Barnard Marcus Property Auction
Why Barnard Marcus?
The Skipton Building Society wholly owns the sole significant London auctioneer, with backing from 1250 branches.
UK’s Premier Residential Auctioneers
Barnard Marcus, part of Sequence (UK), operates regional Auction Rooms in Norwich, Southampton, Leeds and Derby, offering more than 3,000 lots per year, amassing a total of £340m for their customers.
Barnard Marcus, a part of The Connells Group – a leading UK property services organisation renowned for its size, success and diversity – is backed by them.
The group offers an extensive array of services, such as Property Rentals and Management, Land and Planning guidance, Corporate Asset Management, Mortgage and Legal help, as well as a considerable Survey and Valuation capacity.
Barnard Marcus boasts a broad network of 595 stores throughout England, Wales, and Scotland, allowing them to take advantage of both nationwide coverage and local market know-how. They continually strive for a wide range of buying chances for purchasers and maximum value for vendors.
Barnard Marcus, are committed to providing the best service through their experience and consistency. They aim to recruit and maintain the most competent property experts, with a reputable background and an established history. Their key personnel have a combined 250+ years of sector knowledge.
Barnard Marcus, the top London-based provider of residential auction lots to the British market, provides a custom-made service for experienced property investors, private and corporate vendors, and those just starting in the property investment business.
Key Differences Of Selling At Auction
What makes auctions different from other methods, and what are the benefits and drawbacks?
Auctions are a convenient and speedy way to purchase and sell a variety of items, not just property or antiques. Prices are established on the day of the sale, based on the demand.
No minimum price is set, so there’s no guarantee of selling below the minimum, but there’s no maximum either. Demand on the day will determine the cost.
The key motivation for selling at auction is likely not desperation, but rather a firm desire to sell and obtain the best possible price within a set timeframe.
On average, it takes around 4 weeks for instruction to exchange contracts, which is less than half of the usual UK period when using traditional Estate Agencies.
When selling at auction, you are likely to be “chain free” and not need to link a sale to a simultaneous purchase. Contracts are exchanged on the spot if there is a successful bidder.
You will be aware of the deadline both you as the seller and the buyer have agreed to. Therefore, if you are residing in the dwelling, you will need to guarantee to leave by the due date. The buyer, is also obliged, they pay the deposit right away and have no option to withdraw.
Determining The Value Of Your Property
Once you’ve chosen to sell, you’ll need a full auction valuation to determine the price you can anticipate receiving.
Careful selection of an auctioneer is key to getting the best price. Consider the potential timescales and costs that may be involved.
Tempting though it may be to select the auctioneer who gives the most generous guide price, if your property doesn’t manage to sell, you could be left with legal and auction fees, as well as a still unsold property.
It may be attractive to employ an auctioneer with the lowest fees, but will they be able to draw out the most attention and get the best results for your property?
At Barnard Marcus, we take pride in offering great value for money, always striving to get the best price for our sellers.
Many are hesitant to sell their property at an auction out of fear of not getting a good return. Barnard Marcus will guarantee a reserve price, which is the least amount of money you are willing to accept for the property. This is usually established when the property is put up for sale. This ensures that the reserve price is not set too low or too high, and it will remain confidential.
Barnard Marcus will also provide you with a guide price for marketing the property, giving interested buyers an indication of the anticipated reserve price range.
You must sign up for your property roughly six weeks before the auction to guarantee it is listed in the catalogue and give the auctioneer sufficient timeframe to promote it.
An experienced auctioneer will promote your property online, through local and national media, as well as distribute the catalogue to prospective purchasers and investors – whilst keeping you informed of the response. Additionally, you’ll need to appoint a solicitor to assist with drafting the sale agreement and related legal documents.
An experienced auctioneer will collaborate closely with your legal representative to guarantee that all the necessary preparations are made for the auction.
Marketing Your Property
Auctioning off your property increases the range of potential buyers, including those looking to make it their home, investors, developers, and property agents.
Auctioning your property could be the ideal solution, rather than a last resort. Barnard Marcus regularly exceeds the estate agent’s initial asking price through auctions.
Barnard Marcus has a mailing list containing 130,000 entries, which is 500 times bigger than the average Estate Agent’s!
At the start of the marketing period, Barnard Marcus will create a printed catalogue with details of all the properties up for auction. They will arrange block or open house viewings on set dates throughout the two-and-a-half weeks of the marketing period.
The auctioneer may get bids on your property before the auction. These will be sent to you right away for you to contemplate. Sometimes these bids may be unreasonable, and a competent auctioneer will suggest acceptance only when the offer is sensible and not likely to be exceeded at auction. If your property is sold before the auction, it will be taken off the market when contracts are exchanged.
Barnard Marcus will supply regular reports on the level of interest, including enquiries, viewings, offers and the number of people who have reviewed the legal information. This assists us in constructing an estimate of the bidding on auction day.
The Auction Day
The most exhilarating aspect of buying or selling a home at auction is indisputably this one – but make sure you are ready for the day.
The culminating event of the process is auction day. A vast number of people flock to the auctions in London, where they can bid in person, by phone, or submit proxy bids if they are unable to attend. Barnard Marcus typically has more than 200 lots in each sale, so it can be a lengthy affair.
Around 30 lots are sold per hour, typically from 10 am to 5 pm. If you wish to witness your property being auctioned, you can come to the event or watch the stream, hosted by our partner organisation The Essential Information Group, online for convenience.
