Jeremy Zeid, a partner in Carter Jonas' Cambridge office is gearing up for the sale of a property at auction on 13 May. He puts property auctions under the spotlight:
People sell property at auction for a range of reasons – emigration, the need to release equity at short notice or as administrators of a Will with a property who need to sell the house for the beneficiaries - but the main motivation is the need to sell a property quickly.
In many of these, or similar circumstances, selling a property by auction does have advantages.
If you need to realise a sale within a fixed timescale, the auction process will deliver.
Properties are usually advertised for a period of between 4 and 6 weeks before the auction and completion of the sale usually takes place 21 days later.
The process is no longer purely associated with repossessions but a wide variety of properties from the weird and wonderful like water towers, windmills and public conveniences where value is difficult to ascertain to the more traditional cottage or house in need of renovation, building plots, tenanted properties, agricultural land and farms.
Unlike Private Treaty - the traditional method of selling by estate agents - there is no opportunity for the buyer to pull out or try to reduce the price because of a poor survey.
At the fall of the hammer a contract comes into place and the buyer is legally obliged to pay a 10 per cent deposit on the day, with the balance being payable usually 21 days later.
Bidding takes place in a competitive atmosphere. The highest price will be achieved for the property in the market at that particular time.
Some buyers may set themselves a level over which they will not bid however in the heat of the moment this can be exceeded.
The auction process should not cost any more in legal fees than buying in the conventional way. Any additional costs associated with the process can be recovered from the buyer through the auction contract on completion.
So if you have a property for sale and you feel the need for speed you, selling at auction could be the right option for you.
Carter Jonas properties coming up for auction soon, include:
The Green, Bardsea Green in Ulverston, Cumbria
A substantial detached house in an elevated postion, set in 1.75 acres. The property, which requires substantial refurbishment/renovation, will be offered for sale by public auction – unless sold previously – at 2pm on Friday 24 April. The auction guide price is £200,000-£300,000. More information can be obtained from Carter Jonas in Kendal: T 01539 722592.
Home Farm, Fiddlers Hamlet in Epping
A detached 5-bedroom farmhouse in need of substantial refurbishment, set in about a third of an acre. The property will be offered for sale by public auction – unless sold previously – at 2pm on Wednesday 13 May. The auction guide price is £500,000 and all bidders must register before the auction and obtain a bidding registration number. To register, or for more information, contact Carter Jonas in Cambridge: T 01223 346630.