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Frequently Asked Questions
1. Who are Nethouseauctions?
2. How do normal auctions work and how are you different?
3. Why do I need to use a solicitor, can I not just register to bid without one?
4. Do I need to register?
5. How do I register?
6. How much is the Commitment Deposit?
7. How do I bid?
8. What is a maximum bid?
9. Can Nethouseauctions bid automatically on my behalf up to a maximum amount?
10. Can I bid manually?
11. What is the Unique Bidders Authorisation Code?
12. What is the Unique Bidders ID?
13. Can I buy before the auction starts?
14. The reserve price wasn't reached, can I still buy the property?
15. Is there an upper limit to the size of bids?
16. What is the "Bidding Zone"?
17. How much can I bid?
18. I am the successful bidder but do not wish to purchase the auction lot
19. Is it legally binding?
20. When does it become legally binding / Do I need to sign a contract?
21. When does legal completion take place?
22. Can the agent make any changes to the auction lot once the auction starts?
23. What are the costs?
24. What is a buyers premium?
25. What is the addendum?
26. What is the guide price?
27. What is the reserve price?
28. What is the legal pack?
29. How long is the marketing period for?
30. How will you market the auction?
31. What properties are suitable for auction?
32. What are overage payments?
33. How long does the auction last?
34. Can I sell my property using Nethouseauctions?
35. What are the benefits of selling at Nethouseauctions as oppose to Open Market (Private Treaty)?
1. Who are Nethouseauctions?
Nethouseauctions is a new service brought to you by Nethouseprices Ltd, who originated in June 2004. They created one of the first property information websites www.nethouseprices.com and provide FREE records of property sales recorded since April 2000 in Scotland and since May 2000 in England and Wales. Since then, Nethouseprices has grown to be one of the public's
favorite property websites providing all sorts of useful free property information together with over 80,000 properties for sale and to let advertised through some 2000 agents.
The site is run by 2 Chartered Surveyors with over 37 years experience between them in the property market supported by a dedicated skilled team.
2. How do normal auctions work and how are you different?
We are not that different from a normal auction house, the most obvious differences are:
- We don't charge the agent or seller, we only charge a buyers premium
- Nethouseprices are not estate agents. The property is "sold" through anyone of approximately 2000 Nethouseprices estate agents throughout the UK.
- We are a paperless business and we do not take cheques
- We only deal in "cleared" funds this eliminates bounced cheques and rogue bidders
- The Auction House and fall of the hammer is virtual, as opposed to being held in a physical building
- Each property is sold through a local agent, carrying out viewings and marketing in the usual way
- In addition to advertising in the local press and trade related magazines and papers, we have the benefit of approx 2 million hits and 40,000 unique visits to the website daily.
- There is no need to waste time and money travelling back and forth to the major Auction houses.
The similarities are:
- We still advertise the auction lots similar to most auction houses but in addition we benefit from existing traffic coming to the site
- The agent will act in the role of auctioneer by inspecting the property, producing particulars, arranging viewings, registering property on the site to sell at auction, etc.
- We will bid on behalf of a bidder up to their maximum amount specified
- As a Bidder, you can still bid manually and feel the thrill of the "sudden death" auction
- As both Sellers and Bidders must pre-sign the Auction Contract - an exchange of contracts is virtually guaranteed.
3. Why do I need to use a solicitor, can I not just register to bid without one?
You will need to consult your solicitor to initially register. The reason for this is that we are asking for your solicitor to sign an undertaking that they have received your deposit and in the event you are the successful bidder, they will transfer over this deposit to the sellers solicitor. They must also confirm that you have pre-signed the Auction Contract.
Normally in an actual auction house, the auctioneers will ask for a blank cheque of 10% of your maximum bid, if they are bidding on your behalf or 10% of the sold price as a deposit, if you are physically in the room. There is no certainty that this cheque will clear, so occasionally this system breaks down. By asking for a solicitors undertaking, it reduces this risk.
