BUYING PROPERTY AT AUCTION

Forget any apprehensions you have about auctions being overly competitive or intimidating. With Whoobid, you're in good hands. We’re here to guide you through every step of the process, offering support and advice whether you're exploring pre-auction offers or engaging in the auction itself. Our approach ensures you can participate in a way that suits you best.

Whether you're looking for your next home or scouting for your next investment, we've got you covered. And with our modern method of auction, we've broken down barriers, opening auctions up to both cash and mortgage buyers.

Unlike some other property auction companies, we run bespoke auctions catering to each property’s needs. This means that our auction catalogue is constantly changing as we sell properties and bring on new ones. The best way to stay ahead of the game and not miss out on any property deals is to sign up to our Weekly Newsletter.

What is the Method of Auction?

Here at Whoobid we have two different methods of auction the Traditional Method and the Modern Method. Both methods are an innovative alternative to the standard private treaty method looking to make property sales faster, more secure and more transparent for both buyer and seller. It’s important that you note which method of Auction the property you are interested in buying is as they have slightly different terms and timescales. You can learn more about the different methods below or download our buyers guide.

THE AUCTION PACK

For every auction property there will be an Auction Pack produced by the seller's legal representatives. The Auction Pack contains the information and legal documents that are necessary for you to make an informed offer or a bid on the property.

We highly recommend that you seek Legal Advice and run the pack by your solicitor.

MAKING A SECURE OFFER

You don’t need to wait until auction day to secure your property purchase. Many of our sellers have chosen the auction process for its speed and security. These terms apply to any offers made outside of the live event too. We put forward any pre-auction offers for the seller to consider, and if an offer is accepted, the property will sell just as it would if the hammer had fallen. This allows you to secure the property before an auction if you find the competitive bidding process stressful, it also allows you to offer with some wiggle room in amending the auction terms if for instance you needed slightly longer timescales.

Also, unlike in a standard private treaty sale, if you make an offer that the seller accepts it cannot be gazumped. Once you’ve paid your auction fees the process is sealed from that point on.

THE TRADITIONAL METHOD

The Traditional Method is the most common type of auction you’ll come across; it is used to sell everything from collectibles to cars. How it works for property is much the same as with anything else. Buyers will compete to outbid each other. At the end of the auction if the seller’s reserve has been exceeded then the highest bidder has won the property. The property instantly exchanges, and a completion date is set within 28 days. This method of auction is the fastest and is generally only advised for cash buyers as the process leaves minimal time to organise a mortgage or other form of financing.

The bids that you place are legally binding and if you are the successful bidder at the end of the auction, the auction fees are due immediately, and contracts are exchanged. You will then have 28 days to complete the sale.

Please Note: The auction fees are payable in excess of the property price, and we advise that you take these into consideration when placing a bid.

THE MODERN METHOD

The Modern Method of auction acts as a hybrid process between the traditional method of auction and the standard private treaty method. The modern method combines the speed and security benefits of the auction process whilst still being open to anyone looking to purchase with a mortgage. The Modern Method allows purchasers to win a 28-day exclusivity period to purchase a property at the winning price. This exclusivity period gives the buyer the necessary time to organise financing for the property, whilst not tying themselves in to buying the property if the financing doesn’t work out.

The bids that you place are legally binding and if you are the successful bidder at the end of the auction, the auction fees are due immediately. You will then have 28 days to reach an exchange of contracts. Once contracts are exchanged, you will then have 28 days to complete the sale.

Please Note: The auction fees are payable in excess of the property price, and we advise that you take these into consideration when placing a bid.

BIDDING ONLINE

In order to bid on a Whoobid auction you must first Register An Account. From your account page you will then need to complete the following tabs:

• Identity Verification You must supply a Certified ID Document and a Certified Proof of Address for all buyers.


• Payment Cards You need to supply a payment card so that you can pay the auction fees and have the property reserved to you as soon as the hammer falls.


• Solicitor Details It is important that you notify your solicitor that you are aiming to purchase a property via auction and supply their correct details. It is advised that you seek their advice on the auction pack prior to making any bid.

Bidding only commences once the auction starts at its specified date and time. The bidding window will remain open for a minimum of three hours. Any bids made in the final minute of the countdown will extend the timer by a further three minutes. These extensions will occur indefinitely until the final minute of the auction plays out with no further bids being made. Bidding can only occur in £500 increments. When you enter a maximum bid, your bid will automatically be increased from the previous bid by £500 until you hit your maximum bid. If you are outbid, you can add a new maximum bid. Every seller will have set a reserve price prior to the auction. This is the minimum price that the property can sell for at the live auction event. If the bidding doesn’t meet or exceed this reserve price during the auction, the property will not have sold.

The auction will then be marked as CLOSED.

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