Introducing Auctions

By James Emson, Managing Director, Clive Emson Auctioneers

We live in a world where we expect everything to be done yesterday. Yet “good things come to those who wait”, or so the saying goes – and that is exactly what property is all about.

Bricks and mortar have traditionally been a medium to long term investment, not something bought today and sold tomorrow making thousands of pounds in the process, although, occasionally that’s exactly what happens.

High risk strategies will always give the promise of an overnight fortune but with interested rates remaining low investing in property needn’t be a risky business!

Many of the hundreds of lots that we, at Clive Emson Auctioneers, offer annually across southern England require renovation, improvement or have potential for extension, which to a prudent buyer will offer a fantastic opportunity to add value.

With the old saying Caveat Emptor (Let the buyer beware) resonating in our minds many people ask how safe is it to buy a property at auction?

“At the fall of the auctioneer’s gavel a legal contract is made, you don’t need to be a property professional to buy at auction but you do need to ensure you are prepared and have done all that a prudent buyer would do before entering into a contract.”

By following these five golden rules you could find yourself reaping the rewards of a successful and quick transaction.

1. Look through the auctioneer’s catalogue to identify any lots which are of interest. The lot information will provide you with viewing details allowing you to book an appointment. The catalogue will also provide photos, elevations, location plans and more importantly a guide price.
2. Obtain a copy of the legal documentation. This is the information the seller’s solicitor provides and can include special conditions of sale (which may contain extra fees and cost in addition to the bid price), local authority searches and in the majority of cases all the documentation required for making an informed decision on whether to bid or not. It is important to remember that if you are not fully au fait with property law you should seek independent legal advice from a solicitor or licensed conveyancer.
3. If you require a survey have this carried out before you commit yourself to a legally binding contract.
4. If you are successful you will be normally be required to pay a 10% deposit in cleared funds (or £3,000, whichever is the greater) to the auctioneers at the point of exchange, together with the auction administration fee bit you should check the documents and terms as this on rare occasions can vary. If you require finance, again, arrange this before committing yourself to the contract.
5. Arrive on the day of the auction in plenty of time. You will need to register and obtain a bidding number without this you may not be able to bid and may have your bid refused by the auctioneer. Don’t forget to pick up a copy of the addendum (a list of amendments to the catalogue or documentation which will form part of the contract) and finally…..relax!!