4. Do I need to register?
In order to avoid ?rogue? bidders, bounced cheques, etc. and to obtain a binding offer, all prospective purchasers must register in advance of the auction as a Bidder.
5. How do I register?
a) Register as a bidder by clicking here.
b) Pay your solicitor the Commitment Deposit (as displayed as part of the advertised property details) and pre-sign the Auction Contract.
c) Your solicitor will then need to send an unequivocal Undertaking to Nethouseauctions, that, in the event of their client, being the successful bidder, they will exchange contracts on their clients behalf, using the pre-contract deposit.
d) After this undertaking has been received by Nethouseauctions the bidder will receive their unique bidders authorization code to allow them to start bidding on the specific auction lot.
e) All unsuccessful Bidders will be free to request from their solicitors the return of their Commitment Deposits (including the Buyers Premium) immediately upon completion of the auction.
6. How much is the Commitment Deposit?
The amount of the Commitment Deposit required will usually be displayed as part of the advertised property details. The amount will be a total of a Pre-contract Deposit of 5% of the advertised Guide Price (or the sum of ?2,000, whichever is the greater) plus a Buyers Premium of ?250
7. How do I bid?
Once you have registered, you will receive an email with log in details allowing you to enter the ?Bidding Zone?
As soon as you are in the Bidding Zone, a decision will need to be made as to:
- whether you want Nethouseauctions to automatically bid on your behalf up to your maximum amount
- or you would like to bid manually, please note that you may continue to bid manually once you are up to your maximum bid.
Please note to avoid disappointment, register as soon as possible before the commencement of the auction
8. What is a maximum bid?
This is the maximum amount a bidder has specified that they would like Nethouseauctions to automatically bid up to. The maximum price authorized must be an exact figure (accordingly wording such as "?100 over the highest bid" will not be acceptable).
If you have set a maximum bid, the computer will only bid ?250 above the next lowest bid to your bid, subject to any reserve price and subject to any manual bidding.
You will still have the option to bid manually if the bidding goes above your maximum bid.
9. Can Nethouseauctions bid automatically on my behalf up to a maximum amount?
Yes. You are able to bid either manually or authorizing Nethouseauctions to bid on your behalf up to the maximum bid specified. Please see "What is a maximum bid?"
10. Can I bid manually?
Yes, as soon as you have completed the registration process and have logged in to the bidding zone, you will have the option as to whether you would like to bid manually or for Nethouseauctions to bid automatically up to the maximum bid specified.
11. What is the Unique Bidders Authorisation Code?
Once the bidder has completed the registration process, the bidder will receive their unique Bidders Authorisation Code, Bidders ID and log in details to access and activate the "Bidding Zone" to start bidding.
This Unique Bidders Authorisation code is unique to each and every auction and bidder.
12. What is the Unique Bidders ID?
In order to recognise your own bid and to avoid any confusion with other bidders, at the time of registration you will receive an individual Bidders ID. All through the bidding process, this unique Bidders ID will be displayed against the current highest bid. This ID is unique to the bidder and auction lot.
13. Can I buy before the auction starts?
Yes, you can. As in any auction, you can bid via the agent prior to the commencement of the sale. Should the bid be acceptable, you would be expected to immediately exchange contracts, as the legal paperwork will already be in place. The auction lot will then be withdrawn from the auction.
Once the auction has started, however, you will have to wait until it has ended. If your bid is the highest and has met or exceeded the reserve price, you will be the successful bidder.
14. The reserve price wasn't reached, can I still buy the property?
Yes, you can. You will need to immediately contact the agent who marketed the auction lot and continue your negotiations through them. You will still be able to sign the binding auction contract.
15. Is there an upper limit to the size of bids?
No
16. What is the "Bidding Zone"?
The Bidding Zone can only be accessed by an authorised Bidder after they have completed the registration process. The bidding zone will allow you to make bids for your particular auction lot. Your unique authorisation bidding code will need to be entered only once to activate the Bidding Zone.
