Q) IS MY PROPERTY GOING TO SELL?
There are two components needed to maximise the chances of a sale through auction: Firstly, a motivated and realistic seller, and secondly, great marketing exposure. If you decide to explore the auction route further, a member of our auction department will carry out research and honestly discuss the best pricing strategy to maximise interest in your property. However the final decision will always lie with you, the seller.
Q) HOW LONG DOES THE AUCTION LAST?
How long the auction lasts will be agreed with you once the auction pack, however most properties are offered on our auction site for 30 days. You can tell how much time is remaining on a specific auction by looking on the search section or by clicking in to the property details where the time remaining will be displayed in the top left-hand corner.
Q) DO I HAVE TO ACCEPT THE HIGHEST BID FOR MY PROPERTY?
Not at all. Each property has an "undisclosed" Reserve Price, this is the minimum amount that you agree that you are willing to accept for your property. Only the Start Bid and any bids received are visible as the reserve price remains confidential. If the Reserve Price has been met when the auction ends, or you accept a bid to end the auction early, a sale will then be agreed.
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. Each Starting Bid has a corresponding Reserve Price.
Q) WHAT IS A RESERVE PRICE?
This is the minimum price that agree you would be happy to sell your property for. This figure is kept private and is not disclosed to interested parties, however as a guide the reserve is generally no more than 10% in excess of the Starting Bid.
Q) CAN I ACCEPT BIDS OUTSIDE THE AUCTION PROCESS?
Yes, if you want to accept a bid to sell your property before the auction has finished that’s fine. We are duty bound to put any offer for the property forward to you, so it is entirely up to you if you want to accept an offer and take the property out of the auction early. Your buyer will still be bound by the terms and conditions of the auction.
Q) ARE BIDS LEGALLY BINDING?
With the Modern Method of Auction; the bid binds the buyer to pay a reservation fee and sign a reservation agreement. It does not bind the buyer to buy the property but instead allows them to reserve the right to exclusively exchange contracts on the property at an agreed price within 56 days of the bid being accepted.
Q) WHAT IF THE RESERVE PRICE IS NOT MET?
If the reserve price is not met during the auction, we will communicate with you and any interested parties to see if a sale can still be achieved.
Q) HOW QUICKLY WILL I NEED TO MOVE OUT?
If you are living in the property, you need to vacate the property prior to completion taking place. With the Modern Method of Auction the winning bidder has 56 days to complete the purchase from when the Draft Contract is received by their solicitor from your solicitor.
With the Traditional Method, exchange takes place straight away and a date for completion will be agreed at that time, however, the buyer is required to complete within 28 days of exchange taking place.
Q) HOW ARE YOU PAID IF I PAY NO COMMISSION?
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 DO YOU USE SOLE SELLING RIGHTS AGREEMENTS?
Sole Selling Rights means that the property can only be marketed and sold through IAM Sold and your Estate Agent whilst it is under contract. This type of agreement is typically used with auctions as the seller is required to proceed with the winning bidder when the auction ends, and the reserve price is met.
Q) WHY DO I NEED TO COMPLETE AN IDENTIFICATION PROCESS?
All Estate Agents and Property Auctioneers are obligated under the Money Laundering Regulations 2017 to make enquiries of you in order establish your identity and our dedicated compliance team will help guide you through this process.