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Our Auction Sales Methods

To cater to our wide range of clients from landlords, social housing providers to the average homeowner, Property Solvers offer both traditional (28-day) and modern method (56-day) options.

Traditional 28-Day Auction
(Unconditional)

  • List your property on our market-leading auction platform in a just a few days
  • Easy to use ‘eBay-style’ secure bidding platform (see our example listing)
  • Secure a committed buyer and exchange contracts within 3 weeks of listing on our auction service
  • Rigorous buyer ‘Pre-Approval’ checks carried out before the auction
  • Discounted legal packs available
  • Direct access to the UK’s largest property investor / auction database and 45,000+ strong LinkedIn membership group
  • Excellent exposure on the major portals including Rightmove, Zoopla, Prime Location and many more;
  • 24-hour enquiry line and buyer viewings available 7-days a week
  • Buyers can bid from anywhere in the UK (or the world) from the comfort of their own home – 24/7
  • “Buy it Now” and cash buyer options available (to sell even faster!)
  • Low sale fall-through rates

Modern 56-Day Auction
(Conditional)

  • All the benefits of selling through a 28-day auction
  • Provide sellers with the opportunity to achieve higher estate agency prices with the security of sale that auctions bring
  • Longer sales timeframes that enable buyers to organise more competitive auction finance
  • Deal with serious buyers (no-timewasters) who undergo a thorough buyer checks
  • Winning bidders are charged a non-refundable reservation fee, committing them to the sale
  • Exchange of contracts occurs 4 weeks after fall of the online hammer with completion another 4 weeks (our sale completions are 50-80% quicker than using an estate agent, without compromising on price)
  • No waiting times for auction catalogues and maximum exposure to buyers (on all the major portals)
  • A great way to sell land, commercial and mixed-use properties (much faster than private treaty)
  • Ask us about our 6-week (42-day) unconditional sales options
  • Very slim chance of sale collapse (due to built-in procedural checks and guarantees)

FREE Auction Valuation Report

Property Solvers House Valuation Report

How Our Property Auctions Work

Initial Phone Discussion with Seller

Initial Phone Discussion with Seller

Sellers reach out to us via our online form or calling our 24/7 property auction call centre on 0800 044 3922.

We start by having a discussion about the current sales situation, specific details on the property and what the price expectations may be. The aim here is to find out whether using an auction service like ours is genuinely the best way forward.

For instance, we sometimes see that our fast house sale or quick estate agency options may work better.

We’ll also run through our auction process in however much detail as desired. There will never be any pressure to use our service and appreciate that sellers may simply just be making enquiries.

Auction Property Factfind and Valuation

Auction Property Factfind and Valuation

Our sales manager will ask some headline questions regarding the condition of the seller’s property and request other specifics.  This can include tenancy agreements, leasehold / freehold documentation, relevant covenants and other confirmations (that can be forwarded to [email protected] or the direct email provided).

The more information we can feed into our valuation modelling here the better.  We’ll then use specific Royal Institute of Chartered Surveyor (RICS) guidelines / red book standards that adopt HM Land Registry sold price data to revert back to the seller with a recommended guide and reserve prices for auction. We can also value property portfolios of any size.

We also have an auction industry-specific valuation report which contains a range of detailed and relevant information.  We’re more than happy to run this off for both auction buyers and vendors.

Seller Decides on Unconditional or Conditional Auction

Unconditional or Conditional Auction

Choosing between a shorter (28-day) or slightly longer (56-day) auction timeframe will often depend on the vendor’s own plans as well as the condition and marketability of the property.

For instance, if the property is unmortgageable, in probate (inherited) or the seller would prefer a cash buyer only transaction, the 28-day (unconditional) auction is the better option.

Others are happy to wait longer and open their property to retail buyers (i.e. those that will typically buy with a mortgage). Here, our 56-day sale would be the better option as we can still take a non-refundable deposit to secure the sale when the virtual hammer falls.

The exchange of contracts happens after 28 days meaning the buyer would need to pay the 10% deposit and complete the sale within the following 28 days.

Alternatively, the seller may wish to dispose of the property as a private sale (to a We Buy Any House company, for example).

