Secrets of Auction revealed: The speed, transparency and efficiency of the auction sale

Rocket science it is not. However, plain and extremely simple it indeed is! When a property is offered for sale by auction, the first thing we do as auctioneers is to write to our client’s solicitor requesting a full legal pack which is likely to comprise of the following documents:
• Office Copy Entries (Title Register)
• Title Plan
• Replies to pre-contract enquiries
• Local search
• Planning permissions & building regulation consents
• Any relevant notices
• Special and general conditions of sale
• Any other relevant documentation
• Copy of lease
• Leasehold management replies to enquiries

The cost of the preparation of the above legal pack is repaid back to the seller by the purchaser upon completion in addition to the selling price!
Once received, this information is collated by us and placed within our legal pack download facility that is incorporated on our website, whereupon having viewed the property in question, the intending purchaser is able to go online, download each and every document within the legal pack and send it straight to their solicitor for approval.

From the time of the viewing to exchange of contracts was one and a half hours

With the approval received, the buyer will then contact us to make a pre-auction offer whereupon in the event such an offer is accepted and once our client’s consent has been obtained, the buyer is able to immediately attend our offices with their 10% deposit, sign an auction contract and exchange there and then! The same principle applies to the day of the auction itself, the only difference being that the highest bidder wins with the successful bidder’s due diligence already having been undertaken in exactly the same way.

As we only tend to deal with cash purchasers who are not involved in any chains, we are very easily able to orchestrate this method of sale whereupon as a result of this, we never have to encounter:
• A single abortive sale
• Breakdown of chains (there aren’t any!)
• ‘Bad surveys’ or ‘down valuations’ by building society/bank valuers
• Renegotiation of the price as the price agreed is the final selling price
• Any delays whatsoever as once an offer is accepted, contracts are exchanged immediately with completion normally 28 days later
• Anything other than full market prices being achieved

A typical example of how we are able to conclude a sale so quickly and efficiently was highlighted in June last year when a property in Hove was viewed at 3pm on a Thursday afternoon. The applicant made an offer at 3:10pm and attended our office at 4:40pm and exchanged contracts. Prior to the viewing having taken place, the legal pack had been downloaded and approved. From the time of the viewing to exchange of contracts was just over one and a half hours. A stark contrast to the historic months it normally takes to reach an exchange of contracts under the private treaty method of sale!

Block viewings are held twice the week for half an hour per visit during what is a very intense and concentrated marketing period leading up to the day of the auction at pre-arranged times that are strictly adhered to, thus causing the minimum amount of disruption to whoever is living in the properties, tenants in particular.

On the day of the auction with your due diligence fully completed and your 10% deposit to hand, a very simple auction registration form is completed whereupon you will receive a paddle which includes your personal bidding number. You will also receive an addendum which is a very important document as this includes any last minute changes to the property you are interested in buying.

You are now ready to bid for your property and in the event you are the highest bidder, and assuming that the reserve has been reached, the auctioneer will announce “going once, going twice, for the third and final time, sold” and bring down his or her hammer and it is at this point you are legally committed to purchase the property, normally 28 days later. Therefore it is vital you have the funds available to complete the purchase at this time.

Thinking of buying or selling in 2017 and would like further advice on auctions or would like to arrange a free, no obligation valuation? Please contact either Simon Caplin (01273 274010, simoncaplin@psandb.co.uk) or Kelly Landers (01273 274014, kellylanders@psandb.co.uk) from Parsons Son & Basley’s Auction Department or visit www.psandb.co.uk