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HOW IT WORKS
Through its network of over 2000 estate agents across the UK, nethouseprices are delighted to be able to offer the country's FIRST and ONLY genuine on-line property auction service which offers nationwide publicity with localised knowledge. For the very first time, buyers and sellers can attend the "virtual" auction room and enter into a binding contract as soon as the auction ends.
Here's how it all works....
At long last the general property-buying public can easily gain access to the property auction market - a domain previously almost exclusively available to property professionals, developers and those "in the know".
No need for any last minute pre-contract hitches, no more time-wasting, no more gazumping- Nethouseauctions emulates the efficiency and certainty of the auction scenario...from the comfort of your own home.
In conjunction with a local participating Nethouseauctions estate agent, a whole variety of properties are offered for auction on this website. Properties can range from building plots to tenanted properties, from residential to commercial and industrial investments, from studio flats to family houses.
* Any prospective Buyer can register to bid.
* Should you have a property that may be suitable for sale by auction please click here and Nethouseauctions will pass your details onto one of our recommended agents in your area.
* Should you wish to be kept informed of all future auctions, investment properties, development opportunities, etc. please register your details by clicking here.
1) Marketing
2) Viewings
3) Survey and legal pack
4) Finance
5) Registration as a bidder
6) Commitment Deposit
7) Confirmation of Deposit
8) Unique Bidders Authorization Code
9) Unique Bidders ID
10) Log-In
11) Amount of Bid
12) Registering a maximum bid
13) Automatic Bidding
14) Manual bidding
15) Tied bids
16) Bidding at auction
17) "Sudden Death" Bidding
18) The end of the auction
19) Exchanging the Contracts
20) Completion of the purchase
21) Returning deposits of unsuccessful Bidders
1) Marketing
An estate agent (who has pre-registered on Nethouseauctions) and their client (the seller) will have agreed to sell the particular property by auction and will normally begin marketing the property approximately 6 weeks before the auction date. At this time full property details will be prepared and the property will be advertised in the agents' office, and in the local press.
The property will be advertised on this site with the benefit of some 2 million hits a day and over 150,000 registered e-mail applicants.
The property will usually be advertised showing a Guide Price, which is meant to give an approximate indication of the expected eventual selling price.
2) Viewings
Prospective buyers will be able to view the property either by individual appointment or by way of block viewings. Details of viewing arrangements will be displayed with the Property Details on this site and can be arranged through the estate agent.
3) Survey and legal pack
Prospective buyers will have the opportunity to arrange for any surveys etc to be carried out and to take proper legal advice. We recommend that prospective buyers consult their solicitors at this point. Click Soliciors (England & Wales) or Solicitors (Scotland) to find a solicitor. The solicitor will be able to obtain a complete Legal Pack at a nominal price from the sellers solicitors, whose contact details will appear with the Property Details.
The Legal Pack contains standard information on title, standard pre-contract enquiries and the Auction Contract. It is a requirement that the Seller pre-signs the Auction Contract, prior to commencement of the Auction.
Please note that before a prospective buyer can bid, they must first register and instruct their solicitor to sign the solicitors undertaking on their behalf.
4) Finance
In anticipation of being the successful bidder, prospective buyers will need to arrange their deposit and the balance of their finances. We strongly recommend that all prospective buyers take their financial arrangements very seriously, as they will be expected to enter into a binding contract should they be the successful bidder.
5) Registration as a bidder
a) In order to bid, all prospective buyers will need to pre-register as a Bidder and provide their solicitors contact details.
b) They will then need to pay their solicitor the Commitment Deposit and ask them to sign the solicitors undertaking.
c) An email will then be sent to the bidder with their log in details, including their unique Bidders Authorization Code and Bidders ID, which will enable them to access their account and start bidding
6) Commitment Deposit
Prospective buyers will need to lodge with their solicitors a Commitment Deposit.
This is in order to replicate true auction conditions, whereby there is a formal commitment at the drop of the hammer.
The amount of this Commitment Deposit will be advertised with details of the property, however, it will be made up as follows- a Pre-contract Deposit of 5% of the Guide Price or £2,000 (whichever is the higher sum) plus the Buyers Premium of £250.
The Bidders solicitor will hold this deposit safely on their behalf in their clients' account until the date of the auction.