Suggested Guide and Reserve Prices

Suggested Guide and Reserve Prices

Our recommended prices for auction often depend on the property’s size, location and condition alongside seller objectives to name a few of the factors involved.

The guide (advertised) and reserve (minimum) prices are also based on whether the seller chooses our unconditional (56-day) or conditional (28-day) option.

Typically, as there is more time with our conditional (56-day) sale, we would normally suggest a guide price of 90% of the market value with a reserve of 85%. However, it’s not uncommon to see properties sell for 100% of their market value.

With our 28-day auction sales, we usually recommend a guide price of 85% and a reserve of 80% of the valuation.  Similarly, it’s not uncommon to see properties with these auctions achieving well above their guide prices.

Above all, as auctioneers, we’re very conscious of not “over-pricing” properties that attract no bidding interest.  We therefore use our many years of industry expertise to generate strong buyer interest and fair prices for our seller clients.

Indeed, historically, property auctions have always been the best place to let the market do the talking (rather than allow for estate agents and other third parties to have what can often be a speculative influence on pricing).

Auction Agent Viewing / Confirmation

Auction Agent Viewing / Confirmation

Although not always necessary, we can visit the property and meet the seller 7 days a week at a time that suits the current owner or tenants residing at the property.

Sometimes, especially if the legal pack is already prepared, it makes sense for us to take photos and produce a floorplan at the same time.  We can also organise the Energy Performance Certificate (EPC) at the same time if necessary.

Unlike most auction houses, this – combined with our unique capacity to upload properties in as little as 24 hours – means we can get properties to market in just a few days.

Note that we operate across the UK (see our local and regional auction pages)

RICS Survey

RICS Survey

Sellers are under no obligation to book a Royal Institute of Chartered Surveyors (RICS) valuation.

It can, however, sometimes encourage more potential bidders as more feel comfortable with proceeding and things are being kept transparent.

Many sellers we work with often have RICS reports which can be of use, provided they are relatively recent (ideally under 3 months old).

Property Auction Terms and Conditions

Property Auction Terms and Conditions

For all our auction sales, Property Solvers observes the 4th Edition of the ‘Common Auction Conditions’ reproduced with the consent of the Royal Institute of Chartered Surveyors).

We also require sellers to digitally sign an agreement prior to initiating the promotion process.  This will protect all parties involved in the transaction.

Auction Legal Pack

Property Auction Legal Pack

We would rarely suggest that sellers proceed with an auction sale without a full legal pack in place. Omitting this key information often means that buyers will feel less confident about the purchase and bid lower

Extra information will also be required if you’re selling a tenanted, pre-repossession, inherited/probate or commercial property / land (including sites with or without planning or legal restrictions such as overages).

Property Solvers have conveyancing partners we can put you in touch with who offer competitive ‘pay now’ and ‘pay later’ options.

Check out our propety auction sellers legal guide which explains how things work in this regard.  Please also feel free to complete this form and our competitively-priced conveyancing partners will reach out to discuss your requirements and quote.

Photography, Floorplan and EPC

Photography, Floorplan and EPC

If this process was not undertaken during our initial viewing, we’ll get these organised for free at a time convenient for the seller or occupants of the property.

We can also arrange for an Energy Performance Certificate (EPC) if this has not been undertaken in the last 10 years. This is a legal requirement prior to marketing a property on the open market.

Advertising for Auction

Advertising for Auction

We take pride in providing high-quality listings and the property will be published on all the major portals to draw in the maximum amount of attention (see where we advertise). Rest assured, this is what we do best!

Property Solvers Auctions also has an excellent social media presence, including via the UK’s largest LinkedIn Group for Property Investors / Developers.

We typically recommend marketing the property for 21 days before starting the bidding process. However, we are happy to adjust this as our seller client’s circumstances dictate.

Viewings and Open Days

Viewings and Open Days

Our experts are available 7 days a week (including evenings) to host viewings anywhere in the UK.

In many cases, we run open days where we invite multiple buyers to view the property. This reduces the level of inconvenience for any occupants.

Provided that the seller is completely comfortable with handing the keys over to us until completion, we are happy to take full control of this process.

