What is a property auction house?
A property auction house is a company that facilitates the buying and selling of property.
A property auction house may sometimes refer to the facility that an auction is taking place.
Property auction houses are typically located in major cities and offer their services to the public. They may sometimes be referred to as an “auction house” or facility where auctions take place, but they differ from a traditional auctioneer’s company in that property is sold through many different channels including online bidding, phone bidding, live bids at the auction site itself.
Property can also be purchased without attending an event by way of absentee bids which must often meet certain criteria before being accepted for consideration by the seller.
Auction House Conditional property auction
Auction Houses offer conditional auctions on property auctions.
What is a conditional property auction?
Conditional property auction is where a property is offered in the auction room under a best bids process where the winner secures a period of exclusivity. The exclusivity period is defined by the agreement terms but is usually four weeks. The property auction purchaser will use the exclusivity period to finalise matters such as their mortgage funding. The successful property auction bidder will pay a non-refundable reservation fee to secure the exclusivity.
Conditional property auctions are a way for buyers to secure exclusivity on the purchase of an auctioned home. The agreement terms will define the length of this period, which is usually four weeks but can be shorter or longer depending on what both parties agree upon in their contract. At the end of this time frame, if no other bids have been accepted by that point then they will win exclusive rights to buy it at whatever price was agreed upon when they made their bid during an auction session.
Conditional property auctions allow buyers who might not otherwise qualify for financing due to lack off-the-plan properties available in UK’s current market conditions more time and flexibility as well as provide sellers with another avenue through which potential purchasers can express interest without having them wait until after settlement day before making any offers.
What is an online property auction?
Auction houses are increasingly offering online property auctions as an alternative to in-room property auctions, particularly since the onset of COVID-19.
Online auctions are akin to eBay style bidding, where auction properties are offered on a web-based platform.
On online auctions, Auction houses offer property auctions conditionally as stated above or unconditionally.
It is important for buyers and sellers alike to know that there will always be some form of risk involved when it comes time to bid at an online auction site; however with the right knowledge about how they work you should have no problem finding success!
What is an unconditional property auction?
When an auction house offers a property for auction on an unconditional basis, it means contracts are exchanged to the highest bidder on the fall of the gavel. It is imperative to have an auction legal pack in the circumstances.
The auction legal pack is a set of documents that must be prepared by an attorney to ensure the legality and enforceability of any agreements made during the course of an auction. The most important document in this package is typically the contract for sale, which states terms agreed upon between buyer and seller at bidding’s end. It may also include other necessary paperwork such as transfer tax certificates or affidavits from both parties, depending on jurisdiction.
Can I bid online for a property auction?
Many auction houses are now offering facilities to allow property auction purchasers to bid online for an in-room auction lot. The preferred methods of non-attending bidding are still the traditional methods such as telephone or proxy bidding as there remains a real risk in relation to internet connectivity when it comes to online bidding.
Would an auction house accept offers made before the property auction date?
Every auction house is different. Some auction houses promote pre-auction property auction offers. Other auction houses take a dim view towards property auction offers made before the auction for a variety of reasons. It is worth noting that some auction properties are required to be sold publicly in the auction room.
We would encourage you to thoroughly inspect the legal pack prior to making any offers. It may be prudent to get a professional to review the auction pack for you. We offer a fixed fee to review the auction legal pack and provide you with insightful information to help you avoid the common auction pitfalls.
What facilities do auction houses offer to bid when not in the room?
Auction houses can offer a telephone bidding service and a proxy bidding service. Other auction houses allow you to bid live online.
In property auctions, what is a proxy bid?
If you can’t attend the auction in person you can bid by proxy. A proxy bid is where you lodge your best bid with the auction house by completing the relevant bidding forms before the property auction.
You can then instruct the auction house to bid for you up to your maximum limit. This process is also known as absentee bidding and allows people who are unable-to-attend an auction in person due to distance or time constraints, illness, disability etc.
What is a property auction telephone bid?
A telephone bid is where property auction bidding instructions are provided to a member of the auction house team. The auction house team member bids in the room on behalf of the property auction purchaser.
Auction House selling or selling through an agent, what is the difference?
The primary differences between auction house selling and selling through an estate agent are timescale based. Once the hammer falls, exchange of contracts is effected providing a set date for completion, which is ordinarily 28 days.
On the other hand, selling through an agent may result in a relatively speedy sale, but the conveyancing process takes much longer. In some cases, completion can take up to six months depending on a few variables.
Whether you’re buying or selling at an auction, we provide legal services for all your needs!