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Posted by Steven_Coogan on February 14, 2016
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What’s it all about?

Online property auction coming soon at Madison Carter. Buying or selling a property at Madison Carter couldn’t be easier, the process should be uncomplicated, exciting and stress free. That’s why we use online property auction, a secure and user-friendly online property auction platform that allows buyers and sellers to exchange at the end of the auction period.

Benefits for Buyer and Seller

  • More clarity
  • No sale falls through
  • Sales go through faster
  • Auctions are 1, 7, 14, or 30 day timer
  • No delay between offer and exchange Cheaper
  • You buy or sell at an auction online with us any day of the year.

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A Step by Step Guide to Selling your Property

1 Set the length of the auction

You can choose whether to have a 1, 7, 14 or 30 day auction period. Generally, we believe that the longer the auction period, the higher the number of bids and the greater the chance of achieving the maximum market value for the property. However, we appreciate that time is of the essence, so you may prefer a shorter auction period, which means a quicker exchange date.

2 Specify a reserve price

A reserve is the minimum amount that you would be willing to sell your property for. Try and have a realistic number in mind. We can help you with this.

3 Sort out a legal documents pack

A legal pack must be uploaded at least 7 days prior to the end of the auction period. We can put you in touch with our auction specialist legal partners if you’d like us to arrange a legal pack for you.

You may instruct your own solicitors to arrange a legal pack at your own cost if you so wish.

4 Sit back and watch the bids come in! This is the fun part!

Bids are placed in minimum increments according the value of the property. In addition, if a bid is placed in the final 5 minutes of the auction, the timer will extend by 15 minutes to allow everyone a fair chance to bid.

5 Exchange

Exchange occurs at the end of the auction. This means that if the reserve is met or exceeded and the auction timer reaches zero, the successful bidder is legally obliged to pay the purchase price and you will be legally obliged to sell the property. To ensure that the successful bidder proceeds, the buyer is automatically charged a holding deposit, which is held in a secure client account, pursuant to the terms of a holding deposit agreement.

You will need to contact your solicitor to sign and submit sale documents to the buyer’s solicitor within 5 business days of the end of the auction (we’ll also get in touch with your solicitor to help things along).

Remember that if there is a successful bid, you will be legally obliged to sell the property for the full amount of the purchase price.

Frequently asked questions

Q Can I withdraw my property from the auction?

Yes, although you may be charged a withdrawal fee. We understand that you might have to withdraw your property, so we reserve the right to waive this fee in extenuating circumstances. Note however that if the auction period has ended and you receive a bid that is in excess of your reserve, you will be legally obliged to complete the sale of the property. So if you do wish to withdraw your property, we would advise you do so sooner rather than later!

Q How do you vet bidders?

Identity and anti-money laundering checks are carried out on all bidders before they place a bid. This process is carried out through LexisNexis Risk Solutions.

Before placing a bid, all bidders must also input details of their solicitor and also their payment details. If a bidder is successful, they are automatically charged a holding deposit, which is held as agent for you (less any admin fees payable and subject to any online auction listing terms and conditions). This amount will be set off against the amount of the 10% deposit, which is payable by the buyer within 5 business days of the end of the auction.

Q How will my property be advertised?

Your property will continue to be marketed on all the major portals, including Rightmove. We will also market your property on our website and with our network of buyers, which includes overseas buyers, investors and cash buyers.

Q When can I expect to receive the deposit after the auction?

The holding deposit (being £2,600 less any admin fees) will, subject to the online auction listing terms and conditions, be transferred to your solicitor once the remainder of the 10% of the deposit is transferred directly from the buyer’s solicitor to your solicitor. A successful bidder has 5 business days to transfer the full deposit (which is 10% of the winning bid amount).

In the unlikely event that a bidder fails to transfer the full deposit amount, we will still transfer the holding deposit to your solicitor for your account (less any admin fees), subject to the online auction listing terms and conditions).

Legal Pack

This comprehensive legal pack will include:

  • Conveyancing searches
  • Local authority
  • Water/Drainage
  • Title deeds
  • Leases
  • Office copy entries
  • Special conditions of sale

Bidding with Madison Carter couldn’t be easier…

Whether you are buying an investment property or your dream home, we believe that the process should be exciting and stress free.

