By Peter Hornor, auctioneer and chartered surveyor with Brown & Co in Norwich
The most important thing first of all is to check with any auctioneer that your property is suitable for sale by auction. The auctioneer will advise about saleability and whether or not they would recommend the process and then there is the question of guide prices and the reserve price to be agreed. It is a funny thing, but you also need to check about the date of the auction because it needs to fit in with your own objectives and requirements and tax years can be very relevant. You also need to ask for the auctioneers terms of appointment and engagement. As Chartered Surveyors and Auctioneers we have
to follow a number of statutory regulations including the Estate Agents Act 1979 together with the Property Misrepresentations Act. There are also the RICS Rules of Conduct to comply with.
Terms of appointment will include the commission payable, any extra charges that are payable up front for marketing and in addition the right of the auctioneer to instruct the solicitor to prepare the legal pack, act on behalf of their client on the day of the sale and sell the property at or above the reserve price. Discussion at this stage will allow the auctioneer to talk about how they can help and the service they will provide, to include preparation of auction catalogue, erection of sale boards, advertising and viewings and how to deal with things if anything remains unsold after the sale. The RICS have recently produced the 3rd Edition of the Common Auction Conditions which we incorporate in all our catalogues and set everything out in some detail. In most cases an auctioneer will be the sole agent and buyers and vendors alike will need to be aware of the need to comply with anti-money laundering regulations as well. Once all of this has been dealt with then you can move forward and as we have said before your agent can then get on with the important job of obtaining the best possible price they can.
Peter’s on 01603 598238