{"id":16279,"date":"2017-11-08T11:45:48","date_gmt":"2017-11-08T11:45:48","guid":{"rendered":"https:\/\/lisney.com\/?p=16279"},"modified":"2022-08-22T15:32:58","modified_gmt":"2022-08-22T14:32:58","slug":"selling-or-buying-at-auction-3-things-you-should-know-first","status":"publish","type":"post","link":"https:\/\/lisney.com\/selling-or-buying-at-auction-3-things-you-should-know-first\/","title":{"rendered":"Selling or buying at auction: 3 things you should know first"},"content":{"rendered":"

Property auctions have been a part of Irish life for centuries, as can be seen in films like The Field<\/em>. In recent years, auctions have become more popular with Irish people \u2013 but for buyers and sellers, an auction can be a jump into the unknown.<\/p>\n

There\u2019s the old worry about scratching the back of your head during an auction and the next thing you know, you\u2019re the owner of a four-bedroom house in Tullamore (that won\u2019t ever happen by the way; bids are always confirmed).<\/p>\n

To shed some light on the auction process, we\u2019re going to answer some of the most frequently asked questions.<\/p>\n

Property auctions for buyers:<\/strong><\/h2>\n

Can anyone make a bid at an auction?<\/strong><\/h3>\n

Technically, yes \u2013 though caveats apply. You\u2019ll have to register and either have a cheque or credit card for a deposit on the property at hand. Chances are, you\u2019re not going to wander in off the street on a whim.<\/p>\n

However, to get the most out of an auction you\u2019ll need to do your homework. If you make a bid at the auction and it\u2019s accepted, you enter a legal contract to purchase the house so make sure you\u2019re certain.<\/p>\n

To get the most out of an auction, you should come armed with mortgage approval and the intention of buying a specific property. If you win an auction for a house, you\u2019ll pay the 10 percent deposit on the day. However, if you don\u2019t yet have mortgage approval and your application is refused, you may lose the deposit.<\/p>\n

As well as securing mortgage approval in principle beforehand, you should also arrange to see the property before the auction with an engineer to check for any obvious structural issues. You should next get your solicitor to check that the deeds of the property are correct and in order (this should cost you less than \u20ac400).<\/p>\n

Any reputable auction will prepare legal packs which contain the Building Energy Rating (BER) certificate, copies of the deeds and Land Registry entries and replies to any queries that buyers have made.<\/p>\n

What is the reserve price on auction?<\/strong><\/h3>\n

Depending on the auction, the language around reserve pricing can be a little daunting to a novice. Sometimes you\u2019ll have an \u201cadvised minimum value or AMV.\u201d This is a guide price at which the seller has the choice to accept or not. The actual bid you make could be significantly higher.<\/p>\n

Other auctions will have a \u2018minimum reserve\u2019 which means that once this threshold is reached, a sale will be made to the highest bidder.<\/p>\n

What\u2019s my maximum limit on house auctions?<\/strong><\/h3>\n

In the height of the moment, people can get carried away. The BBC actually reported<\/a> that about half of eBay auctions\u00a0result in higher sale prices<\/a>\u00a0than the “buy it now” price.\u00a0Harvard Professor Deepak Malhotra says that a \u201cwin at any cost\u201d mentality can come into play for some buyers.<\/p>\n

The general advice is to know your budget and stick to it \u2013 as you will be liable for the entirety of the sale price at auction should you win.<\/p>\n

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Property auctions for sellers:<\/strong><\/h2>\n

What is the benefit of an auction over a regular sale?<\/strong><\/h3>\n

Houses go on sale at auction for many reasons. In some cases, it\u2019s because the property hasn\u2019t performed well on the open market. For others, there is comfort in knowing that there is an end date to the sales process.<\/p>\n

If you are looking to sell a property<\/a> within a specific timeframe with a pool of motivated bidders, a property auction could be the right option for you.<\/p>\n

What do I need to do to list my property at auction?<\/strong><\/h3>\n

You\u2019ll first need to contact an estate agent<\/a> and give a detailed description of the property including the exact square footage of every room in the house, the overall floor space, the garden size and any structural issues.<\/p>\n

Your estate agent will then run through your options to set the best reserve price for you.<\/p>\n

You\u2019ll also need an up-to-date copy of the property\u2019s BER certificate as you can\u2019t sell a property in Ireland without one.<\/p>\n

What happens if my house doesn\u2019t sell at auction?<\/strong><\/h3>\n

If the property isn\u2019t sold or doesn\u2019t reach the minimum\/reserve price, you have the option of accepting the highest bid made on the day at the auction. The benefit of a reputable auctioneer is that you\u2019ll have someone with experience in the market and industry on hand to advise you.<\/p>\n

If you don\u2019t want to accept any of the bids, you have the option of re-listing the property on the open market or entering it into the next auction, perhaps with a more comprehensive marketing list and answers to queries any potential bidders had.<\/p>\n

Have any more questions?<\/strong><\/h2>\n

Our team of property experts at Lisney are happy to answer any questions you might have.<\/p>\n

Whether you are unsure about putting a property up for sale at auction or you\u2019re having difficulty moving a property that\u2019s already on the market, we can advise you as to the best move for you. So, get in touch today<\/a> to see how we can help you.<\/p>\n

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