Q) HOW LONG DOES THE AUCTION LAST?
Most auction properties on the site are live for 30 days, and at any point during this time you can place a bid on a property. To see how much time is remaining on a specific auction, click on the search section or on the property details where the time remaining will be displayed.
Q) WHAT IS A STARTING BID?
With every auction there will be a starting bid. This is the price published for each property and confirms the level at which the bidding will commence. Starting Bids are for guidance only, they are not the price that the property is being sold for. The starting bid may occasionally change during the marketing period. Each Starting Bid has a corresponding Reserve Price.
Q) WHAT IS A RESERVE PRICE?
This is the minimum price that is acceptable to the seller for selling a subject lot in the auction. We do not publish reserve prices; this figure is a private agreement between the seller and the auctioneer, however as a guide the reserve is generally no more than 10% in excess of the Starting Bid. Both the Starting Bid and Reserve Price can be subject to change
Q) HOW DO I PLACE BIDS?
Firstly you will need to register with us and a link to the registration form can be found on the top bar of the home page. Once you have completed the registration form, you will be sent a welcome email confirming that you are registered to bid. Alternatively you can call and speak to one of our auction specialists and they will place a bid on your behalf.
Q) CAN I PLACE BIDS OUTSIDE THE AUCTION PROCESS?
If you would like to place a bid on a property before the auction has finished it will be dealt with on an individual basis. By law we must put any offer that is made forward to the seller. It is then up to the seller to decide if they want to consider the offer and take the property out of the auction early. In this scenario the reservation fee is still payable, and the terms and conditions of the auction still apply.
Q) IS THE BID BINDING?
In the modern method of auction, the bid obliges you to pay a reservation fee and sign the reservation agreement. It does not bind you to buy the property but reserves you the right to exchange contracts and complete on the property at an agreed price within 56 days of the bid being accepted.
Q) HOW QUICKLY DO I HAVE TO COMPLETE THE PURCHASE?
With the modern method of auction, when the auction closes the winning bidder has 56 days to complete the purchase from when their solicitor receives the Draft Contract from the sellers solicitor. This additional time makes it more appealing to those buying with finance or a mortgage because there is more time to get the necessary paperwork completed.
Q) WHAT IF THE RESERVE PRICE IS NOT MET?
If the reserve price is not met during the auction, we will communicate with the seller and any interested parties to see if a sale can still be achieved. If you are interested in an unsold lot, please contact a member of the auction team.
Q) HOW ARE YOU PAID?
Unlike private treaty, the buyer pays a non-refundable reservation fee when the auction is successfully concluded. The fee paid is typically 4.2% including VAT of the final purchase price and is subject to a minimum payment of £6,000 including VAT.
The fee is held by IAM Sold to reserve the property to the buyer and show their commitment to the purchase. It is later used to pay the Estate Agent and Auctioneer.
Q) WHY WOULD SOMEONE PAY A FEE TO PURCHASE A PROPERTY?
When looking to buy a property most people will look at a total purchase price with the fee included and all of the lots available through our online auction are priced realistically and to sell.
As the buyer as well as paying the reservation fee you also sign a reservation form which provides commitment between yourself and the seller to completing the transaction, reducing the risk of a sale not completing.
Q) WILL PAYING A RESERVATION FEE INCREASE MY STAMP DUTY LIABILITY?
Current HMRC policy is that the chargeable consideration (monies or monies worth) for a land or property transaction is what has been given (either directly or indirectly) in order to acquire the subject - matter of the transaction, by the purchaser or a person connected with them.
This includes fees which have to be paid in order to acquire the property. This means that whatever the buyer pays, it will form part of the purchase price for the property and it will be included in their liability for stamp duty.