An auction is one of the most common methods for selling property – and for very good reason. It can save a huge amount of money, especially when it comes to buying a property, which is why many people choose this route. Before you decide to go ahead with a quick-fire bidding method for getting your new home, whether you’re a potential homebuyer, or simply curious about the property auction process and how it works, we’ve got some essential tips to help you get started. This is especially useful for first-time bidders – so, our guide is aimed at beginners, but much of this will also apply to more seasoned customers if you’re looking for a refresher course.
When you make a bid in an auction, whether it be online or live, there is a commitment to buy the item if you are the highest bidder. This means that you cannot retract your bid or decide not to purchase the item after you have placed your bid. Experts including estate agents in Portslade opine that the consequences of this could be huge and people are often unaware of the risks involved by pulling out at auction. In many cases, you may be liable for the amount you bid if you change your mind once the hammer has come down.
You cannot back out
When you make a bid in an auction, whether it be online or live, there is a commitment to buy the item if you are the highest bidder. This means that you cannot retract your bid or decide not to purchase the item after you have placed your bid. The consequences of this could be huge and people are often unaware of the risks involved by pulling out at auction. In many cases, you may be liable for the amount you bid if you change your mind once the hammer has come down. However, some auctions are subject to a specific law called the Sale by Auction act which states: Once the auctioneer has announced that the bidding is open, no bid may be retracted. The Sale by Auction act is there to make sure the highest bidder cannot back out of the sale. If they do, it may be classed as a breach of contract which means legal action can be taken against them. The outcome could mean hefty costs imposed on the reluctant bidder or maybe even court action.
Protection law while online auction
The Consumer Contracts Regulations 2013 changed our right to cancel an order for goods bought at a distance – including online, by phone or mail order. The new rules give buyers 14 days to change their minds and get a full refund (including outward delivery costs), even if there’s no fault with the goods. Before this change, consumers had seven working days cooling-off period when purchasing items by mail order or over the internet. If they wanted to return an item they had to pay return postage. Now they’re entitled to cancel their order up to 14 days after receiving it, even if there’s nothing wrong with it and have their money refunded (including original postage costs).
Read all terms and conditions
Auction houses have their terms and conditions, so check them before you buy. Auctions are a quick way to sell items, but they can be just as quick to buy them – especially if you don’t know what you’re doing. The main thing to remember is that once you’ve entered a bid, you are agreeing to the auction house’s terms and conditions. Different auction houses will have different costs – from the deposit amount to additional fees or taxes. If you see something that you really want at an auction, then it’s important to thoroughly check the terms before bidding for it.
Stay protected
Buying at auction is an exciting experience and a great way to get your hands on a bargain. Auctions are fast-paced, but with the right preparation and knowledge, you’ll be ready for the action. Think about how you want to bid – there are numerous ways to do this and in some cases, you can even pre-register your maximum bid amount. This way the auctioneer will carry out the bidding on your behalf until your limit is reached and only then will you be required to bid again. You can also opt for live bidding online and telephone bids over the phone are an option too. The first thing is to choose a reputable auction house, visit it and make yourself known to the staff. There will be a lot of information available online but it’s always a good idea to head to the saleroom and introduce yourself. Make sure you are clear about the terms and conditions of sale. All auctioneers have their own terms and conditions so check these before bidding. You should be aware that there is no cooling-off period for buyers – once you have signed the bidding slip you have agreed to buy the lot at that price.
