Buyers Auction Guide

If you are interested in buying property at one of Surelock Network Auction’s sales but have never attended an auction before, the following step-by-step guide should prove useful:

  • Ask Surelock Network Auctions to place you on their mailing list. This will ensure you receive the catalogues of properties to be sold at their next auction, including a guide price and floor plan.
  • If, after taking a good look through the sale catalogue a property or two catch your eye and fit your purchasing criteria arrange a viewing with Surelock Network Auctions and request the legal pack, which has been compiled by the seller’s solicitor and tends to contains copies of the Title Deeds, Special Conditions of Sale, Land Registry Search, Leases (if applicable), the EPC certificate and other important documents, and read through it carefully.
  • At the viewing have a good look around and take detailed notes about the property, consider the details you learnt from the legal pack and also what work might need to be done. If building work is required then contact a competent builder for an estimate of the work involved.
  • If you find a property or properties that you are seriously considering bidding on, take a thorough look at your finances. You must ensure you are in a position to pay the 10% deposit if you make a winning bid, and that you can have a suitable mortgage promise from your lender – if applicable. The reason for doing this now is due to the speed of a purchase made at auction and because a successful bid when the gavel falls means you have entered into a legally binding contract to purchase that property. If you require a mortgage to make the purchase it is not advisable to make bid at auction without having a mortgage promise in place.
  • Arrange a survey for the property or properties you plan to bid on for your mortgage lender – if applicable – who will require a valuation or survey before the auction to verify its guide price. For properties in need of building renovation work it is advisable to book a full structural survey. Even if on a rare occasion the auctioneer pack already contains a survey, it is worth commissioning your own in order to satisfy your lender and yourself.
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The buyers auction guide process continued

  • Identify and consult with a solicitor before the auction, and take this opportunity to ask any questions relating to the information contained in the legal pack. Again, the reason for doing this pre-auction is because much of the conveyancing work on a prospective property purchase can and should be done before the auction takes place in order to have everything in place to conduct the completion of the sale in as timely a manner as possible. The conveyancing work your solicitor or conveyancer should have done before the date of the auction includes carrying out checks such as any legal problems with ownership and planning applications in the area.
  • Work out the maximum bid you are willing to make on auction day. It is essential to take into account all the costs associated with your potential purchase when calculating your maximum bid: possible building work, solicitor’s fees, stamp duty and moving costs, if any.
  • Prepare yourself for the Surelock Network Auction sale that you plan to make a bid at. Many experts advise attending a few auctions as a spectator before bidding and making your first purchase at one. Going to other auctions ahead of THE ONE will help to make you comfortable with the process and the excitement that can build.
  • It is advisable to ring Surelock Network Auctions on the morning of the sale to confirm the lot or lots you plan on bidding for are still available and will feature in the auction. If the property you have been looking at HAS been withdrawn, then it is worth looking through any other emails or post you have received from Surelock Network Auctions as that will contain information on other properties that fit your criteria. If any do and are available on the same day, make sure to read through the legal pack ahead of the auction to avoid any nasty surprises if you are successful. Please be aware that property lots can be sold at ANYTIME ahead of the auction, including in the final minutes before the auction begins, and subsequently withdrawn.
  • When you attend the Surelock Network Auctions sale you plan to bid at make sure you bring all the details of the property or properties you want to bid on, two documents proving your identity and the funds available to make a debit card payment of 10% of the maximum price you are willing to pay.

 

The buyers auction guide looks at the Auction Day!

  • When you arrive at the Surelock Network Auctions sale you’re planning to bid at you need to register with the administration team who will give you a number. You will need to give this number to the auctioneer if you make a winning bid.
  • The bidding on each lot will start below the guide price and move up in various increments, dependent on the lot and the dynamics of the room on the day. A reserve price will already be fixed for each lot and if the property fails to meet this it will not be sold. It may be possible to contact the seller directly if this happens to see if you can negotiate a sale afterwards.
  • The time has come and the property you want to bid on is up next, what do you do? If you’re not confident to make the first bid listen very carefully to what prices are being bid and then raise your hand, paddle, number or catalogue when you want to make a bid of your own. Always keep in mind the maximum price you set yourself and try not to get carried away!
  • If the gavel goes down on your bid, this means you have made a successful winning bid and have agreed to enter a legally binding contract to purchase the property at that price. You will then be required to pay your 10% deposit, give proof of your identity and your solicitor’s details. In return you will receive the legally binding contract to purchase the property and must achieve completion – including paying the remaining amount due on the property, within 28 days. Make sure insurance is in place.
  • While you still need to complete all the same checks, surveys and details that are required when you purchase a property through an estate agent, the end process is much quicker, and also completely transparent. From the date you make your winning bid on the auction contracts are exchanged and you know you will be the proud owner of the property you want without having to worry about being gazumped, gazundered or losing the property or your deposit due to anyone but yourself.
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