Auctioneering Flashcards
How have you advised clients on the suitability of sale by auction?
Written and verbal communication, I’d advised on the process itself, and suitability including value (affordability) development/hope value. Requirement for quick. expected level of interest
How have you advised clients on an apprpriate auction reserve and guide prices?
Advised that auction reserves must be within 10% of the guide price (vice versa).
guide cant exceed the reserve
Explain how you were involved in selling lots?
From booking items in at machinery sale, taking reserces discussing values, advising on Buyers premium/commission.
Taking bids on each lot, being mindful of reservce price, VAT status etc
How have you managed an online auction sale?
- Manage marteye live online bidding platform
- uploading lots, ensuring clearly indentifiable
- entering bids as they come from the field and bidding on behalf of online buyers to the auctioneer
How have you accounted to a client post auction?
Provided a list of lots sold, and their sale prices. using newline to deduct commission
Land at Yew Tree Lane
Describe the field
16 acre arable field
road side access
hedgerow boundaries
no water or electric
grade 3
clay soil
Land at Yew Tree Lane
What other disposal methods did you consider?
Formal tender as it allowed short completion period
Land at Yew tree lane
Why did you discount those methods over Auction? (formal tender)
formal tender doesnt allow for competitiive bidding which i thought likely given the area and affordability/interest
What was your recommended sale price?
£140000
How did your advice add value to your Client achieving success in their project?
- property made over market value due to number of bidders in room running up price & competive bidding
- completed before year end as per his objectives
Kidderminster Machinery Sale
Can you provide an example of when you’ve given advice on auctioneering an unusual item?
garden grocers vintage cart - provided advice on value after doing research and finding comps
Kidderminster machinery sale
Talk us through how you formulated valuation advice for the lot as auction.
Often times valuation advice is verbal at machinery sales, client had delivered item and was returning the following day to discuss reserve/val advice. I explained that my valuation was based of comparable evidence but that every object is different
Kidderminster machinery sale
what advice did you give as to auction strategy?
- sell on internet section as it was unique and needed higher marketing
- set a reserve price - allows auctioneer to run up
What did that lot eventually sell for? (garden cart)
£450
How have you compiled information relating to real estate to be sold at auction?
Instructed solicitors to conduct searches, and prepare legal pack inc. TR1, contract & a copy of title & plan.
sales details into particulars
How have you assisted in the process of drawing up auction catalogues?
Getting photos of lots, entering lots on newline system, ascertaining reserves and VAT status. Calling vendors to generae entries. Advertising postsH
How have you dealt with queries and issues raised prior to the auction in consultation with others?
queries inc vat status, date of sale, when items are available for entry. commission rates. issues - not having transportation, provide contact details for trusted transport companies.
How have you dealt with issues arising post auction in consultation with othes?
Dealt with buyers thinking they paid less for a lot - i then refer to clerks sheets as point of reference.
or sellers thinking they told someone a different reserve, i look back at entry form and check reserve - and that they have signed it on the reserve provided
Doverdale - Land auction
Describe one of the key improvements required before re-letting.
- Fencing - all of the fences were in a very poor state and essentilally not stock proof
Doverdale land auction
Was a dilapidations claim considered to bring about some or all of the repairs required?
client had liaised with solicitor and lease was not contracted out of the 54act tenancy and there was concerns that if dilapidations were persued the tenant wouldnt leave
Land at Doverdale
Describe the information you collated for the auction catalogue
legal pack
completion deadline
deposit information
aml requirements
descroption of the property
location cropping etc
Land at Doverdale
How did you value the lot?
comparable value
land at doverdale
what as the agreed marketing price?
£110-120000
Land at Doverdale
Talk me through your marketing scheme?
mixed strategy - organic posting out details to local nearby farmers, sale board, & advertisement in machinery sale catalogue
wider strategy using standard techniques collectice proeperty brochure, advertisement on social media, property portals etc
Land at Doverdale
Talk me through the checks you undertook on bidders, nothing any key steps.
AML checks
Proof of funds
Post Sale Management
What was the lot which the customer had missed out on?
2nd hand harrow
Post sale management
How did you document the concern of the customer in case it was ever escalated.
Made written note in sale notes of the issue and also flagged it with the online bidding platform that we use.
post sale management
What ethical and professional standard did you exemplify in the way you responded to the customers concerns?
treated the customers with respect, took responsibility for the matter
Talk me through the legislative/regulatory requirements relating to auctions?
