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What is a Sealed Bid Auction?
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In this type of auction, all bidders submit sealed bids, so that no bidder knows the bid of any other participant. The highest bidder wins the auction and pays the price they submitted.
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What is a Dutch Auction?
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A traditional Dutch auction is one where the auctioneer begins with a high asking price, and then begins to lower it until someone is willing to accept it. That person wins the lot, and pays the last announced price. "Dutch auction" is also used as a term in online auctions, where multiple identical goods are sold at the same time to a number of high bidders.
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Is the final hammer price the final price I will pay?
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If you win a lot, you will need to pay the purchase price (the final hammer price plus buyer's premium) and any VAT that may be due.
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What is an absentee bid?
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If you cannot attend the sale, you may give the auction house a written instruction to bid for you up to your specified maximum amount. Absentee bids are also called written bids, commission bids, or order bids.
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If I put in an absentee bid, and there are no other bids on the day, how much will I pay?
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If you put an absentee bid in for an item with no reserve, and you are the only bidder, then you will win the lot at approximately half of the low pre-sale estimate, or the amount of your absentee bid, whichever is the lower.
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What happens if someone else put in an absentee bid the same as mine?
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If two or more parties leave identical bids, the first bid received by the auction house will take precedence.
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What is a reserve price?
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A reserve price is the lowest price the Seller will accept. The existence of a reserve price will be disclosed but the amount of the reserve will not.
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What is a guide price?
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Guide Prices are simply an idea of what price the property is expected to sell for on the day. These prices may alter in the run up to an auction, so you should contact the auctioneer to check for any changes.
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Can I inspect the property before the auction?
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It is always advisable to view the property before the auction. Contact the auction house to arrange a viewing.
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Can I wait to see if my bid wins the auction before I arrange funding?
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No, you MUST have all the necessary funding in place for the day of the sale, and if you win the auction, you will be expected to pay a 10% deposit immediately.
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Do I need a survey?
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A survey is only mandatory if you require a mortgage. However, it is recommended that you ask a chartered surveyor to undertake a survey on your behalf before buying any property.
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Can properties be sold or withdrawn prior to auction?
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Properties do sometimes sell prior to auction or occasionally are withdrawn. You should check with the auctioneer on the day of the sale to confirm that the lot in which you are interested is still being offered.
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Who is responsible for insurance of the property?
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You will be responsible for insuring the property from exchange of contracts, and so you should make appropriate arrangements in advance.
