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A
Guide for Buyers & Sellers
South Wales Property
Auctions are held in Cardiff at one of the most established Hotels in
Cardiff further details are held in our published catalogues, and held
on a regular basis
What
sort of properties are sold by auction?
The answer to this is all types. Some are from vendors seeking a quick
sale, some are properties that are difficult to value because of their
type or condition, some are investment properties, commercial
properties, building sites and land, deceased estates or repossessions.
There are two types of
auctions, Conditional and Non-Conditional.
What are the differences?
Conditional
Auction
Properties offered for sale in this section are subject to a few
conditions to allow private buyers the opportunity to buy and sell at
auction. If a purchaser is successful in that they make a bid for the
reserve price or more, they are required to pay a non refundable
reservation fee of £5,000. Following this they have a period of up to
28 days to exchange contracts. This allows time for a survey to be
carried out and finance to be arranged. If contracts are not exchanged,
with the delay being on the purchasers side, the purchaser will lose
their deposit.
Non-conditional
Auction
In this section, all documentation e.g. Searches, contracts etc, (an
auction pack) will be available at the auction and when a suitable bid
is made contracts are exchanged immediately with a 10% deposit paid (or
sometimes a fixed amount of deposit). Completion must take place within
28 days. Purchasers must arrange for a survey to be carried out prior to
auction if they require one. Once contracts are exchanged it is a
legally binding sale and the purchaser can be sued for breach of
contract if they do not complete on the sale within the time stipulated.
What
should I do if I want to sell a property at auction?
Contact Southwales Property Auctions Office and an appointment will be
made for the valuer to come and visit the property and meet you to
discuss the full aspects of the auction. The valuer will discuss the
costs of the sale and determine a satisfactory guide price to be used
when advertising the property. It will also be necessary to fix a
reserve price, i.e. the lowest price that will be accepted. Once you
have agreed the price etc, with the valuer, the property will be offered
for sale. It will be regularly advertised in the press and included in
the auction catalogue which is available to potential purchasers and
mailed out to buyers from many other areas. Potential buyers will wish
to view the property as in any house sale. If you are unable to attend
viewings we can arrange accompanied viewings if you give us keys. It may
be that purchasers wish to make an offer prior to auctions. We will
assist and advise if this is the case. Otherwise we will proceed to
auction. You can attend if you wish but if it is not convenient you do
not have to be there. Whatever happens, we will inform you immediately
of the results.
What
should I do if I want to buy a property at auction?
First step is to view the property, if you are satisfied that you wish
to purchase it, you should speak to your Bank / Financiers who will help
with finance, if required.
Firstly
You can make an offer for the property prior to auction. The vendor may
wish to accept this and withdraw the property from the auction. If this
is the case you will normally have to comply with the auction conditions
and pay a set reservation fee or 10% deposit, whichever is applicable.
Secondly
Attend the auction and bid in the normal manner. You will have to
register to bid and you will be given a bidding number. When the lot
comes up for sale and if your bid is for the reserve price or more the
property will be sold to you. You will pay the set reservation fee under
Section 1 terms and conditions or 10% of the agreed sale price under
Section 2 terms and conditions, we will instruct solicitors. If you
cannot attend the auction you may give us a proxy bid, sealed bid or you
can bid by telephone.
Proxy bid
This is a request for us to bid on your behalf up to a certain limit. If
this limit is above the reserve, the property will be sold to you. The
purchase price will be the reserve or more but will not be below the
limit set. With your proxy bidding form you we must be in receipt of
cleared funds to cover your reservation and administration fee. If you
are unsuccessful this will be returned to you.
Sealed
bid
This is a written bid for a fixed amount for money. If it is above the
reserve price and there are no other higher bids you will be sold the
property for the amount of your sealed bid. We must be in receipt of
cleared funds to cover your reservation and administration fee with the
bid. If unsuccessful the deposit will be returned to you.
Telephone
bid
This is at is suggests, a bid by telephone. A member of staff will ring
yourselves in order for you to bid live on the telephone, ( South Wales
Property Auctions can not be held responsible if contact is unavailable
for example due to poor reception on a mobile, your phone being unchanged
etc. We must be in receipt of cleared funds to cover your reservation
and administration fee
Their is an administration fee payable
by all applicants who successful purchase, or agree to purchase a
property on the night of the auction of £250 inclusive of VAT
Summary
The auction system is one of the methods we offer and we have tried to
make it as straight forward as possible. Should you require any further
information regarding Southwales Property auctions or any of our other
services please contact us direct on 07788 937279
Your
South Wales Property
Auctions Team
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