06629 seq002196e auctions brochure april 18.qxp layout 1 ... 06629 seq002196e a… · 06629...

step by step guide to buying and sellingat auction

helpfultips andadvice

06629 SEQ002196E auctions brochure April 18.qxp_Layout 1 16/04/2018 12:48

Here at Sequence we are one of the largestresidential property auctioneers in the UK.Whether you’re a novice or a seasonedprofessional we can provide advice andinformation on all aspects of buying andselling at auction.

There are a number of steps to take andwe’ve included them in this guide. If you

have any questions you can call any of ourauction centres listed at the back of thisbooklet and they will be happy to help.

Buying and selling at auction is basically astep by step process and if you do visit anauction you’ll discover, like many thousandsof people, just how easy it really is. Here arethe main areas you will need to think about.

It’s often thought that buying or selling property byauction is complicated and risky and should only beattempted by experienced property investors, developersor builders. However, auctions are now a popular way formany people to move home, find a DIY project or a buy-to-let investment.

getting ready to sell 3-4The first stage is to find out what your home is worth. You’ll also need to appoint a solicitor.

preparing to buy 5-6Finding the property that’s right for you and then preparing for the auction.

the auction day 7-8What to do during the most exciting part of buying or selling at auction.

you’ve done it! 9When the hammer falls, the contract is binding and the property is sold.

jargon buster 10A handy list of terms and phrases.


Selling at auction also widens the potentialmarket, not only will there be buyers whowant to make it their home, there’ll also beinvestors, developers and property dealersinterested in buying.

In many cases an auction could prove to bethe best method for selling your propertyand not just a last resort.

finding out what your propertyis worthOnce you’ve decided to sell, you will need afull auction appraisal to find out what priceyou can expect to achieve, the likelytimescales and costs involved.

You should choose your auctioneer carefullyas this can make all the difference as towhether you achieve the best price. It maybe tempting to go with the auctioneer whoquotes you the highest guide price, but ifyour property doesn’t sell then you could beleft with the auctioneer’s and solicitor’s costsand a home that you still need to sell. It canalso be tempting to use the auctioneer thatquotes the lowest fee, but are they reallygoing to market your property to its fullpotential and generate as much interest aspossible before the auction? Just one extrabid on the day could more than cover aslightly higher fee.

entering a property for auctionYou will need to register your property atleast six weeks before the auction to ensurethat it is included in the catalogue and alsoallowing the auctioneer plenty of time tomarket it. A good auctioneer will marketyour home online, in the local or nationalpress and distribute the catalogue topotential buyers and investors - all the time,keeping you fully updated on the response.

getting ready to sellThere are many advantages to selling your home at anauction. It’s quick and if successful the whole process cantake as little as six weeks, there’s no chain and when thehammer falls, your property is sold.

step by step guide to buying and selling at auction 3


You’ll also need to appoint a solicitor whowill help in preparing the contract of saleand supporting legal paperwork. Again, agood auctioneer will liaise with yoursolicitor fully, ensuring everything is in placefor the auction sale.

marketing your homeOnce the marketing of your propertybegins, the auctioneer may receive offerson it before the auction. If your property issold before the auction, then it will bewithdrawn upon exchange of contracts.

the reserve price A lot of people are put off from selling atauction because they’re worried they willlose money if bids are very low. Don’tworry, you should talk to your auctioneerabout setting a reserve price which is theminimum price you want your home to besold for. This is normally set in principlewhen you instruct the auctioneer. Itsafeguards you from setting a reserve thatis too low or too high. It’s confidential andwill not be disclosed to anyone.

how we can help?We can provide you with afree, no obligation auction

appraisal of your property. It willadvise you on a recommended reserveand give you an idea of the price youcould achieve at auction. We canalso market your property locallyor nationally using our network

of estate agents.

step by step guide to buying and selling at auction4


They may also want something a bitunusual, the type of property not usuallysold traditionally through an estate agent.Buy-to-let investors also buy properties atauctions, as they have a full range ofinvestment opportunities to choose fromand they can purchase quickly. It doesn’tmatter what your reason for buying atauction is, the key to success is preparation.

finding the right propertyBefore you go along to an auction to buy aproperty there’s a lot of groundwork thatneeds to be done first. A good place tostart is by making a list of your ‘must-haves’. It could be a particular location,detached or semi-detached, number ofbedrooms, price range, space for parking,etc. Once you have an idea of what type ofproperty you want to buy, then you'reready to start your search.

