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 in-room Auction?
In-room auctions are commonly referred to as “traditional auctions”, our in-room auctions are held at Aston Villa Football Ground. We offer a number of auction properties on the same day with interested parties bidding for the properties. The highest bidder, above the reserve price, is the successful purchaser and enters a legally binding agreement to complete their purchase. The properties are marketed for 3 weeks in advance of the auction date to give everyone time to view, read the legal pack and carryout any necessary checks. If you are unable to attend the auction in person you can bid remotely or ask someone you trust to bid on your behalf, please click here for further information.
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?
Yes, we include as many properties as possible on our viewing schedule with the times and dates available within our catalogue, on our website and whenever possible on Rightmove. If a property isn’t on our viewing schedule, please contact us to make an appointment. Not all properties are available to view, particularly investment properties or properties in serious/dangerous states of disrepair, and you purchase these 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 a structural survey. Your surveyor can contact us for access arrangements.
Where can I view the legal pack before the property Auction?
We upload all legal packs to our website as soon as they arrive from the seller’s Solicitors. They are available, free of charge, to downloaded and view. If the property is being offered in one of our in-room auctions, the legal pack will be available to read in the auction room on the day of the sale. Alternatively, they are also available to view in our offices. Please call us on 0121 312 1212 to make sure it’s available before you arrive. You should also read the Important Information and Common Auction Conditions which are applicable to all auction lots, these are available in the auction catalogue or on our website.
Can I make an offer prior to the Auction?
Some vendors will consider offers prior to auction, please call us on 0121 312 1212 to check for the property you are interested in. All offers will need to be made in writing to email@example.com once you have inspected the property (if applicable) and have viewed 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 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 to keep yourselves updated regularly, please refer to the Addendum on our website which is updated as and when we are aware of any amendments. For an online property auction lot, we will update the information directly on our website.
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.
I am not able to attend the Auction, how can I bid?
To buy property at auction, you can bid either by proxy or remotely by telephone or internet. Please click here for further information on how to buy a property at auction and to download our remote bidding form. This form must be with us 48 hours prior to the Auction sale for remote bids or 24 hours for proxy bids.
Can someone else bid on my behalf if I cannot attend the Auction?
Yes, they will need to bring two forms of their original identification, together with your identification and an authority letter from yourself. You must inform them that if you default on the purchase they will be liable to complete the purchase. For more information please click here.
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. If you purchase a property in our online auction, a payment of £5,000 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 10% of your maximum bid plus the administration fee and 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 else in addition to my deposit do I need to bring to the auction?
You will need to bring 2 forms of original identification (for each purchaser), 1 proof of current address such as your driving licence or utility bill (less than 3 months old) and 1 proof of identify such as your passport. Please click here for full details of acceptable ID. If you are bidding on behalf of a company or wish to ask someone to bid on your behalf please click here for further information on how to buy a property at auction.
Are there any other costs to be paid in addition to the sale price?
An administration fee is payable on all lots in the sum of £1,074 inclusive of VAT (see Important Information in the catalogue). Any further costs in addition to the purchase price will be highlighted in the Special Conditions within the legal pack. 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 any all costs relating to the sale.
Why do you have to do an Anti-Money Laundering (AML) check?
To buy property at auction, It is a legal requirement that we must 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.
If I am the successful buyer, how long do I have to complete the sale and pay the balance of the monies?
Usually the completion date is 28 days after the sale/exchange of Contracts, however you should inspect the legal pack to confirm, as the completion date can vary on some lots.
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 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.
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 catalogues by post, please click here to sign up to our 12-month mailing list. If you need any more information about how to buy a property at auction, contact our team.