17. How much can I bid?
There is no upper limit to the size of your bid
18. I am the successful bidder but do not wish to purchase the auction lot
Unfortunately you will forfeit your Pre-Contract Deposit which will now be paid by your solicitor to the sellers solicitor as compensation. Similarly, the Buyers Premium of ?250 (inc VAT) will also be payable directly to Nethouseprices.
19. Is it legally binding?
The Seller agrees to sell the property via auction through nethouseauctions, and pre-signs the Auction Contract, giving their solicitor authority to exchange contracts as soon as the auction ends with the highest bidder (subject to any reserve).
Similarly, every bidder must register with their solicitor by paying the Pre-contract Deposit and pre-signing the Auction Contract.
Therefore as soon as the auction ends the 2 respective solicitors are able to exchange contracts.
20. When does it become legally binding / Do I need to sign a contract?
Every bidder must register with their solicitor by paying the Pre-contract Deposit and pre-signing the Auction Contract.
Similarly when the Seller agrees to sell the property via auction through nethouseauctions, they must pre-sign the Auction Contract, giving their solicitor authority to exchange contracts as soon as the auction ends with the highest bidder (subject to any reserve).
Therefore as soon as the auction ends the 2 respective solicitors are able to exchange contracts and that forms the legal contract.
21. When does legal completion take place?
Usually 28 days after the auction.
22. Can the agent make any changes to the auction lot once the auction starts?
No
23. What are the costs?
Costs to Agents - Nothing! Nethouseauctions will not charge agents for registering and advertising their property to be sold at auction. Nethouseauctions are working in conjunction with local agents allowing agents to benefit from 100% of the fees and pick up new instructions which may not have been previously available to them.
Costs to Seller - Nethouseauctions will not charge the Seller. However, the agent is likely to charge the seller typically between 1 and 3% of the sale price achieved.
Costs to bidder - Only the successful bidder will pay a nominal fee of ?250 (inc VAT) to us.
Costs to casual browsers - Absolutely FREE!!
24. What is a buyers premium?
A "buyers premium" is a one-off ?250 (inc VAT) fee, paid by the buyer / successful bidder to Nethouseauctions in addition to the purchase price. This is a standard fee throughout virtually all the auction houses. Please note that this is only paid if you are the successful bidder!
25. What is the addendum?
This is additional information provided by the agents or sellers solicitors after the Legal Pack has been prepared.
26. What is the guide price?
The guide price is purely an estimate of the price that the estate agents consider that the property might be sold for. Where a guide price is given, that price is not to be taken as an indication of the value of the lot or of the reserve price. It is your responsibility to decide how much you should bid.
27. What is the reserve price?
Unless otherwise stated, each lot is subject to a reserve price. If no bid equals or exceeds that reserve price, the lot will be withdrawn from the auction. The seller may bid (or ask us or another agent to bid on the seller's behalf) up to the reserve price, but may not make a bid equal to or exceeding the reserve price. The reserve price will normally be decided 2-3 days prior to the auction.
28. What is the legal pack?
The legal pack will have been put together by the Sellers Solicitors during the 6 week marketing period, ready to be sent out to the solicitors of all interested parties. It will include similar information to that required for the soon-to-be-compulsory Home Information Packs. This will include the sale contract, local searches, title deeds and etc.
29. How long is the marketing period for?
Approximately 6 weeks
30. How will you market the auction?
This will be achieved on our main website www.nethouseprices.com, through various adverts in trade related magazines and papers and through estate agents in local papers and shop windows.
31. What properties are suitable for auction?
Any property that is unusual in some way, or may generate exceptional interest would be suitable to take to auction. For example:
- Properties in need of renovation
- Repossessed properties
- Tenanted flats or houses
- Building land
- Ground rents
- Residential, commercial and industrial investments.