For buyers, will also make ourselves fully available to answer any questions relating to the property and can run second viewings when appropriate to do so.  Note that any requests for surveys or other condition reports will be at the seller’s discretion.

Modern Auction Bidder Registration

Auction Bidder Registration

By law, we are required to formally register potential buyers before allowing them to bid on our portal.

This requires us to undertake full identification and Anti-Money Laundering (AML) checks to ensure that there is nothing untoward.

Undertaking this process saves a lot of administrative and legal hassle once the auction process concludes.

Property Auction Bidding

Property Auction Bidding

Prior to the start of the auction and during what is typically a 6-day bidding window, buyers can contact our team for any clarifications through our 24/7 enquiry line.  We also have a series of “auction build up” emails

We typically allow a 48-hour bidding period (at the end of the 6 days) and – in addition to continually monitoring progress – will make ourselves completely available to answer any buyer and seller questions.

There is no limit to the amount buyers can bid up to.  We will send alerts when bids have been beaten (which can also be seen via the listing itself).

Sellers can see bidding activity directly on the portal. We will also advise you of any proxy bids – i.e. where buyers enter a maximum bid and we bid up to that amount on their behalf (similar to eBay). This also means that the sale cannot be gazundered (i.e. see a drop) and things are kept completely fair.

SOLD! At Auction

SOLD! At Auction

At the end of the bidding period, the virtual hammer (“gavel”) will fall and the sale price is confirmed.  Regardless of whether it’s a 28 or 56 day auction sale, the buyer is committed to proceeding.

We will also be communicating with the winning buyer to confirm the next steps, completing the Memorandum of Sale and moving things forward.

The buyer will also sign a Reservation Agreement and/or the exchange contract immediately for 28-day sales.  The latter is usually at the request of the solicitors involved (as some are happy with the Reservation Agreement alone).  Either way, our auction team is happy to work to any request to ensure a smooth sale (and, of course, cover any associated costs).

No Refund Reservation Fee

No Refund Reservation Fee

With both our 28-day and 56-day auctions, the buyer will be required to pay a non-refundable reservation fee of 2% + VAT to secure the property.

We usually take a charge on all bidder’s debit/credit card and the money will be withdrawn from the winning bidder automatically.

This avoids any confusion at the close of the auction.

Exchange of Contracts

Exchange of Contracts

One of the many benefits of selling at auction is that, once the hammer has fallen, the chances of things falling through are slim to none.

With our 28-day (unconditional) auction, the terms and conditions state that exchange of contracts happens at the fall of the virtual hammer. This means that the buyer – unless otherwise agreed – must pay a deposit of 10% (within 24 hours) and complete on the sale within 28 days. Failure to do so could mean the loss of the reservation fee, deposit paid alongside other financial penalties and other abortive costs.

Note that with the 56-day auction, buyers have 28 days after the fall of the hammer to exchange contracts. Similar to the 28-day auctions, buyers will need to pay the non-refundable deposit and face heavy penalties if they were to withdraw from the sale.

Auction Conveyancing

Auction Conveyancing

Although much of the conveyancing work is already completed pre-auction, there will be some final processes to undertake – particularly on the buyers side.

You will also be sent legal documents to sign to finalise the sale.

Completion and Post Auction Sales Assistance

Completion and Post Auction Sales Assistance

Once the sale is complete, the team at Property Solvers will be completely at hand to organise key handovers and assist with any other issues that may emerge.

Common Questions About Our Auction Service

Please also check out our complete Frequently Asked Questions (FAQs) page or contact us directly on 0800 044 3922 (lines open 24/7) or [email protected].

Property Solvers Auctions was originally set up on the back of Directors James Durr and Ruban Selvanayagam‘s 40+ years’ collective experience in direct-to-vendor property sales.

We work differently from many auction houses by virtue of the fact that we are able to list properties in record time and offer flexible options based on our clients’ specific requirements.

With competitive fees, a state-of-the-art bidding platform, the very best exposure / property marketing plans and discounted legal packs amongst many other benefits, our auctions are an excellent way to bypass many of the hassles that come with open market sales.