That’s why Madison Carter is fast, simple and most importantly secure.

With Madison Carter, a sale is effective immediately at the end of the auction. If you are the successful bidder, you will be legally obliged to complete the sale of the property. We operate in much the same way as if you were bidding in a live auction room, but we’re online.


A Step by Step Guide to Bidding:

1 Registration

Every bidder must be registered with Madison Carter. We are committed to carrying out identity and anti money laundering checks and so in order to bid, you will need to be authorised. Don’t worry though – this process shouldn’t take too long – we aim to process every registration within 24 hours.

In the meantime, the fun doesn’t stop! Whilst we are approving your registration, you will still be able to search, download legal documents, arrange site viewings and contact both the estate agent and solicitors if you have queries on the property.

To register, simply click the link in the top right hand corner of the page and complete the online form.

2 Place your Bid

Once you are fully authorised (we will send you an email to let you know when this happens!), you will be free to place a bid.

To place a bid, you will have to follow a few steps, which we have designed to be as user friendly as possible:

  1. Insert payment details – If you are the successful bidder, we will charge you £5,000. Of this amount, £2,600 is to be held in a secure client account as agent for the Seller and will be set off against the final purchase price. The remaining £2,400 (incl VAT) is payable as a non-refundable buyer fee. We will only contact your solicitor/conveyancer if you are the successful bidder.
  2. You will then have 5 business days to transfer the remainder of deposit (being 10% of the purchase price less £2,600) to the seller’s solicitor and submit all signed documents.
3 Confirm terms and submit your bid!

We encourage responsible bidding. Remember that if you are the successful bidder, you will be legally obliged to pay the full amount of the purchase price.

With that in mind, we strongly recommend that you have funds in place before placing your bid and only bid up to your limit.

Frequently asked questions

Q How long does each auction last?

The seller has the freedom to choose, and may select a 1, 7, 14 or 30 day auction period. A countdown timer is attached to each property, so bidders can see how long is left of the auction. If a bid is placed in the final 5 minutes of the auction period, the timer will automatically extend by 15 minutes, giving everyone the chance to place a bid. The auction will end when the countdown hits zero.

Q What is the difference between a guide price and reserve price?

The guide price amount specified is an indication of each seller’s minimum expectation. It is not necessarily the amount at which the property will sell. Each property will be offered subject to a reserve (a figure below which the property will not be sold) which we expect will be set no more than 10% above the guide price amount. If the reserve price is not achieved, then the property will not be sold. The reserve price is almost always confidential.

Q I’ve placed my bid. Can I bid again if my bid is exceeded?

Of course! You are free to bid as many times as you feel comfortable. You will have to go through the bidding steps, so make sure you place that bid in time! To make life that little bit easier, we’ll pre-complete the fields in the steps if you’ve already bid before, so you can place future bids in just 6 clicks!

Q Are there minimum bidding increments?

Yes. The minimum amount by which bids may be increased are as follows:

Starting price of property Minimum bid increment
£0 – £50,000 £500
£50,001 – £250,000 £1,000
£250,001 – £500,000 £2,000
£500,001 – £1m £5,000
£1m+ £10,000

In the final 24 hours – these increments are halved.

Remember, if a bid is placed in the final 5 minutes, the timer will extend by 15 minutes, so we advise bidding as soon as you can.

Q Can I download and print legal documents?

Yes, you are free to download and print the legal documents. We recommend you use a solicitor or conveyancer to review the legal documents, but that is entirely your decision.

Q How do I know the seller owns the property?

The legal pack should include an official copy from the Land Registry. This document will specify who owns the property and whether there are any charges or mortgages that need to be cleared. Your solicitor can assist you with this information.

Q I’d like to arrange a viewing – how do I do this?

Arranging a viewing couldn’t be easier. Simply select which time is most convenient for you from the drop down box on the individual property page, click submit and turn up at the property at your chosen time.

Q I’ve won the auction. What’s next?

Firstly, congratulations! We will contact you if you are the successful bidder and will charge you £5,000, of which, £2,600 is held in a secure client account as agent for the seller as a holding deposit. You then have 5 business days to:

  1. pay the remainder of 10% of the purchase price; and
  2. submit all signed sale documentation.