Standard well-presented family homes would not usually be appropriate, unless there are exceptional circumstances such as disputes, Court Orders or a dire need to release cash quickly
In certain circumstances, situations where there is huge interest in a property that would otherwise have gone to a Formal Tender or Best Bids situation may also be appropriate.
32. What are overage payments?
Any surplus / extra amounts
33. How long does the auction last?
The auction bidding will last for a period of 24 hours up to the specified time and date of the auction. Thereafter bids will continue to be accepted in increments of £250 until 45 seconds has lapsed since the last bid was received. At which time the auction will end.
34. Can I sell my property using Nethouseauctions?
Yes, but this will need to be through your preferred estate agent. If you already have an agent please ask them to register on this site if they haven't already done so, if you don't have an agent, please click here.
35. What are the benefits of selling at Nethouseauctions as oppose to Open Market (Private Treaty)?
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SALE VIA
NETHOUSEAUCTION
(online auction house)
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SALE BY ACTUAL AUCTION HOUSE
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SALE BY OPEN MARKET
(PRIVATE TREATY)
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Immediate
exchange of contacts
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Immediate
exchange of contracts
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No
guaranteed sale date
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Cash
purchase / funding in place - minimum 5% of guide
price or ?2000 deposit paid via solicitors.
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10%
deposit paid at auction - no guarantee against bounced cheques though.
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Purchaser
still has to raise sufficient funds / deposit which can cause a delay.
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Not
subject to contract.
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Not
subject to contract
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Sale is often subject to survey,
mortgage approval, purchasers own sale (ie they may
be in a chain).
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Best
price achieved through competitive bidding. You can bid from anywhere in the world at
any time within 24 hours, as its a virtual as opposed to physical auction
room. There are no limits as to how many bidders can bid at any one time and
the auctioneer cannot miss your bid
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Best price achieved through
competitive bidding.
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Single
bidder may dictate the sale price.
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Fixed
completion date.
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Fixed
completion date
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No
definite completion date even once a sale is agreed.
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Quick
sale - without compromising sale price.
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Quick
sale - without compromising sale price
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Open
ended marketing period that may not lead to a sale. 30% of private treaty
sales fail to complete.
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Nethouseprices will advertise via the following means:
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Nationwide
through our website which achieves approx 2 million hits per day and
approximately 40,000 unique visits daily
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Email
database of 150,000 applicants
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Property
related trade magazines and papers
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Local
agents mailing list and in local papers.
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Auctioneers data bases often
contain 1,000s of potential buyers. They tend to market in local and
nationwide trade related papers and magazines and in catalogues sent to their
mailing list.
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Estate
agents usually have limited mailing lists. with only local advertising
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Costs to Agents - Nothing! Nethouseauctions
will not charge agents for registering and advertising their property to be
sold at auction. Nethouseauctions
are working in conjunction with local agents allowing agents to benefit from
100% of the fees and pick up new instructions which may not have been
previously available to them.
Costs to Seller - Nethouseauctions
will not charge the Seller. However, the agent will be entitled to charge the
seller typically between 1 and 3% of sale price.
Costs to bidder - Only the successful bidder
will pay a nominal fee of ?250 (inc VAT) to Nethouseauctions.
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Costs to Agents - The Agents are effectively
being replaced by auctioneers.
Costs to Vendors - Auction Houses charge an entry fee of ?500 to ?2,000 with no guarantee
that the property will be sold.
Auction Houses will also charge between 1-3% of the sale price to sell
via auction.
Costs to bidder - There is a buyers
premium of ?250 which is typically payable.
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Agents
will charge the seller between 1 & 3% to sell and may charge their client
for any advertising
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Valuations
are carried out by network of over 2000 agents locally based who have
acquired local knowledge and expertise.
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No
guarantee that the valuation will be carried out by local auctioneer who has
localised knowledge and experience of the area
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Valuations
are carried out by local agents who have localised knowledge and experience
in the area
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