For buyers, we offer a 24/7 enquiry line, secure bidding, access to competitive auction finance and access to the very best auction opportunities available in the UK.

Our 28-day unconditional auctions adopt Common Auction Conditions (CACs) as governed by the Royal Institute of Chartered Surveyors (RICS)

Essentially, this means that where an auction buyer successfully bids over the undisclosed reserve price, there is a legal commitment to the sale.

Our conditional (56-day) auctions also follow RICS guidelines.  However, our terms state that the winning bidder must pay a non-refundable reservation fee.  The buyer then has a 28-day “exclusivity period” before exchanging contracts (after which there is a legal commitment to the sale).

Although technically buyers could pull out of the sale after winning a bid, they will lose all the reservation fee and potentially face abortive legal (conveyancing) fees.  This is the reason why both our conditional (28-day) and unconditional (56-day) auction sales rarely fall through.

It’s also worth noting that well-known “in the room” auctions – including SDL Property Auctions, Auction House, Town & Country, Future Property Auctions, Strettons, Clive Emson, Allsop and John Pye – now offer online or stream bidding services in the same way as we do.

The property auction industry has evolved considerably over the last decade or so, attracting a wider spectrum of buyers and sellers than was historically the case.

Why 28-Day House Auctions?

At Property Solvers Auctions, we feel it’s important to offer a traditional (28-day) service that enables sellers to list their properties in record time and attract serious buyers into a competitive bidding environment who will exchange contracts at the fall of the online hammer.

Auction sellers know that they will receive the proceeds of sale within a set deadline and buyers can push forward safe in the knowledge that nothing will get scuppered along the way.

Why 56-Day House Auctions?

It’s often the case that traditional auction buyers either need to pay cash or use relatively costly bridging finance.

By extending the timeframes, our 56-day (modern method) auctions attract a wider pool of buyers who can access longer-term mortgage funding sources.

This means that sellers can achieve higher prices with a level of security that’s rarely available when selling via private treaty (i.e. through an estate agent).

Absolutely, Property Solvers Auctions is regulated by a range of industry governing bodies.

As legally required, primarily, we’re a member of NAEA Propertymark (our membership number is M0221747).

In order to provide extra security and confidence in our auction process, we’re also members of the following trade bodies and organisations:

  • The Property Ombudsman – a government-approved trade body that protects open market and private property sellers. Our membership number is D12343;
  • Trading Standards (Approved Code) – full adherence to their Consumer Codes Approval Scheme (CCCS);
  • Anti-Money Laundering Regulations – to assure complete protection of auction deposit funds or other client-held monies of any type;
  • Information Commissioner’s Office (ICO) – keeping buyer and seller’s personal contact details secure under the Data Protection Act (1998). Our registration number is ZA193637;
  • Royal Institute of Chartered Surveyors (RICS) Auction Regulations – we follow professional guidance known as Common Auction Conditions (CACs).

Please feel free to email us at [email protected] to request screenshot proof of our membership / registration with these bodies.

We bring auction properties onto our platform via a variety of means, including various direct online/offline marketing channels, existing clients, estate agent partnerships and word of mouth to name a few.

Property Solvers (our parent company) regularly speaks to homeowners in search of a fast sale.  Where our cash buying service doesn’t work or does not fit within our criteria, auction is often a great alternative.

We invest heavily in ensuring the very best advertising exposure and strategy for our auction seller clients.

Upon instruction, we have a UK-wide network of professional photographers and floorplan designers available at short notice.  Our auction administration team will draft the listing ready for publishing – in most cases – when the auction legal pack is ready (or we at least have a good idea of when the solicitors will forward the relevant documentation to us).

Our auction properties are marketed on the leading portals like Rightmove, Zoopla and Prime Location as well as a number of niche real estate sites such as Home.co.uk, The House Shop, Residential People, One Dome and HomeSearch amongst many others.

We can also circulate the property to our growing database of active auction buyers and investors and run the UK’s largest investor’s group on LinkedIn.

We also get regular coverage in a range of mainstream media publications including The Sun, The Express, The Mail and The Independent alongside a range of local and regional newspapers.