Once the highest bid has been accepted, the contracts are exchanged and Barnard Marcus leads the buyer to the designated contract signing area. Here, Barnard Marcus completes the paperwork and collects the deposit from the buyer.
Barnard Marcus will typically transmit the deposit along with the documents to your lawyers the next day to enable them to handle the concluding legal facets of the deal until completion.
Preparing To Buy
People purchase at auctions for many motives; they could be aiming to acquire something quickly, seeking a foreclosed property, a parcel of land to construct on, or simply wanting to purchase without fear of being outbid.
Auction bidders may desire something out of the ordinary, a type of property not typically sold by a property agent. Buy-to-let investors also take part in auctions, since they have an extensive selection of investment chances and can buy quickly. It does not matter why you are buying at an auction, being prepared is the key to success.
Contact the auction centre before buying to make sure the desired item is still available.
What Do I Need To Bring?
Buyers must show two forms of ID. Read the ‘Protecting you’ guide for more info. You should also bring a copy of the auction catalogue, plus the solicitor’s details and a deposit. If you win, you will need to pay the deposit and the contract documentation charge when the hammer falls and contracts are exchanged.
It is wise to make sure your building’s insurance begins when the sale is finalized. In some cases with leasehold properties, this might not be required, but your lawyer can provide guidance.
Your Deposit
Payment can be made by debit card, online transfer or other electronic means. Typically, 10% of the bid price (minimum £2,000) is required as a deposit, but this may change according to the special conditions of sale in the legal pack; so it is essential to check this before bidding.
Bidding
By law, registration and a bidding paddle are required before participating in the auctions. Before the start of the bidding, the auctioneer will ensure that every attendee has a copy of the ‘Addendum or Announcement’ sheet and will communicate any changes to the catalogue information.
Set the highest price you can afford before bidding begins. Potential buyers will raise their hand or bidding paddle to make their offers clear. Don’t worry; you won’t buy a property by mistake by simply scratching your head!
The auctioneer will alert that the final bid is about to be accepted by saying “going for the first time, the second time, the third and final time” and then striking the gavel to end the auction.
If the reserve price is not met, the property will be withdrawn from the auction and the auctioneer will invite interested bidders to speak to the seller’s negotiator. An agreement may be reached between the seller and the buyer for a sale to be completed.
If you are the triumphant purchaser, you should inform your lawyer of your acquisition and provide them with the contract you have signed (Barnard Marcus can forward this to you if you choose).
Your solicitor will coordinate with the vendor’s representative and take care of the last steps before completion. Although 28 days is the usual duration, certain terms of sale can make it happen sooner (or later), so make sure you check the completion date before bidding to avoid being unprepared.
Have the balance of the funds needed for your purchase ready for your solicitor promptly to avoid any penalties. Barnard Marcus will not be able to grant you the keys to the property until completion has occurred. If you need access to a survey, contact us immediately to see if it can be organized.
Finding The Right Property
Before going to an auction for a property, one must do a great deal of preparation. Make a list of what you desire: such as location, detached/semi-detached, number of bedrooms, cost, parking spaces, etc. Once you have a definite idea of the home you want to buy, start your hunt.
Offers Before The Auction
You can make an offer on a property before the auction which, if it meets the seller’s criteria, will be sent to them for consideration. Generally, to get the offer considered, you must be able to pay the deposit and exchange contracts without delay.
If this is approved, your purchase will proceed, and the property will be taken off the auction only when contracts are exchanged.
Registering For The Online Auctions
Ensure you register with Barnard Marcus before the online registration deadline. Barnard Marcus must still adhere to anti-money laundering rules, so as they cannot meet you in person, they must use online checks to comply with the law.
Please ensure you review the Barnard Marcus website for instructions on signing up, as your participation is required.
Upon registering with Barnard Marcus, you will need to complete a payment page. SagePay is used for this process and can place a hold on the funds until the auction is over. Please be aware that this could potentially cause your account to go into overdraft if there is not enough credit available.
The payment section of the registration can be done up to six days before the auction. Don’t fret, Barnard Marcus will remind you to complete this section if you have registered beforehand.
For each lot, Barnard Marcus requires a £6,250 security deposit, comprising a £5,000 deposit and a £1,250 (inc. VAT) contract documentation charge. You may bid on any lot but, if you want to purchase more than one, you will need to make payment while the auction is in progress or complete multiple payment facilities.
If you have queries about registering or the auction in general, my team can assist – so don’t hesitate to call us or have a look at the guides on the Barnard Marcus website.
Before The Auction
Ensure you possess a duplicate of the auction brochure, as this constitutes part of the contractual agreement between you and the vendor.
Examine the legal paperwork, including the Special Conditions of sale, online before the auction and in the auction room on the day of the auction to avoid surprises.
Consult a lawyer regarding the acquisition to sidestep any juridical issues. As with any property you want to buy, arrange a viewing of the property.
Ensure that you have organized a survey. If you are taking out a mortgage to finance the acquisition, this is essential. If you are paying for the property in cash, you should ensure that it is structurally sound.
If you’re taking out a loan to buy the property, you should have a formal offer secured before attending the auction.
A deposit, usually 10% of the purchase price, is required and must be paid at the auction after the property has been purchased. In some cases, the deposit may be higher, so take care to review the Special Conditions of Sale.