When it comes to buying or selling at auction, it is imperative to understand proceedings and in order to do this, being able to comprehend the common terminology often used is key. At first, the multitude of different phrases that tend to be thrown around can seem a bit daunting if this is your first time partaking in an auction. But no need to worry, in this blog we will take you through some of the key terminology and phrases that you are likely to hear when buying and selling at an auction!
A Guide Price is a figure used to convey how much a property is likely to sell for to potential buyers. This can be found on the details of the property and can be a single figure or a range.
A Reserve Price is a conditional price set between the seller and the auctioneer. This figure acts, as the name implies, as a reserve when the property is being auctioned. The reserve price is what the bidding has to reach before the auctioneer can sell it. This figure must be within the range of the guide price.
The Open Market Value of a property is an estimation made by the valuer of the expected price that a property would sell for in an open fair sale environment.
A Legal pack is a group of legal documents that are prepared by the seller's solicitor. They include documents such as a property information form, a fixtures and fittings form, EPC, Land Registry titles and special conditions of sale.
Entry Fee applies if you’re selling your property. It’s the charge for putting your property into the auction catalogue and for the promotion of it during the lead up to the auction, including weekly newspaper adverts, social media, Rightmove, Zoopla as well as conducting viewings.
A Sales Commission is charged to the seller when the auctioneer successfully sells their property.
An Addendum is a list of changes to any details of a property that are announced after the catalogue has been published. This should always be checked before an auction.
These terms are just the beginning when it comes to the auction process, so if you would like to learn more, make sure to follow our social pages, read the blogs on our website, or give us a call. We’ll be happy to answer any questions to make selling and buying at any of our 8 auctions in 2021 as easy as possible!