You should contact your solicitor immediately after winning the bid (we will also contact you and your solicitor).

If you do not carry out these steps within the 5 business days, you may forfeit the entire amount of the £5,000 holding deposit.

Q What are the fees?

A fee of £2,400 (incl VAT) is payable immediately at the end of the auction period. This amount will be taken from the £5,000 that is paid at the end of the auction. Therefore, you will be required to pay the purchase price less £2,600 to the Seller.

Q Are there any other fees to pay?

You will be required to pay for the costs of the seller’s legal pack.This is because the seller is required to arrange for a legal pack to be prepared up front, which contains a number of searches and information that is usually carried out by a buyer in a conventional property purchase. Asking for the buyer to reimburse the seller’s legal fees is commonplace in auction sales.

We strongly advise you check the terms of the sale contract before you place a bid.

Also be aware that for some properties, you may be required to pay VAT on top of the purchase price. This will generally be for commercial properties and the legal pack and/or the sale memorandum will make reference to this.

A Step by Step Guide to Selling your Property

1 Set the length of the auction

You can choose whether to have a 1, 7, 14 or 30 day auction period. Generally, we believe that the longer the auction period, the higher the number of bids and the greater the chance of achieving the maximum market value for the property. However, we appreciate that time is of the essence, so you may prefer a shorter auction period, which means a quicker exchange date.

2 Specify a reserve price

A reserve is the minimum amount that you would be willing to sell your property for. Try and have a realistic number in mind. We can help you with this.

3 Sort out a legal documents pack

A legal pack must be uploaded at least 7 days prior to the end of the auction period. We can put you in touch with our auction specialist legal partners if you’d like us to arrange a legal pack for you.

You may instruct your own solicitors to arrange a legal pack at your own cost if you so wish.

4 Sit back and watch the bids come in! This is the fun part!

Bids are placed in minimum increments according the value of the property. In addition, if a bid is placed in the final 5 minutes of the auction, the timer will extend by 15 minutes to allow everyone a fair chance to bid.

5 Exchange

Exchange occurs at the end of the auction. This means that if the reserve is met or exceeded and the auction timer reaches zero, the successful bidder is legally obliged to pay the purchase price and you will be legally obliged to sell the property. To ensure that the successful bidder proceeds, the buyer is automatically charged a holding deposit, which is held in a secure client account, pursuant to the terms of a holding deposit agreement.

You will need to contact your solicitor to sign and submit sale documents to the buyer’s solicitor within 5 business days of the end of the auction (we’ll also get in touch with your solicitor to help things along).

Remember that if there is a successful bid, you will be legally obliged to sell the property for the full amount of the purchase price.

Frequently asked questions

Q Can I withdraw my property from the auction?

Yes, although you may be charged a withdrawal fee. We understand that you might have to withdraw your property, so we reserve the right to waive this fee in extenuating circumstances. Note however that if the auction period has ended and you receive a bid that is in excess of your reserve, you will be legally obliged to complete the sale of the property. So if you do wish to withdraw your property, we would advise you do so sooner rather than later!

Q How do you vet bidders?

Identity and anti-money laundering checks are carried out on all bidders before they place a bid. This process is carried out through LexisNexis Risk Solutions.

Before placing a bid, all bidders must also input details of their solicitor and also their payment details. If a bidder is successful, they are automatically charged a holding deposit, which is held as agent for you (less any admin fees payable and subject to any online auction listing terms and conditions). This amount will be set off against the amount of the 10% deposit, which is payable by the buyer within 5 business days of the end of the auction.

Q How will my property be advertised?

Your property will continue to be marketed on all the major portals, including Rightmove. We will also market your property on our website and with our network of buyers, which includes overseas buyers, investors and cash buyers.

Q When can I expect to receive the deposit after the auction?

The holding deposit (being £2,600 less any admin fees) will, subject to the online auction listing terms and conditions, be transferred to your solicitor once the remainder of the 10% of the deposit is transferred directly from the buyer’s solicitor to your solicitor. A successful bidder has 5 business days to transfer the full deposit (which is 10% of the winning bid amount).

In the unlikely event that a bidder fails to transfer the full deposit amount, we will still transfer the holding deposit to your solicitor for your account (less any admin fees), subject to the online auction listing terms and conditions).

 

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