where to lookThere are lots of places you can startlooking, the Internet, propertysupplements, regional and local papers andby contacting auction centres. The auctioncentre can add you to their mailing list andyou will be sent a copy of the auctioncatalogue which lists all of the propertiesfor sale. You’ll be one of the first to see itand it will give you plenty of time tocomplete your enquiries before the auction.

preparing to buyPeople buy at auction for lots of reasons, they might wantto move quickly or they could be looking for a repossessedproperty, a plot of land to build on or quite simply theywant a quick purchase without the risk of gazumping.



before the auction> as with any property you want to buy,arrange a viewing of the property

> make sure that you’ve arranged a survey- you’ll definitely need this if you arefinancing the purchase with a mortgage. If you are paying in cash you’ll want tomake sure the property is structurallysound

> if you are financing the purchase with amortgage, then you should have aformal offer in place before attendingthe auction

> you’ll need a deposit which is typically10% of the purchase price - this ispayable at the auction once you’vebought the property some deposits mayvary, so be sure to check the specialconditions of sale prior to bidding

> have a look at a copy of the legaldocuments from your auctioneer - theseare usually available online

> consult a solicitor about the purchase toavoid any legal pitfalls

> make sure you have a copy of theauction catalogue, as this forms part ofthe legal contract between you and theseller

Some of these preparations will incur costs,but it’s much better to make sureeverything has been checked in advance foryour own peace of mind. The auctioncentre will be able to advise you aboutwhat these costs are likely to be.

offers prior to auctionYou can submit an offer on a propertybefore the auction which, if suitable, wouldbe sent on to the seller. If this is acceptedthen your purchase will go ahead andwhen contracts are exchanged the propertywill be withdrawn from the auction.

how we can help?You can contact any of ourregional auction centres for a

catalogue showing the latest propertiesfor sale in that region, or alternativelycontact our national auction centre,Barnard Marcus with properties forsale throughout the UK. Contactdetails for your nearest auctioncentre can be found at the

back of this guide.



what do I need to bring?Buyers will need two forms of identification,(for example, a current passport and autility bill), a copy of the auction catalogue,solicitor’s details and a deposit - if you aresuccessful then you will need to pay thiswhen contracts are exchanged, whichhappens on the fall of the hammer.

It’s also a good idea to arrange for yourbuildings insurance policy to commence assoon as the hammer falls. For some leaseholdproperties this might not be necessary butyour solicitor will advise you on this.

your depositThis is payable upon exchange of contracts.Preferably by debit card, cheques will incuran extra fee. At some auctions there mayalso be a contract documentation feepayable.

biddingBefore bidding begins, the auctioneer willcheck that everybody has a copy of the‘Addendum or Announcement’ sheet andwill read out any last minute alterations tothe catalogue details.

When the property you are interested incomes up, make sure you know themaximum price you can afford to pay - it’seasy to get carried away!

Once bidding begins, potential buyers willbe asked to make their bids clearly eitherby raising their hand or a copy of thebidder’s card. And don’t worry… you can’taccidentally buy a property just byscratching your head!

the auction dayThis is by far the most exciting part of buying or selling aproperty at auction - but make sure you’re prepared on theday. If you’re buying, contact the auction centre beforehandto make sure that the property you want is still available.



how we can help?We can give you help and advice on what you should do on the

auction day. A member of our staff is always at hand to help you

when you arrive.

tipOn arrival, check to see if there havebeen any late changes to the lots,just ask for a copy of the ‘Addendumand Announcement’ sheet.

Once a final bid has been put forward, theauctioneer will signal that it is about to beaccepted by using the phrase ‘going,going, gone’ and bang the hammer toclose the sale. If a property fails to reachthe reserve price it will be withdrawn fromthe auction and the auctioneer will inviteanyone still interested to talk afterwards.Sales can still be made afterwards if a priceis agreed with the seller.

what if I can’t attend?If you can’t attend on the day, then you canarrange for someone to submit bids on yourbehalf. They will need your written consentand need to bring along their own identityand address verification together with certifiedcopies of your identity and address verification(for example, a current passport and a utilitybill). You should also agree strict limits beforeany bids are submitted. If you would likesomeone from the auctions centre to do this,then contact them at least two days beforethe auction, to arrange completing andsubmitting the proxy forms. If you are notattending, we will require your ID and addressverification. These must be certified by aprofessional person (such as a solicitor) if youare unable to meet a member of our staff inperson before the auction. The certificationmust confirm the ID document is a truelikeness of you and also a true copy of theoriginal document.

