Auctions are an important part of our business and have been for more than 48 years.
When Metcalf's first started out in 1963 the properties were sold individually on the premises. However due to such a high demand in 1994 we started doing composite property auctions, i.e. where a large number of properties are offered on a fixed day at a local venue. This allowed us to bring a large number of buyers together and enhance selling prospects.
Today our auctions are still going strong and in 2010 we moved them to the Macdonald Tickled Trout Hotel, Preston New Road, Preston. Some properties sell over night, but others require the extra push of an auction!
FAQ's about Auction:
Why Auction? It offers maximum advertising for your property and a quick secure sale to a buyer who has the funds available and is ready to exchange.
How long? Once contracts have been signed it takes 28 days for completion.
What happens if the property doesn't sell? We usually get post sale interest however if this isn't the case then there are three options. 1.You can withdraw the property. 2.You can put the property for sale on the normal market. 3.You can put it into our next auction for half price.
How frequent are they? We usually hold six auctions this year and they take place approximately every two months.
What is the first step? You would need to book a valuation. They are free of charge and you are under no obligation to sell your property with us.
Can the buyer pull out of the sale? Once the buyer has signed the contract and paid the 10% deposit they are committed to the sale. If they pull out for any reason they will forfeit their deposit and could face legal action from the seller.
Will there be a reserve on the property? Yes. However this is usually discussed nearer the auction. The property will be advertised with a guide price. The reserve is confidential between ourselves and the seller.
Important information regarding arranging a Mortgage for an auction property:
- If you need a mortgage, this must be all sorted out with a written offer of a loan in your pocket
- When you buy a property at auction it is imperative that you get your finances in place before attending the auction. You will have to pay a 10% deposit at the auction - this is not the worry as you could use savings or a loan. However you then only have 28 days to pay the remaining balance.
- Anyone who has ever got a mortgage will know that it doesn't happen quickly! Indeed the banks and building societies on the high street take quite a while to process and underwrite a mortgage. When you buy a property at auction you are legally obligated to pay the remaining balance within 28 days. There is no other option. Therefore it is vital to organise your mortgage before you go the auction.
- Mortgage brokers are the best people to see when you want a mortgage as unlike bank advisers brokers are able to give you access to the whole of market products. The mortgage broker will help you to find the best product for you. Inform your broker that you want to buy a property at auction and you need the finance in place. He or she in turn will inform the lender - the bank or building society - and make sure the mortgage will be available to you in time.
- Seeking financial advice is crucial whenever you are buying a property but even more so when you are buying at auction given the short time scale you are given. If your mortgage is not in place you could find yourself getting to the end of the 28 day period and not having the funds to pay for the property. Of course since the sale is legally binding you must find a way. To save yourself this hassle make sure the mortgage is in place. Speak to a mortgage broker and research the offer banks and building societies have. If your mortgage is in place the process should run smoothly. You do not want to find yourself struggling to make the deadline so always be prepared.
IF YOU REQUIRE ASSITANCE ARRANGING A MORTGAGE CONTACT US ON 01253 624047
73 Topping Street