Going to an auction to buy a property can be a great way to get a good deal, however, for a novice, this can be a daunting and complicated process. If you are considering buying at auction, follow our simple step by step guide covering what the auction process involves and the main things you need to be aware of.
REQUEST A CATALOGUE
All properties are featured in the auction catalogue, which is usually available two weeks prior to each auction. Registration to receive the catalogue is available on our website
ARRANGE A VIEWING
To view any auction property visit the web site or call the auction office. Viewing representatives are available 6 days a week. Arrange a survey to be carried out on the property if required.
REGISTER TO BID
Before the, in the room and Livestream Auction you will need to register to bid if you wish bid online or via telephone or proxy.
You can select your choice by following the link below:
https://passport.eigroup.co.uk/bidder-registration/loveitts
DO YOUR RESEARCH
It is advisable that research is carried out prior to the
auction, to ensure that bidders have a clear idea of what is the highest price
they are prepared to bid up to. It is very easy in an auction room to get
carried away!
ORGANISE YOUR FINANCES
The successful bidder on the night of the auction is
required to sign the contract and enter into a binding legal contract,
therefore buyers must ensure that they have the finance in place to be able to
complete the matter within the time scales, usually 28 days after the auction.
DOWNLOAD LEGAL PACKS
The Legal Pack / Contract, that the successful bidder will
sign on the night of the auction, will be made available prior to the auction
and can be accessed via Loveitts web site. The Legal Packs are available via a
service provided by the Essential Information Group Ltd, which will not only
allow the download of the Legal Pack but will also keep purchasers updated with
any changes to the pack. Please note however that it is the responsibility of
all bidders to recheck the legal packs for any changes prior to bidding.
CHECK FOR UPDATES
If there are any amendments / additions to the information
held in the catalogue relating to each of the Lots, then an Addendum will be
issued prior to, and on the night of the auction.
ON THE DAY
Ensure you are online or by the telephone for the start of the auction.
EXCHANGING CONTRACTS
The successful bidder must sign and exchange contracts with the Vendors Solicitors prior to leaving the room and at the same time pay to the Solicitor a deposit of 10% of the purchase price (minimum £2,000) plus the Administration Fee.
COMPLETION DATE
As soon as the Auctioneers gavel falls on a bid, the successful bidder is under a binding contract to purchase the relevant property. Completion will occur 28 days after exchange, unless otherwise specified within the legal pack. Bids may be refused at the Auctioneers’ discretion. The Auctioneers reserve the right to bid on behalf of the seller up to the reserve.
METHODS OF PAYMENT
Payment of deposit on the night of the auction include debit card. Credit cards and cash are NOT acceptable.
ADMIN FEE
TO BE PAID ALONG WITH 10% DEPOSIT (MINIMUM £2,000)
Guide Price up to £15,000
£450 inc VAT
Guide Price between £15,001 to £250,000
£1,200 inc VAT
Guide Price £250,001 +
£1,650 inc VAT
IMPORTANT INFORMATION
Any guide prices or any estimates or values mentioned in negotiations or discussions with the Auctioneers or any of their representatives cannot be relied upon by a prospective purchaser as representing professional valuations for any purpose in accordance with the requirements on guidance notes of relevant professional bodies or other authorities. In all respects prospective purchasers are deemed to have relied upon their own knowledge or the advice of their own professional or other advisors. Also the reserve price may in some instances exceed the quoted Guide Price.Properties sold at auction are not normally cleared of furniture and effects on completion.
ALL BIDDERS MUST READ THE IMPORTANT NOTICE TO BIDDERS FOUND IN THE FRONT PAGE OF THE AUCTION CATALOGUE.
What is a guide price?
The guide price is an indication of the sellers’ minimum expectation. It is not a valuation or a figure at which a lot will sell for and may change at any time prior to auction.
What is a reserve price?
Each Lot will be offered subject to a reserve. This is the figure below which the auctioneer cannot sell the lot. The reserve will be set within the guide price range and will be no higher than the upper end of the guide price range.
Can I view the property before the auction?
Yes of course, just visit our web site or call our office to arrange a viewing.
Can I get a survey done on the property prior to the auction?
If you require a survey, your surveyor should contact us for access.
Do I need a solicitor?
You can choose to appoint a solicitor prior to the auction to review the Legal Pack on your behalf. If you are the successful bidder, you will be required to provide details of your solicitor on the night of the auction, as you will need legal representation to deal with the completion of your purchase.
Do I need to register to bid at auction?
There is no requirement to pre-register for the auction.
What if I can’t attend the auction – can I still bid?
We strongly advise you to attend the auction but for those who are unable, we provide a remote bidding service by telephone or proxy bid. Telephone/proxy bidding forms are available within the catalogue. The completed form must be returned to Loveitts Coventry office in person not less than 2 working days prior to the auction, together with payment for the 10% deposit and the Administration Fee.
Can someone else bid on my behalf on the night?
Yes, however they must bring with them 2 forms of ID for themselves in addition to your 2 forms of ID. They will also need a Letter of Authority from you. It must be noted that should you default, the bidder will be liable.
What do I need to bring with me to the auction?
You must bring with you 2 forms of ID, something that has your photo on it, (passport or photo card style driving licence), plus proof of address (recent utility bill or bank statement). Without your 2 forms of ID you will be unable to bid at the auction. Only original documents will be accepted. This is required by anyone who will be signing the contract.
Are there any other costs involved?
Successful bidders will be liable to pay an Administration Charge as indicated in the catalogue. You will usually be required to pay for the legal searches, as per the solicitors Legal pack, plus any other costs that the seller solicitors has added into the contract (if any). It is essential therefore that you have read the legal documents prior to the auction.
If I am a successful purchaser, when do I need to pay the balance of the purchase price and complete the sale?
The remainder of the monies are payable no later than 28 days after the night of the auction (unless stated otherwise in the contract), this is when completion will take place, and the property become yours.
What happens if I change my mind after winning a bid?
On the fall of the hammer you enter into a binding contract. If you fail to complete on time you may loose the property and your deposit. You will be in breach of contract and risk being sued by the seller.