You can submit telephone bids to amember of the auction team who’ll be inthe auction room and bid for you viatelephone link. The documents can befound in the auction catalogue. Thesedocuments must be submitted andacknowledged along with certified copiesof your I.D at least 48 hours prior toauction day.

Remember that if you can attend the saleyourself, then this is by far the best way tobid and you won’t miss out on the excitingatmosphere in the room.



The completion of the sale usually takesabout 28 days, however for someproperties this can happen sooner - this willbe stated in either the general or specialconditions of sale in the auction catalogueor as a special condition of sale in the legaldocuments. The balance of the sale pricewill be payable upon completion and asolicitor will normally deal with this part of the sale.

you’ve done it!Once the hammer falls, then contracts are legally exchanged.The contract will need to be signed and the deposit handedover immediately. The auctioneer is legally entitled to signthe contracts on behalf of the buyer and seller if necessary.



jargon busterWhen you’re attending an auction for the first time, it canfeel like you need to learn a whole new language. But, bybrushing up on a few key terms, you’ll fully understandwhat is happening both before and on the day.


> ‘bid’ - the amount that someone (thebidder) offers to pay for a property atauction. The auctioneer often controlsthe amount by which bids increasealthough bidders can suggest a differentamount if they wish.

> ‘completion’ - when the full amounthas been paid and the transfer signed.

> ‘entering a property’ - the term usedfor putting a property up for sale atauction.

> ‘exchange of contracts’ - the fall of theauctioneer’s hammer or gavel meansthat contracts have been exchanged.

> ‘gavel’ - the hammer the auctioneeruses to close the bidding on a lot.

> ‘general/special condition of sale’ -these are legal papers that are attachedto and form part of the condition of sale.There are different special conditions ofsale for each and every lot.

> ‘guide price’ - provides an indication ofthe level at which the reserve may be set,but the guide price should not be reliedupon as a valuation or assessment ofvalue. The eventual sale price can beabove or below the guide price.

> ‘joint auctioneer’ - generally a localestate agent who will show peoplearound the property and provide localknowledge.

> ‘legal pack’ - is the set of legal papersthat a buyer should review in order tomake an informed decision, whether topurchase or not. The vendor’s solicitorprepares the legal pack which generallycontains copies of the Title Deeds,Special Conditions of Sale, Land RegistrySearch, Leases (if applicable) and otherpertinent documents. These are normallyavailable to download prior to theauction and a hard copy is usuallyavailable to inspect in the auction room.

> ‘lot’ - when a property is entered forauction it is referred to as a lot and givena lot number.

> ‘reserve price’ - this is a confidentialfigure set by the seller. The seller will notsell below this price however bidding willoften start below the reserve price.

> ‘withdrawn’ - this is when a property issold before the auction, it has been taken off the market or it fails to reach its reserve price.


Bagshaws Residentialcovering Derbyshire, Staffordshire andthe whole of the East and West Midlands

38 CornmarketDerbyDerbyshire DE1 2DG

T 01332 542296 or 01332 542298 E [email protected]

Barnard Marcuscovering the whole of the UK

Sovereign House361 King StreetHammersmithLondon W6 9NA

T 020 8741 8088 or 020 8741 9990E [email protected]

Fox & Sonscovering Hampshire, Dorset, Wiltshire,Oxfordshire, Somerset, Devon, Cornwall,East & West Sussex and the Isle of Wight

32/34 London RoadSouthamptonHampshire SO15 2AG

T 02380 338066E [email protected]

William H Browncovering East Anglia and the Midlands

5 Bank Plain Norwich Norfolk NR2 4SF

T 01603 598 975 or 01603 598 977E [email protected]

William H Browncovering Yorkshire, Humberside,Lancashire, Tyne and Wear, Cheshire andMerseyside

38 High StreetBawtry, DoncasterSouth Yorkshire DN10 6JE

T 01302 710490E [email protected]

contact us


www.sequencehome.co.ukRESI/SEQ/010/18SEQ002196E April 2018

Trading name of Sequence (UK) Limited.

Sequence (UK) Limited is registered in England and Wales undercompany number 4268443, Registered Office is Cumbria House,16-20 Hockliffe Street, Leighton Buzzard, Bedfordshire, LU7 1GN. VAT Registration Number is 500 2481 05.

For the activities of advising on regulated mortgages and non-investment insurance contracts, Sequence (UK) Limited is anappointed representative of Connells Limited which is authorisedand regulated by the Financial Conduct Authority. ConnellsLimited’s Financial Services Register number is 302221.


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