions, along with in most cases searches, fixtures and fittings lists, property information forms, land registry plans, leases, EPC and any other documents the seller and their solicitors provide. If the property is tenanted it should contain a copy of the lease. Do get legal advice on the legal pack and make sure you check the completion date, in some cases you will be required to complete earlier than 28 days.

Book a viewing


Whilst it’s essential you scrutinise the documents relating to a property, we feel it’s always a good idea to view the property for yourself. That way whether you’re purchasing the property as a landlord, for other business purposes or as a family home you can ensure that the space, location and local amenities are the right fit. Should the property require structural amendments or repairs you may wish to ask an architect or tradesman to accompany you on a viewing, which we are more than happy to accommodate.

Ensure you have finances in place.


On the day of the auction you will be required to demonstrate that you can pay the 10 per cent deposit for your property. Should you be successful you will be required to pay that on the day, the remaining 90 per cent will be due within 28 days so it makes sense to ensure you will be able to raise that amount before making any bids. Be aware that failure to realise the remaining 90 percent within the allotted time could lead to you forfeiting your deposit.

On the Day


When you arrive at the auction our staff will ask you to register, to do this you’ll require the following:

 1) Photo ID such a valid Passport or Driving Licence
2) Proof of address such as a recent utility bill, bank statement or council tax bill. (No more than 3 months old)
3) Solicitor's contact details
4) Means to pay the deposit and fees should you be successful - cheque OR debit OR credit card (please note there is an additional 2.5% charge for using a credit card). WE CANNOT ACCEPT ANY CASH

What you would need to pay on the day


If you were a successful bidder you would need to pay a 10% deposit (subject to a minimum £5,000) and our Administration Fee which is 0.6% inc VAT (subject to a minimum £600+VAT). Some lots may also have additional Buyer's Premiums. We clearly display these on the property's catalogue page and on our website and we would advise that you check whether or not the lot you are interested in has a Buyer's Premium before bidding.
 

By proxy


Proxy bidding is used when you cannot attend the auction. You submit a bid in writing on a proxy form and authorise Auction House to act for you. You authorise them to bid in the auction room on your behalf up to your maximum. The bidding is made in increments as the auction progresses. They do not automatically offer your maximum amount and will try and buy the property for you at the lowest amount possible. If you authorise a maximum bid of £95,000 yet in the auction room you have the final bid at £90,000 and this had exceeded the reserve price, you would be successful in buying the property at £90,000.

By Telephone


A telephone bidding service is also available you those unable to attend. Telephone bidding allows you to bid on a property during the auction whilst on the phone to a member of the Auction House team. We would call you a few minutes prior to your chosen property being offered for sale and repeat the auctioneers words to you and you would then instruct the team member when and how much you wish to bid.   

For more information about our upcoming auctions or to find our latest catalogue go to www.auctionhouse.co.uk/lancashire or www.auctionhouse.co.uk/manchester

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