Having actively operated across various property sectors for over 2 decades, we are very confident in our ability to value auction properties with complete accuracy.

We typically start by having a close conversation with the seller regarding the location, condition, size and a range of other factors regarding the property (or properties).

Our auction appraisers will look closely at sold HM Land Registry data and to a lesser degree housing / commercial / land stock on the open market that’s recently been marked as Under Offer or Sold STC.

We also have access to the rich data sources found on Rightmove Plus, Zoopla Pro, PropertyLink (Estates Gazette) and Essential Information Grop (EIG), not available in the public domain.  Property Solvers Auctions are subscribers to these services.

Following these steps enables us to provide evidence-backed and unbias figures that inform our seller clients on the very best way to position the property for auctions.  We’re very conscious not to overprice properties for auction so as not to attract buyer interest and bidding.

Establishing the Guide Price

The guide price is an indication to buyers as to what both we (the auctioneer) and the seller expect to achieve at the end of the auction process.

However, it should not be taken as a definitive valuation or what the property will sell for.  It’s very common for the eventual sales price to exceed the auction guide, sometimes by a significant amount.

The Auction Reserve Price

The reserve price is the minimum figure that the seller is willing to accept for the property (either pre-auction or once the bidding process has ended).

Once our online auction hammer falls, the bidder who places the highest bid at or above the reserve will be the purchaser.

Please note that the reserve price is liable to change throughout the promotional process (and theoretically right up to the bidding process, although this rarely happens).

We are not able to disclose the auction reserve price to bidders at any point, although it will not surpass the guide price by more than 10% if it is a single-figure guide price.  If a guide price range is quoted, the reserve will fall within the lower and upper figures.

 

Much will depend on the seller’s ability / willingness to provide access but, generally speaking, our auction house is able to offer viewings 7 days a week – including evenings.

We also run open days where a number of potential bidders can view the property at the same time.  This tends to minimise disruption (with existing tenants for example)

Should you wish to have a second viewing or book in a survey, we are more than happy to make those arrangements (with the owner’s permission).

We usually have a marketing period of 3 weeks, the last 6 days of which interested buyers will be able to bid on the auction property.

It’s during this period that we invite interested bidders to view the property, respond to enquiries (24/7) and ensure the legal pack is fully prepared (downloadable from our own portal).

This means we can also register bidders in good time and deal with the issues that can arise.

In short, we leave no stone unturned and will do our utmost to ensure the auction process runs smoothly.

If you’ve bought or sold properties at a traditional or “in the room” auction previously, you would probably have noticed that the bidding periods tend to last a few minutes to half an hour.

Here, the auctioneer’s aim would be to accept bids from the rostrum – increasing the price as much as feasibly (and persuasively) as possible. The hammer will fall when there are 2 or 3 bidders competing price and one is willing pay the higher amount. There are also times when another buyer steps in and pushes the price even further.

The downside of this way of auctioning properties is that there is a certain limit to the number of bidders that can participate within such a narrow timeframe. Furthermore, although more traditional auctioneers offer streamed and distant-bid auctions, the number of buyers is lower.

With our online auctions, the process works in a very similar way as the “in the room” manner of doing things.  However, we open the bidding window 6 days before closing to allow more people to participate – including international and remote buyers.

The ability to add in proxy bids in good time before the auction means that we have a lot more registered bidders.  What’s more, we can focus on what we do best: getting the optimum results that both buyers and sellers are happy with.

It will usually be the seller’s or current legal owner’s responsibility to instruct a qualified solicitor to prepare the auction legal pack.

The content varies depending on the type of property and tenure but will typically contain the following:

  • The Title Register from HM Land Registry;
  • Special Conditions of Sale;
  • Property Information Form (TA6);
  • Fixture & Contents Form (TA10);
  • Leasehold Information (TA7) and Property Enquiries (LPE1) forms;
  • Tenancy Agreements and Proof of Rental Receivables (if the property being sold is a buy-to-let);
  • Commercial property leases (where required);
  • Planning and building regulation documentation.

It’s also advisable to instruct conveyancing searches – namely: Title Register + Plan, Epitome of Title, Local Authority, Environmental, Flood Risk, Water, Drainage, Boundary, Commons Registration, Land Charges, Mining amongst others.