Prospective bidders will also have to pre-sign the Auction Contract (which their solicitor can obtain as part of the Legal Pack) or give their solicitors authority to do so on their behalf. The solicitor of the successful bidder will then be expected to exchange contracts within 24 hours of the virtual "drop of the hammer" using the Pre-contract Deposit. If they fail to do this, both the Pre-contract Deposit and the Buyers Premium will be forfeited.
If the prospective bidder is unsuccessful, they can immediately request the return of the Pre-contract Deposit and the Buyers Premium from their solicitor.
7) Confirmation of Deposit
A prospective bidder / buyer's solicitor will then need to confirm receipt of this deposit and the signed contract to nethouseauctions and register the Bidder by signing the Solicitors undertaking. We advise that the prospective bidder refers their solicitor to Bidders Solicitors guide.
8) Unique Bidders Authorization Code
Once the bidder has completed the registration process (registered, transferred their commitment deposit to their solicitor and asked their solicitor to complete and return the solicitors undertaking to Nethouseprices), 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.
9) 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.
10) Log-In
Once the validation email confirming log in details has been received, the bidder can log in, however, the 'Bidding Zone' will not be live until the auction commences at the time and date advertised on the website.
11) Amount of Bid
When the prospective bidder enters the bidding zone, they will be asked whether they wish to bid either automatically by registering a maximum bid (and let nethouseauctions do the bidding on their behalf) or manually right up to the virtual "drop of the hammer".
12) Registering a maximum bid
Your maximum bid is the maximum amount the bidder wishes to pay for the auction lot. If, for instance, the prospective bidder cannot attend the "virtual auction", or they do not wish to get "carried away" during the live bidding process, they may wish to set a maximum bid and let nethouseauctions bid on their behalf. As such all bids are confidential from other bidders and the seller.
Just because a maximum bid is registered, it is not necessarily the amount the bidder will pay. As long as the maximum bid is higher than anyone else's, the bidder will only pay one bid above the next highest maximum bid.
Maximum bids can be increased throughout the auction or you can revert to manual bidding.
13) Automatic Bidding
Nethouseauctions will automatically bid a maximum bid on a bidders behalf in multiples of £250 - but only to that amount above the maximum amount of the next lowest bid (subject to any reserve price).
In other words, if Bidder A registers a bid of £101,500, Bidder B a bid of £105, 600, and Bidder C a bid of £109,100 - Bidder C will be the highest bidder at an amount of £105,850. If the reserve price is £106,000 - Bidder C will still be the highest bidder at £106,250. Obviously this does not take account of any higher manual bidding.
14) Manual bidding
Manual bidding emulates typical auction room conditions. This will give the greatest flexibility, allowing them to bid right up to the time the virtual hammer falls.
15) Tied bids
If two or more bidders enter the same bid then the bidder who entered it first will be registered as bidding that amount.
16) Bidding at auction
Auction times and dates are normally set to finish at 3pm Monday to Thursday (for example finishing 3.00 pm Wednesday 18th April). Both automatic and manual bidding will commence from 24 hours before the specified time and date of the auction (i.e. from 3.00 pm Tuesday in the above example).
Bids will be recorded automatically with either registered automatic bids or live manual bids, however, it is usual that it is the majority of automatic bids that are registered at the early stage of the auction bidding.
17) "Sudden Death" Bidding
At the specified time of the finish of the auction (i.e. 3.00 pm), the bidding will become "sudden death".
The screen will continue to display the current highest bid and unique ID of the bidder, and after each new bid, you will have a further 45 seconds to increase the bid. Bidding will be terminated 45 seconds after the last bid is received.
At this time, provided the reserve is reached, the hammer will fall and the successful bidder will be committed.
18) The end of the auction
Once the Auction ends, Nethouseauctions will notify by email the successful bidders and all relevant parties, the sale details and price.
19) Exchanging the Contracts
Solicitors for both parties will already be holding signed contracts and the Commitment Deposit and will be expected to exchange contracts within 24 hours from the end of the auction, under the usual Law Society rules.
20) Completion of the purchase
Legal completion of the transaction is usually due 28 days thereafter, at which time the balance of funds will be due.
21) Returning deposits of unsuccessful Bidders
Unsuccessful Bidders will immediately be able to reclaim their commitment deposits from their solicitors.
We strongly urge you to view the guidance notes which specifically relate to you and our terms and conditions.
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