Going Once, Going Twice, Gone!
10 September 2011After a protracted lull in the property market, we have dusted down our auction gavel for the first time in four years in preparation for Osborne King's forthcoming auction at 11.00 am on Thursday 29th September 2011 when up to thirty lots will be offered for sale. Properties due to go under the hammer include an even split of residential and commercial properties located across Northern Ireland with maximum reserve prices ranging from £40,000 to £175,000.
A public auction is an excellent way to transact property offering both the vendor and purchaser an opportunity to dispose of or acquire an asset within an open and transparent environment. The purchaser can see the "competition" and bid directly against them thus having the opportunity to try and acquire a particular lot within an extremely short period of time. This method of sale offers both parties involved in the transaction a strong degree of assurance subject obviously to the reserve figure set by the vendor being achieved on the day. Upon the fall of the gavel, both vendor and purchaser enter into an unconditional contract and a deposit, normally 10% of the purchase price, is paid over on the day.
Although purchasing at an auction may appear daunting, the process is relatively straightforward with a number of simple steps to be followed in advance of the auction day:
1. Review the auction catalogue and highlight the property or properties of interest.
2. Check the reserve figure or guide price. The reserve price is the lowest price that the vendor is willing to accept for the property.
3. Register and liaise with the selling agents during the pre-auction marketing period so that you are fully informed of any changes including offers and lot information. Any material changes will be listed under the "Addendum" which will be prepared by the auctioneer.
4. Inspect the property prior to the auction.
5. Instruct your solicitor to review the legal pack prepared by the vendor’s solicitor. This will contain information such as contract, property certificates , reports, searches and replies to pre-contract enquiries. Make sure that your solicitor is satisfied and makes you aware of all relevant information contained within the legal pack.
6. Arrange a survey of the property well in advance if required.
7. Arrange finance in advance and know your purchase price limits.
8. If you are successful on the day, you will be required to enter into an unconditional contract and pay a deposit with completion of the sale usually within twenty working days thereafter.
We strongly advise that you take your own independent advice in all respects prior to the auction. On the day of the auction, it is advisable to arrive early and register at the registration desk if you intend to bid (bring photographic ID and proof of address). You will then be given a bidding number card which you should use to bid with and make yourself known to the auctioneer when your lot is offered to sale. As long as you have carried out the full pre-auction checks, sit back and enjoy the process!