Most can be produced in a relatively short space of time – bar Local Authority searches (which most solicitors advise their buyer clients to take out professional indemnity insurance to protect against any downside risks).

Note that having a legal pack is not compulsory – however, we usually recommend sellers have such documentation in place to avoid low bidding, a lack of interest or other unnecessary issues.

Many sellers choose to claim back these costs as part of the Special Conditions of Sale (which they are legally entitled to do).

These are specific contractual terms related to the property in question that will not appear in the listing or property brochure.

Where included, we’ll include these terms in the Legal Pack.

Along with the terms and conditions, we would need you to acknowledge that you have read and understood them before allowing you to bid on any lot we advertise.

Our auction platform features a range of property types including:

  • Residential terraced / semi-detached / detached houses;
  • Purpose built / converted / studio flats and maisonettes;
  • Bungalows / cottages;
  • Hotels / serviced accommodation units / chalets / pubs / restaurants / cafés / sporting facilities / care + nursing homes;
  • Commercial / mixed-used buildings;
  • Industrial properties + structures including warehouses, factories, garages and forecourts;
  • Retail including shops / outlets and shopping centres
  • Ground rents;
  • Land (with and without planning consent or Permitted Development Rights);
  • Everything in between!

No, we separate our estate agency sales from those we market via auction.

This is because our auction seller clients are looking for the extra security of sale that rarely exists on the open market.

Check out our monthly updated speed of sale tool which frequently shows how open market sales can take over 6 months from initial marketing to completion.  With 1 in 3 sales falling throuh, this assumes that they do get to this stage.

Yes, we market properties across all areas of the UK.

Note that, due to legal and marketing-related differences, we are currently not able to run our auctions in Northern Ireland.  However, we have a number of investor contacts across the region that we would be happy to refer to.

Our aim as auctioneers is to ensure a smooth process for all involved.

For this to happen, preparation is key and we have created a series of key registration processes, detailed on our auction buyer’s page. These include:

  • Full mobile phone and ID verification;
  • Confirmation of agreement of our conditional (56-day) or unconditional (28-day) auction terms and conditions.  These are aligned with the 4th Edition Common Auction Conditions (reproduced with the consent of the Royal Institute of Chartered Surveyors);
  • Confirmation of agreement to any Special Conditions of Sale (contained in the legal pack);
  • Credit or debit card registration for the security deposit through Stripe. There will be a “hold on funds” or “payment shadow”.  The buyer’s card will be automatically debited for this amount only if the bid is successfully won.  If unsuccessful, this payment will be released back at zero cost;
  • Completion of credit and anti-money laundering checks (at our own expense).  This process does leave a “soft footprint” but will not affect the buyer’s credit rating;
  • Extra checks are often required for any overseas buyers, those who do not have a UK passport or are deemed to be “politically exposed”.

For sellers, auctions are a great way to dispose of property without the stresses and hassles that are common with private treaty (estate agent) sales.

Risks are only likely to appear if you work with an unregulated auction house that does not have a decent reputation. A good firm in the space will indeed have plenty of reviews and a solid presence both online and off.

For buyers, caveat emptor (“buyer beware”) applies.

Remember to always view the property and read through the auction legal pack with care (seeking advice where appropriate).

Crucially, understand that – should you win the bid – there are contractual obligations to follow through on the property purchase. Failure to do so could result in heavy financial penalties.

Our seller fees are 1.5% + VAT (minimum of £1,500 + VAT). These will only be due once we successfully sell the property.

Note that we also charge a set-up fee of £499 + VAT (pre-auction) or £699 + VAT (due on the sale completion).  Generally, however, we only charge this when we envisage notable difficulties or the seller wishes to market the property at a level that we believe may be too high to attract serious buyers.

Buyers pay a non-refundable reservation fee upon winning a lot.  This fee is set a 2% + VAT (minimum of £2,000 + VAT).

Our aim is to create a level playing field rather than weigh too much financial obligation on either side.

Please visit our property auction sales page (which has all our current and previous listings).

