Actually, it's quite the opposite. Online property auctions are conducted entirely through digital platforms, eliminating the need for physical cash transactions. To participate in an auction, you need to ensure you have the necessary funds in place beforehand. You have the flexibility to explore various financial options, such as securing a bridging loan or mortgage, to support your bidding process.
A guide price serves as a marketing estimate indicating the potential value of a property, providing potential buyers with a reference point. It's important to note that guide prices are not definitive sale figures; the actual sale price will be determined by bidding in the auction room. Guide prices may be presented as a single figure or a range, and they are subject to change prior to the auction. Always refer to the property details page for the most current guide prices.
The Reserve Price represents the minimum price the seller is willing to accept for the property at auction. It serves as the threshold below which the auctioneer is not permitted to sell. Typically, the reserve price is kept confidential and known only to the seller and the auctioneer. In some cases, a property may be listed without a reserve price, which means that technically it can be sold if even a very low offer, such as £1, is received. It's important to note that both the guide price and the reserve price are subject to potential changes leading up to and including the day of the auction.
To participate in the auction, all bidders are required to complete a pre-registration process via Passport by EIG. During registration, you will be prompted to upload identification documents such as your driving license, passport, utility bills, and bank statements. Additionally, you will need to indicate the lots you intend to bid on and specify your preferred bidding method, which can be via telephone, internet, or proxy bidding. Please be aware that our auction team will carefully review and authorise your registration for the requested lot, confirming your chosen bidding method. It's important to note that there is a limited number of telephone bids available for each lot.
The Special Conditions contain any amendments required to the general conditions for the relevant property. Special Conditions are produced by the Seller’s legal advisor and are read and amended in conjunction with the General Conditions of Sale and Extra Conditions. Special Conditions usually include:
Details about the property.
Amendments needed to the general and extra conditions.
Details of any new terms, covenants or easements, VAT and tenancies.
Yes, this is possible. We will present the offer to the seller (along with confirmation of the buyer checks, proof of funds plus other credentials we have) and inform you of the decision. In our experience, most wish to wait and see how things go with the bidding but some may go ahead.
Congratulations on winning the bid! You will be required to make a payment of 10% of the purchase price, along with any agreed costs, using a registered debit card. It is your responsibility to arrange insurance for the property after the exchange of contracts. We recommend contacting your insurers promptly or feel free to contact us and we guide you with the next steps to take If the property you were interested in does not meet its reserve, we will contact you if you were the underbidder. There may still be an opportunity for you to purchase the property following the conclusion of the online auction.
Investing in property can be a highly rewarding endeavour. By conducting thorough research beforehand, establishing well-defined financial boundaries, and adhering to them, you can greatly enhance your auction experience compared to traditional real estate agents. It's important to note that participating in an auction entails a legally binding commitment. As the successful bidder, you immediately assume ownership of the property, eliminating any risks of gazumping. Many individuals discover that auctions offer a less stressful, quicker, and more secure purchasing process compared to alternative methods.
Once an online auction concludes, the winning bid instantly transforms into a legally binding contract. This unique aspect of property auctions ensures remarkable speed in completing the sale and provides unparalleled security for both buyers and sellers. It completely eliminates the possibility of gazumping, offering a worry-free experience for all parties involved.
Prior to registering to bid, we strongly advise you to personally visit the property and thoroughly review all the legal information included in the Buying Information Pack for each specific Lot. It is crucial to ensure that you can fulfil all the Auction Terms and Conditions before proceeding with your bid. If you don't already have an account, you will need to create one before you can register for bidding on the property. On the website, you will find a "bid to purchase" option for each property, which you can click to initiate the registration process. During registration, you will be required to provide certain information to verify your identity and may need to input payment details for any applicable fees. Please note that we need to approve your bidding status, so it is vital to register as early as possible if you intend to participate in the auction.
Upon exchanging contracts there will be an administration charge of £1250 (inc VAT). For transactions under £10,000 a £500 (inc VAT) administration charge will be payable to Swift Property Auctions Ltd.
An addendum is sometimes made available a few days prior to or on the day of the auction. It is used to amend any errors in the legal pack or auction catalogue.
No, it is not necessary to do so. In fact, this approach can often be counterproductive and potentially negatively impact the property's reputation. When properties are directly entered into auction without prior marketing through estate agents, they typically achieve higher sale prices. This is because they are newly introduced to the market and have not been negatively affected by potential overpricing or previous failed sales. If your property is suitable for auction, it is advisable to prioritise the auction route as your primary choice.
Yes, there may be additional fees associated with buying property at auction. These fees are typically listed in the contract or special conditions of sale. They can be for a variety of things, including:
The cost of searches, such as title searches and environmental searches.
An apportionment of costs, such as legal fees and selling costs.
Fines for delays in completion, such as late payment of the deposit or failure to complete on time.
The serving of notices, such as notices to proceed with the sale or notices to complete.
It is important to read the contract or special conditions of sale carefully to understand what additional fees may be payable. These fees can vary depending on the property and the auction house. Here are some tips for avoiding additional fees at auction:
Read the contract or special conditions of sale carefully before bidding.
Be prepared to pay the additional fees if you are successful in your bid.
By following these tips, you can help to avoid unexpected additional fees when buying property at auction.
