We have answered some of our most frequently asked questions about how to buy property at auction. If you have any other questions, please don’t hesitate to get in touch.
What is an remote bidding Auction?
Due to the current restrictions because of the Covid-19 pandemic, our auctions will be livestreamed via our website with remote bidding by proxy, telephone or internet (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 and for our remote bidding form. Properties will still be sold subject to the usual auction conditions with an immediate exchange of contracts and fixed completion date.
What is an online Auction?
An online property auction can start and end on any day, the dates and times will be clearly detailed on our website. Interested parties must open an account and register to bid. Once you have been authorised you can place your bids up to your maximum amount. You can see the other bids and adjust your bid up to the end of the auction if you wish to do so.
How do I create an online auction account?
To buy property at auction you will need to click the log in/create an account button on the online auction property you are interested in. You will need to submit your information and debit card details for payment of the deposit and administration fee, if you are successful (no payment will be taken unless you are the successful bidder). We will automatically undertake an AML (Anti-Money Laundering) check in order to approve you to bid. (The AML check will leave a soft footprint on your credit report but it should not affect your credit rating).
Are the properties available to view before the Auction?
Following the Governments easing of some of the restrictions, we are pleased to be able to resume viewing appointments. 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.
How do I know if there are any structural defects to the property?
We do not undertake any structural surveys and if you have any concerns regarding the structure, we recommend that you instruct your own structural survey. Your surveyor can contact us for access arrangements.
Where can I view the legal pack before the property Auction?
It is essential that you read all the legal documentation for each property you are interested in, to fully understand the terms of your purchase and any costs that may be payable in addition to the purchase price. We also strongly recommend that you ask a solicitor to read them on your behalf. We upload all legal packs to our website as soon as they arrive from the seller’s Solicitors. They are all available to view free of charge (select the property from the properties page, and click ‘legal pack’ under the ‘lot information’). You should also read the Important Information and Common Auction Conditions which are applicable to all auction lots.
Can I make an offer prior to the Auction?
Some vendors will consider offers prior to auction but they should be in excess of the guide price in order for them to be considered. All offers will need to be made in writing to email@example.com once you have inspected the property (if applicable) and have read the legal pack. Please note that if an offer is accepted, you will need to exchange contracts and pay your deposit and administration fee in cleared fund before the Auction sale/end of the online property auction.
Can I get a mortgage on the property?
It depends on the individual property and factors such as the condition, structural defects and mining report can all have an impact. We advise that you get your finances agreed and seek any legal advice before bidding at auction. You can use your own finance/mortgage provider or 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. 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 and ask your solicitor to check the legal pack/searches.
Will there be any changes to the catalogue entry?
There may be amendments to the catalogue particulars and we recommend that you keep yourselves updated regularly. Please refer to the Addendum on our website which is updated as and when we are aware of any changes. 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 travelling to the auction and before bidding on any property.
What is a guide price?
The guide price is an indication of the vendor’s reserve price, being the minimum price the property can sell for on the day/at the end of the online auction. It doesn’t necessarily mean the property will be sold for this price as it depends on the level of interest which can increase the final selling price.
What is the reserve price?
The reserve price is confidential between the seller and the Auctioneer and is the minimum price that the seller is willing to accept.
Will the reserve price be the same as the guide price?
Not always. The guide price is an indication of where the reserve price might be set. If the guide price is a bracket figure, then the reserve price cannot be higher than the top end of the guide price, if the guide price is a fixed figure, then the reserve cannot be more than 10% above the guide price. In some cases the reserve price can be lower than the guide price.
Can someone else bid on my behalf if I cannot be available during the Auction?
Yes, they will need to complete the remote bidding form and email it to us with 2 forms of their original identification, together with 2 forms of your original identification and a signed letter of authority from yourself. You must inform them that if you default on the purchase they will be liable to complete the purchase themselves. For more information please click here.
Can I bid on a property which is to be owned in joint/several names?
Yes, but you must include their details as a purchaser on the remote bidding form, provide two forms of original identification for yourself and for each person who wishes to purchase the property and a letter of authorisation, signed by each person, authorising you to bid on their behalf. If you don’t provide all the necessary documentation, as the bidder you take full responsibility, the property will go in your sole name and you will be legally obliged to complete the purchase.
Can I bid on behalf of a company?
You can bid on behalf of a company if you are one of the directors and have more than 50% share capital. If you own less than 50% share capital or you’re acting as an agent/employee on behalf of the company, you must provide a letter of authorisation, signed by each share holder, authorising you to bid. You must also provide original identification for yourself and for each shareholders with more than 25% share capital.