Here are some of the main portals where you’ll also find our advertised properties:

  • The House Shop
  • Residential People
  • Net House Prices
  • Mouseprice
  • Property Heads
  • Property Mutual
  • Gumtree’s property pages
  • eBay’s property pages
  • Home.co.uk
  • Mumsnet’s Local Pages
  • House Ladder
  • Propertini
  • Property Pidgeon
  • Placebuzz
  • Renovate Me
  • Property Renovate (London only)
  • Nuroa
  • Trovit Renovations
  • Wreck of the Week
  • CoStar (commercial auction properties only)

After registration, once the auction opens, buyers can place bids in line with the pre-determined bid increment levels that we set beforehand.

The bid increase (+) and decrease (–) buttons are clearly displayed. After setting the bid amount, it’s a case of clicking the “Place Bid”. There will be a confirmation alert as we appreciate that the buttons are sometimes pressed accidentally.

The bids are then displayed after selecting “History” (a pink button).

If buyers are not ready to bid, clicking on “Watch”  enables them to see how the bidding progresses.  We will send alerts by email but also suggest bidders keep an eye on the listing to not miss out.

Proxy auction bidding enables buyers to set a maximum amount that they’re willing to pay.  Similar to eBay, our system will then automatically bid higher on their behalf – meaning they don’t have to constantly revisit the listing.

Note that we will only bid in line with the pre-set increments and no further.  Say, for example, a buyer has set a maximum bid of £95,000 and the increments are set at £1,000 and his bid stands at £92,000. If another buyer bids at £93,000, we will only bid up to £94,000. Only if another were to bid at this level would we increase up to the maximum.

We will notify all buyers (by email) when they are outbid for them to push the maximum price higher should that be the chosen decision.

After we list an auction property and/or during the viewing process, it’s common for prospective buyers to approach us and discuss making an offer.

We have an obligation to pass these offers to our seller clients and it is at their discretion to accept (or not).

In most cases, sellers prefer to proceed with the auction bidding process as – understandably – the aim is to maximise the price they achieve.

However, there certainly are situations where our clients may be willing to proceed.  Examples could include the buyer offering cash and/or above the guide price.

Note that, pre-auction sales are still subject to the same conditions.   This means that buyers will need to register, undergo anti-money laundering checks, provide proof of funds or other necessary credentials.

For our 28-day auctions, the exchange of contracts will happen once the buyer selects “Buy it Now” on our platform (after full registration and approval).

Under 56-day conditions, the buyer must pay the non-refundable deposit, exchange contracts after 28 days and then complete after another 28 days.

If you see that a lot has not sold after the close of the auction and you are interested in making a bid, it’s a simple case of contacting our office (the relevant number will be on the listing) to discuss.

Although we will still not be able to disclose the reserve price, we would generally suggest that any offer is as close as possible to the guide price.

We do not have limits on the amount of times sellers can relist with us and many prefer to try again (often with an adjusted guide/reserve price).

Please note that any sale agreed upon after the close of the bidding – unless otherwise stated – will be subject to our 28 or 56-day (modern method) auction conditions.

Generally, we open up the bidding for 6 days.

Although most of the activity tends to pick up in the last few hours of the auction, running the auction in this way allows for a broader range of bidders (including international buyers) to participate.

We can certainly run shorter auctions, particularly if our seller client needs to sell within specific timeframes.  Here, we can also run the opportunity past our database of property investor / auction buyers.

In short, yes.

Irrespective of whether the auction sale is conditional (56 days) or unconditional (28 days), any bid at or above the reserve price that isn’t beaten will be representative of a commitment to purchase the property.

However, winners of our conditional auctions are not committed to buying the property and have an “exclusivity” period to exchange contracts within 28 days of our online hammer fall and further 28 days to complete the sale.  Should this not occur, there will be a loss of the reservation fee alongside other abortive costs to pay.

Unconditional (traditional) auction winners exchange contracts at the fall of the hammer and must pay a minimum 10% deposit of the purchase price and the reservation fee.  The sale must then complete in the following 28 days.  Failure to comply with these processes could result in the loss of all deposit funds + fees as well as abortive costs.

