Property Forum: Auction Questions
This question came up recently on a property forum site where EIG contribute information and answer property auction related queries. Although it relates to a fairly uncommon scenario where a bidder would be interested in purchasing just one of two very similar lots being sold consecutively in an auction room, the principle of knowing when you've definitely bought a property at auction is a valuable one.
I'm interested in buying 1 property from 2 consecutive lots in the same auction, could I accidentally buy both? I need to know the result of the 1st lot before bidding on the 2nd lot!
EIG Managing Director, David Sandeman responded to the online question:
The answer is ...
As the other responses to your questions have advised - the auctioneer will always, at the end of every single lot they offer, state whether it has sold.
If it did for how much, or whether it failed to meet reserve and is still available, so that will be made very clear to you.
Understanding the Guide Price
Whilst you may understand how the guide and reserve price work do bear in mind that the guide is only an indication as to where the reserve is currently set and not necessarily what the auctioneer expects to sell it for.
Many people going to auctions think the guide price is what the auctioneer expects to sell it for and it is not, it is just an indication of where the reserve is, which is the minimum price of where he is allowed to sell it for. In order to ascertain what it might sell it for looking at past auctions lots of a similar nature and type is the best way to ascertain the value and if you want to have a look around our site: eigpropertyauctions which has information of over 800,000 lots sold at auction do contact me.
# Auction Top Tip
If a property doesn’t sell at auction it’s always a good idea to go up to the auctioneer immediately after it has been offered to see whether you can do a deal there and then. If you can agree a price with the auctioneer and vendor you’ll be signing a contract and exchanging contracts on the day in the auction room and that will be deemed to be a sold post lot.
Good luck in your auction hunting and do call us if you would like to have a look around our site.
David Sandeman, EIG Managing Director
By Beth Fox