Our buying at auction guide
Buying at auction can be a fun and exciting way to buy a property. Our buying at auction guide below will help you understand the process further and our auction team are available to advise you further or answer any questions.
Our website is a fantastic place to start your property search. You will be able to click on the properties page to see all available properties or perform a search based on your criteria. Alternatively, you can click here to sign up for our free auction updates, to be the first to hear about our latest catalogues, results and any updates to the auction catalogue. You can also search our properties on Rightmove or Zoopla, and may see our properties featured in the local press or might come across one of our auction for sale boards.
The guide price is an indication of the vendor’s reserve price, being the minimum price the property can sell for on the day or at the end of the online auction. The reserve price will never be higher than the top end of a bracket guide price or more than 10% higher than a single figure guide price. It does not necessarily mean that the property will be sold for this price, as it depends on the level of interest, which can increase the final selling price.
Arrange a viewing
Following the Governments easing of some of the restrictions, we are pleased to be able to resume viewing appointments. This is important if you are considering buying property at auction as it will enable you to undertake your usual due diligence before bidding and exchanging contracts. However, your well-being and that of our staff and clients is of the utmost importance and it is therefore important that viewings are conducted in the safest possible manner.
Please ensure that you have viewed the 360 degree video and/or photographs of the property before arranging a viewing appointment. If you then decide you would like to view the property in person, please call our office on 0121 312 1212 and you will be allocated a 10 minute appointment slot. Please click here for our 10 step guide for viewing a property during the pandemic.
Not all properties are available to view, particularly investment properties or properties in serious/dangerous states of disrepair, video tours will also not be available for these lots which you purchase at your own risk.
Inspect the legal documents
As it is an immediate legal exchange of contracts at the end of the auction, it is essential that you read all the legal documentation, to fully understand the terms of your purchase and any costs that may be payable in addition to the purchase price. By bidding on any auction lot, you are deemed to have read all the common auction conditions, important information, special conditions of sale and the full legal pack . These are all available to view free of charge on our website and we strongly recommend that you ask a solicitor to read them on your behalf in advance of the auction.
When buying at auction it can be quite common to pay costs in addition to the purchase price, and these are added to the contact/special conditions of sale by the vendor’s Solicitor. They can cover anything from search fees, legal fees, our fees, outstanding service charge or rent arrears, VAT and any costs associated with the property. Please click here for further information. It is important that you take these into account when decided how much you are prepared to pay the property.
Arrange your finances
If you are arranging finance on the property, we strongly advise that you get this agreed in advance. You are welcome to use any finance or mortgage provider you choose as long as they can get your finances in place in time for completion. If you don’t have someone in mind or you need to arrange your finances in a hurry, we are happy to recommend Together Money.
Get a survey
Whether you are having a mortgage or not, it is always recommended that you have a survey in advance of the auction so that you are aware of any defects that may exist. Please ask your surveyor to contact us to make the arrangements.
Some vendors will consider pre-auction offers, and all offers must be made in writing by emailing email@example.com. However, you must view the property and read the legal pack before making an offer, and any offers must be in excess of the guide price in order to be considered. If your offer is accepted, it will be subject to the usual auction terms and conditions – you will need to pay your 10% deposit, administration fee and sign the contract in advance of the auction date.
Check for updates
We prepare an addendum in advance of the auction, detailing any changes since the catalogue has been produced. It also includes details of any properties that have been sold prior or withdrawn and won’t be offered. The latest version is always available on the properties page of our website or please refer to the individual property details for any updates (please note that any updates for online auctions won’t feature on the addendum and will be made direct to the property details). We strongly advise that you check in advance of bidding on any property.
Preparing to bid at our remote bidding auction
Once you have inspected the property, arranged your finances and completed all of your pre-auction checks, you are ready to bid.
The auction will be livestreamed via our website with remote bidding by proxy, telephone or internet only (you will not be able to attend the auction in person). You will need to pre-register for remote bidding, provide your identification and debit card details 24 hours prior to the auction, please click here for further details.
If you are bidding in our online auction, you must create an account in advance. We will need to do an AML check and approve you to bid. Please allow enough time to meet these requirements so that you are ready to bid and don’t miss out on the property you’re after.
You must provide 2 forms of identification for the bidder and each purchaser in order to register to bid – 1 form of photographic identification such as your driving licence or passport and 1 form of identification to confirm your address, this can be your driving licence (if you haven’t used it as your photo ID), a Bank Statement or utility bill (not a mobile phone bill) no less than 3 months old.
Deposit and buyer’s fee
If you are the successful bidder, you will need to pay your 10% deposit (subject to a minimum of £5,000) and administration fee of £1,140 (£950.00 plus Vat) immediately in the auction room. Please note the administration fee can vary for Local Authority lots, please refer to the catalogue or speak to a member of staff for clarification.
These can be paid by banker’s draft (made payable to Bond Wolfe Auctions) or debit card with the exception of lots being sold on behalf of Birmingham City Council, which must be paid by banker’s draft. Please note we do not accept personal or business cheques or cash.
If buying in the auction room, a member of staff will direct you to the finance desk. If buying in an online auction, £6,140 will be automatically taken from the card you have registered, and a member of staff will contact you for the outstanding balance if applicable.
Sign the contract/special conditions of sale
If you are the successful purchaser, as per our remote bidding terms & conditions, we will sign the contract on your behalf and forward a copy to your Solicitor.
Upon exchange of contracts, it is your responsibility to insure the property. Please speak to your insurance company to make the arrangements or speak to a member of our team, who will be able to put you in touch with an appropriate adviser.
Instruct your Solicitor
Please instruct your solicitor as soon as possible after the auction so they can ensure everything is ready for completion.
Completion is usually 28 days from exchange of contracts but can vary depending on the seller’s circumstances. Please double check the contract/special conditions of sale for each property you are interested in purchasing. You will also need to put your solicitor in funds and they will arrange to transfer the money to the vendor’s solicitor on the day of completion.
Please note that if you fail to complete within the completion period you will be in breach of contract, you will lose your deposit and administration fee and be at risk of being sued by the vendor.
Collect the keys
We usually hold keys for most vacant properties and we will arrange to release them to you as soon as we’ve had confirmation from the vendor’s solicitor that they have received the funds and completed the sale.
However, due to the pandemic our offices are currently closed to the general public and you must telephone our office in advance on 0121 312 1212 to make arrangements for the safe collection of your keys.
For further advice please also read our Buyer FAQs