Auction (bidding agreements) Act 1927/1969
Estate Agentss Act 1979
Auctions Act 1845
Finance Act 1949
Sale of land by auction act 1867
EPC’s
conveyancing searches
property disclosures
How do you determine whether a property should be sold at auction?
What benefits would there be to your client to sell at auction rather than on the open market?
- Competitive bidding
- quick completion period
How do you ascertain the legal owner of a property when representing them at auction?
Check the title deeds & AML
When is an auction sale legally binding?
at the fall of the hammer
What money laundering risks are you exposed to during an auction?
What due diligence checks can be undertaken to reduce money laundering risks?
AML checks
What are the advantages of buying/selling at auction?
quick exchange period
seller - competitive bidding - no chain
buyer - may get it cheap if no one else interested & past reserve - no chain - can see the legal pack prior to auction less risk
What are the disadvantages to selling by auction?
buyer - compeititive bidding
seller - can’t choose who buys it
What are the RICS common auction conditions?
are a set of conditions for use in sale and purchase contracts where the sale is by auction.
When were the RICS common auction conditions last updated?
July 2024 7th edition
What is the aim of the common auction conditions?
establish consistent practices across the real esate auction indsutry
Tell me about one of the Common Auction Conditions?
the buyer buys with full knowledge of the documents whether or not they have read them all
Talk me through the RICS Practice information auctioneers selling real estate 7th edition
the document is a professional standard and sets out the principles and best practice for auctioneers that are selling real estate
What are the key principles of the RICS Practice Information Auctioneers Selling Real Estate 7th edition?
Conduct - be fair professional
Client Terms clear and fair ToE
Client requests (explanation of why an auctioneer cant do certain things)
buyer information (process must be explained)
addendums must be announced
incorporates the common auction conditions
Document now a professional standards
How do you find out about an auction property?
- Property portals
- auction houses
- agent advertisement
What is/are an imprortant notice to bidders/memorandum of sale/general conditions of sale?
A legal document setting out the terms of a sale
What would the legal pack contain?
Draft Memorandum or contract
condition of sale
searches
title plan
deeds
charges
What might be a special condition of a sale?
Selling without vacant possesion
What is a guide price?
a starting point for bidding that indicates a sellers minimum expectations and properties value
What is a reserve price?
A sellers minimum sale price
Which out of reserve and guide is confidential?
reserve
How do reserve and guide differ?
By no more than 10%, one is confidential and is a clients minimum price, other is a guide of such
What is an addendum?
ammendment of addition to the conditions/legal pack
What fees are typical of an auctioneer?
entry fee & buyers premium
commission
VAT
marketing budget
Can you sell a property before or after an auction
yes
What deposit is typically payable and when?
10% at the fall of the hammer
How can you bid at auction?
online
in person
via telephone
What is a proxy bid?
a maximum bid prior to auction that the auctioneer can bid on your behalf
When is insurance required in relaition to an auction purchase?
at the fall of the hammer
Is VAT payable on auction properties?
it can be
What are the EPC requirements at auction?
a legal requirement to provide one to buyers, unless exempt. must have been done in last 10 yrs
What does the Sale of land by auction act 1867 say?
Highest bona fide bidder is the purchaser
Auctioneer can bid up to reserve
Do you have to check anything in relation to an auction venue?
- owner of venue is agrees to hold auction
- there is no prohibition against it
- size of venue can accomodate anticipated number of bidders
How are arrears dealt with in relation to auction properties?
in the sale conditions
What should be included in auction particulars?
- informaiton about property
- solicitor information
- auctioneer information
- date, time location of auction
- where legal pack is obtainable from
What is the power to sell?
the process of selling a property
What are the requirements around the Aucctions (bidding agreements) Act 1927/1969?
- illegal for a dealer to offer an inducement to abstain from bidding
- a copy of the act must be on display on the day of sale
Talk me through the auctioneers act 1845.
required auctioneers to display their name and address in a prominent location before during and after the sale. the act has been repealed except this clause
What do you understand by the 2014 Advertising Standards Authority ruling regarding guide princes?
requires a definition of a guide price in all media advertising and its distinction between a reserve
What subsequent advice was issued by the committee of advertising practice in july 2014?
How does the online auction process work?
similar to in person but bidder can bid from home. bidders must register etc, then bids are placed on the online system and updated duuring live bidding
What does the future of auctioneering look like?
more online
increased number
