For many, bidding at auction for the first time can be daunting, but it doesn't have to be! We’ve put together a step-by-step guide to walk you through the process…
1) FIND YOUR PROPERTY
The first thing you need to do is find the right property for you. You’ll find all our lots listed on our website, as well as all major property portals. Make sure you read the details carefully and note any auction fees that may be payable. You can also sign up for our mailing list to stay informed of our latest properties for sale and receive our latest auction catalogue.
2) DO YOUR RESEARCH ON THE PROPERTY
Once you have found the lot you are interested in, get in touch with our team. We may be able to provide you with a bit more background into the property and answer any questions. We can also let you know when you can view the property.
3) GET A COPY OF THE PROPERTY LEGAL PACK - AND CHECK IT!
A legal pack is the set of documentation prepared by a seller’s solicitor containing important documents relating to the sale of their property, such as title documents and Special Conditions of Sale. The Special Conditions of Sale will include pertinent information such as completion date, any additional disbursements that become payable on completion, and overage clauses.
Legal packs are made available for every property we sell and are uploaded to our website for you to download. It is always advised that you ask your solicitor to read through the pack, as their advice at this stage could prove invaluable as you cannot change your mind after the hammer falls.
4) ENSURE YOU HAVE FUNDING IN PLACE TO BUY
When that hammer falls, you'll be required to pay a non-refundable deposit (10% of the purchase price, subject to a minimum amount) as well as the auctioneer’s administration fee. These figures can be found on the property listing page on our website and in our auction catalogue. The remainder of the purchase price and fees will be needed for completion, usually within the following 28 days.
Many auction buyers purchase in cash, but buying with a mortgage or bridging loan is perfectly reasonable. If you require any sort of borrowing, it is vital to arrange it before bidding and that your broker or lender is aware that the property purchase is at auction. We work in partnership national specialist lender, Together, who can provide finance designed for auction purchases. They pride themselves in providing a quick turnaround of funds, which can be agreed before, during or after the auction, to guarantee funds will be available in time for completion. This then allows you time to arrange a mortgage or another long-term funding solution that is right for you. For more information about Together, visit their website or call us on 0141 339 4466.
5) REGISTER TO BID
To bid in our auctions, you will need to pre-register. At our in-room auctions, you have the option to come along and bid in person or bid via telephone, online bidding or by proxy.
If you are bidding on a property which has been entered into one of our online auctions, bidding is conducted online only in an eBay-style format.
Non-attending bidding registration is completed via the link on our website. Registration for our in-room / livestream auctions opens typically one week before auction day. If you are joining us to bid in-person at auction, you can register at the venue on the day.
In all cases of registration, you will be required to provide/upload photo ID and proof of address, and we will use a reservation system to pre-authorise payment of £6,000 if you are a successful purchaser.
6) AUCTION DAY
On the day of our in-room auction, you can tune in to watch the livestream on our website and sign in to bid via your chosen method (if you are not attending the auction in-person). Be confident and proactive with your bids so your competition knows you are here to buy the property. Many people lose out on their purchase simply because they waited too long to place their bids.
7) POST AUCTION
If you are the winning bidder – congratulations! You will need to complete the Minute of Preference and Enactment, and pay your deposit and fees. You’ll exchange contracts immediately and will complete on your property purchase with the following 28 days.
If a property fails to reach its reserve and it is not sold in the room, you can speak with a member of our team to express an interest. It may be possible to negotiate a sale after the auction, which would proceed under normal auction rules.
If you have any further questions about buying a property at auction, our team are here to help. Please drop us an email to info@auctionhousescotland.com or call us for a chat on 0141 339 4466.