It’s worth noting that withdrawing a bid before the hammer falls is possible under certain circumstances.

Although our bidding mechanisms have broad similarities with eBay, the practice of sniping is impossible on the Property Solvers Auctions platform.

Our auction algorithms ensure that every bidder has a fair and equal opportunity to place further bids within specific timeframes.

Every auction lot will close as per the publicised end date and time.

If a bid is placed within the last 60 seconds, our system allows for a “bidding extension window” – meaning the auction is prolonged for a further 60 seconds.

If another bid is placed during this bidding extension window, the system will immediately reset the countdown clock to 60 seconds again. The auction will only terminate when an entire 60-second bidding extension window passes and no further bids have been placed.

At the fall of the online hammer (or gavel) falls, the winning bid amount will be clearly displayed on the listing.  The successful bidder will also receive a direct email and a member of our auction team will reach out to undergo the relevant administrative procedures.

Fall of the Online Hammer – Unconditional (28-Day) Property Auctions

As with traditional “in the room” auctions, buyers are effectively exchanging contracts.  We will immediately forward our reservation agreement to be e-signed alongside a formal request of a 10% deposit into our client account.  These funds are then forwarded to the seller’s solicitor (with accompanying proof of transfer from our own bank).

Our auction platform will also automatically debit the reservation fee (or we will take payment using our merchant card payment service).

Buyers will be aware that failure to follow these legally-binding procedures could mean loss of deposit and reservation fees alongside other abortive costs that the conveyancing firm may wish to charge.

Fall of the Auction Hammer – Conditional (56-Day) Property Auctions

The winning bidder has a 28-day period to exchange contracts on the property sale and then a further 56 days to complete the sale. The bidder must also pay the non-refundable reservation fee.

Property Solvers Auctions do not handle any of the purchase funds with these auctions and the deposit (on exchange) will be paid directly to the buyer’s conveyancing solicitor’s client account.

Note that there are occasions where we extend these timeframes, depending on the nature of the sale (and client request). Such extensions will be clearly stated in the marketing collateral and Special Conditions.

 

The team at Property Solvers will produce a Sales Memorandum the moment the auction is concluded.

This will be circulated amongst the conveyancers to proceed with the next stages of the sale.

Our annual research on average conveyancing fees demonstrates that what both buyers and sellers pay often varies according to a number of factors including:

  • The reputation of the firm
  • Where in the country the firm is located
  • The conveyancing firm’s current workload
  • Whether the property is freehold or leasehold
  • The size and location of the property
  • If there are multiple titles involved in the sale
  • Whether the property is owned or being bought by multiple parties
  • Whether the property is owned or being bought by a corporate entity / trust

Due to the time-sensitive nature of auction sales, the auctioneer may also up their fees relative to a private treaty sale transaction.

Buyers may also wish to pay for an auction legal pack review which can be a wise investment to ensure there will be no surprises after purchasing the property.

Auction buyers will have to pay Stamp Duty Land Tax (SDLT) at the point of exchange and completion.  The amount owed will vary according to the purchase price and whether it’s a second property (in which case there will be an additional surcharge).

Buyers should also note that HM Revenue and Customs policy states that a reservation fee for a land or property transaction will be deemed as chargeable consideration and will therefore form part of your net SDLT liability.

Sellers with properties that have been their own homes (referred to as the Principal Private Residency) will not pay any tax upon sale.  However, if this is a second property – used for investment, buy-to-let or holiday let purposes for instance – there will be Capital Gains Tax (CGT) implications.  The amount of tax will vary according to the income tax bracket and there are specific deductions and annual capital gains allowances that can offset the amount due.

If a property has been owned in a corporate entity – more typically a Limited company or Special Purpose Vehicle (SPV) – there may be corporation tax liabilities.

The other tax to be aware of is Inheritance Tax – normally only applicable for probate property sales.

We would strongly recommend speaking with a qualified tax advisor / accountant prior to making any decisions to buy or sell at auction.

Yes, please take the time to complete our auction buyer / property investor profiling form.

This will enable us to contact you with suitable opportunities aligned to your criteria, including pre and post auction opportunities.