A Guide for Buyers & Sellers
The Tyneside Property auctions are held at Newcastle 'Falcons'
Rugby Football Club, Rugby Stadium, Kingston Park, Brunton Road, Kenton Bank
Foot, Newcastle Upon Tyne traditionally on the last Tuesday of each month,
(please confirm dates with Pattinson Auctions).
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 £3,000.
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 purchaers 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.
What should I do if I want to sell a property at auction?
Contact your local Pattinson Auction Department/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. This need not be set at an
early stage, we only need to know the reserve in writing 3 days prior to the
sale. 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 through all of our branches 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 the branch concerned with marketing
the property who will help with finance, if required. There are now various
options available to you.
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
£3,000 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 £3,000 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 bids higher 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
unsuccessfull 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, ( Pattinson Auctions can not be held resposible if contact is unavailable for
example due to poor reception on a mobile, your phone being enchanged 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 of the auction of £300
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 auctions or any of our other services please contact your
nearest member agent office or contact Richard Francis (auction co-ordinator
on 07976 412582 or 0845 1461582)
Good luck with your property dealings.
