Q) HOW LONG DOES THE AUCTION LAST?
This can very much depend on the seller’s circumstances or the level of interest generated in a property during the Pre-Auction Marketing period. Properties may end up live for a matter of days through to a matter of weeks. We would highly recommend registering your interest against the property via the Watch List facility and making sure that you have viewed the property. Our Auction Specialists will keep all interested parties updated and should the vendor decide to end an auction, or accept a bid prior to the end of an auction, then they will communicate this. If we are unaware of your interest in a property it is difficult to communicate any changes in circumstance.
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. We would highly recommend doing this even if you are only initially ‘browsing’. Once you have completed the registration form, you will be sent a welcome email confirming that you are registered to bid and able to place bids online. Alternatively, you can call and speak to one of our Auction Specialists by calling 0345 646 0302 and they will be happy to place a bid on your behalf. We would recommend that you have viewed any properties in question and looked through the legal information supplied within the Auction Pack for each Lot.
Q) CAN I PLACE BID AT ANY POINT DURING A PROCESS?
Bids, or offers, can bid placed at any stage during an auction process. Even if the property is in “Pre-Auction Marketing” status, although you would need to consider that the Auction Pack has not been signed off. 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 to grant an exclusivity to the property. It does not bind you to buy the property but reserves you the right to exchange contracts and complete on the property at the agreed price within 56 days of draft contracts being received by your Solicitors. With the Traditional Method of Auction, once your bid has been accepted, or auction has been won, then you are required to exchange contracts and pay a 10% deposit alongside the Reservation Fee. Completion is generally expected within 28 days of exchange.
Q) HOW ARE YOU PAID?
This will depend on the terms that the vendor has chosen. Predominantly, the buyer pays a non-refundable Reservation Fee when the auction is successfully concluded. The fee is held by iamsold 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 who work in partnership to provide the auction.
Q) WHY WOULD SOMEONE PAY A FEE TO PURCHASE A PROPERTY?
Usually, the vendor chooses for the buyer to pay the Reservation Fee as a sign of commitment and agreement to the auction terms. As the vendor does not have to cover this cost, they are aware that the buyer is required to consider this on top of a purchase price. Most vendors have decided to use the auction method due to past experiences on the open market or are motivated by security and speed of sale over potential price achieved.
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 to sell. As the buyer, as well as paying the Reservation Fee you also sign a Reservation Agreement which provides commitment between yourself and the seller to complete the transaction, reducing the risk of a sale not completing. The seller is also bound by the same terms.
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. In all circumstances we would recommend discussing this with your chosen Solicitors prior to committing to a bid.