This is one of the most common questions we encounter with potential UK Property Auction properties. It is the seller’s fear that they are not going to get what they think they should. There is a mechanism in an auction room that ensures that you do not lose out and that is the Reserve.
Properties offered in a UK Property Auction are subject to a reserve price. This figure is discussed with the seller of the property and the auctioneer prior to any marketing or bidding in the auction room. This figure is completely CONFIDENTIAL.
For example, your property is considered to have a guide price of £100,000 plus – the reserve would be set at 10% of this at £110,000 and guided at £100,000 to £120,000.
What happens on auction day if the property doesn’t reach the reserve?
Typically, if bidding doesn’t reach the reserve, in the above example of £110,000 and the bidding stops at £105,000, a team of auctioneer’s assistants will go to the seller and the bidder to reach a compromise. In the example, the seller may consider £106,000 and the buyer accepts and the sale proceeds under auction conditions.
On the day of a UK Property Auction, bidders must register an interest in a property or properties. At this point, they agree to the auction conditions. These terms and conditions are binding to the condition of purchase and may include; ‘Buyer beware’, ‘10% of purchase price must be paid on final tap of the gavel’, ‘Full monies to be paid 28 days after the auction date’ to name but a few.
Nottingham Office:
Castle Cavendish Enterprise Centre
63-67 St Peter’s St
Nottingham
Nottinghamshire
NG7 3EN
Telephone: 0115 6480300
Email: info@quicksaleagent.co.uk