Can I buy a property if I’m a non UK citizen/resident?
Yes, but payment of your funds should come from a UK bank account (you will need to provide a recent bank statement as proof) and appoint a UK Solicitor who can verify your situation. You must also provide 2 forms of identification certified by a Governing body or financial institution (please provide a clear copy of both the front and back of your passport). If you don’t have a UK bank account please contact our team to discuss your individual circumstances.
What if I’m not available at the end of an online auction?
You can enter your maximum bid in advance of the end of the auction, the bidding will still increase in increments (usually £1,000) up to your maximum amount.
If I am successful in my bid, what deposit must I pay?
A 10% deposit of the purchase price or £5,000 whichever is the greater must be paid in cleared funds.
How can I pay the deposit?
Majority of the lots must be paid by cleared funds i.e. debit card payment or a Banker’s Draft made payable to Bond Wolfe Auctions. Deposits for ALL lots offered on behalf of Birmingham City Council must be paid by Banker’s Draft. Please note we do not accept cash, personal or business cheques. If you purchase a property in our online auction, a payment of £6,140 will automatically be taken from the card you registered at the time of creating your account. We will contact you after the auction to take payment of any shortfall.
How do I know what amount to make my Bank Draft for?
You should make your banker’s draft for 10% of your maximum bid plus the administration fee of £1,140 (£950.00 plus Vat). If you purchase the property for less than your maximum, then it means you have paid more than 10% deposit and you pay less on completion.
What is the administration fee?
A buyer’s administration fee in the sum of £1,140 (£950.00 plus Vat) is payable on all lots immediately in the auction room/at the end of an online auction. However, the administration fee can vary for Local Authority lots, please refer to the Important Information in the catalogue or speak to a member of staff for clarification. Any further costs in addition to the purchase price will be detailed in the Special Conditions within the legal pack.
Are there any other costs to be paid in addition to the sale price?
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. We therefore recommend that you instruct your solicitor to inspect the legal pack prior to you placing a bid in order that you are aware of all costs relating to your purchase.
Why is it necessary to take my photograph if I purchase a lot?
This is as an extra safeguard to our vendor(s), so we know exactly who has bid and is therefore legally committed to purchased the property. This is an important part of our procedure and if you are not prepared to have your photo taken then please do not bid.
Why do you have to do an Anti-Money Laundering (AML) check?
It is a legal requirement that we undertake an AML check for all buyers. The AML check will leave a soft footprint on your credit report but it should not affect your credit rating.
Do I need to arrange insurance for the property?
Upon exchange of contracts it is your responsibility to insure the property. Please speak to your insurance company to make the arrangements who will be able to advise you on the appropriate cover you require. Alternatively, speak to a member of our team, who will be able to put you in touch with an appropriate adviser.
If I am the successful buyer, how long do I have to complete the sale and pay the balance of the monies?
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.
What if a property does not sell by Auction?
If a lot does not sell, then we may continue to market the property for 2 weeks post Auction (depending on the vendor’s circumstances) and you may make an offer, however all offers will be under the usual Auction conditions.
If I do not complete the sale will I get my deposit back?
If you default from the sale, you will lose your deposit and administration fee and may be sued by the seller for the balance of the monies owed and for any loss they may have incurred. Please speak to our auction team for further advice.
What do I need to do to get ready for completion?
Please instruct your Solicitor as soon as possible after the auction so they can ensure everything is ready for completion. 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.
Where do I collect the keys from on the day of completion?
We will arrange to release the keys once we’ve had confirmation from the vendor’s Solicitor that the property has completed. All keys must be collected from our Birmingham office. Please telephone us in advance of travelling to our office, to ensure we have had authorisation to release them. If we don’t hold the keys we will advise you of the arrangements for gaining access. You must provide photographic identification to prove you are the purchaser before the keys can be released. If you wish for someone else to collect the keys on your behalf you must inform us by email firstname.lastname@example.org in advance and they will need to provide identification for you and themselves.
Please note our offices are currently closed to the general public due to Covid-19. We will make arrangements to release keys upon completion but please do not turn up at our offices without making prior arrangements.
Can you keep my details for future Auctions?
Yes, please click here to register for our email updates to be the first to hear about our auction dates, properties and results. If you would like to receive our next catalogue by post, please click here and complete your details. If you need any more information about how to buy a property at auction, contact our team.