Auction House London Explores the New RICS Guide for Property Auctions
A new comprehensive and impartial guide to buying and selling property via auction has been published by the Royal Institution of Chartered Surveyors (RICS). The guide aims to help investors, owner occupiers and sellers make fully informed decisions during the buying or selling process of an auction.
The guide was created by the RICS Real Estate Auction Group as reported in Property Investor Today and a new version has now been updated with more comprehensive guidance due to the exponential growth of the property auction sector in recent years. With more and more online auction’s appearing, RICS believes it is necessary to educate consumers so both buyers and sellers know what to expect from professional auctioneers.
What sellers should expect from auctioneers?
The new RICS guide includes advice on how to select an auction house as someone with property to sell. The guide maps out all the key terms of appointment, so sellers fully understand them and it also explains the importance of accurate sales particulars and how to understand the often-complex legal packs.
What buyers should expect from auctioneers?
The guide also explains how buyers should prepare for taking part in an auction. RICS explains the importance of researching all the information provided about the property that auction buyers are interested in and the necessity of obtaining professional advice from property auction experts.
The guide also places an enhanced emphasis on the need for buyers to stay in close contact with their chosen auctioneer, which they recommend buyers do right up until the property is offered up for bidding. Auction House London supports this philosophy, which is why clients have always been welcome to have the team’s mobile phone numbers so they can remain in contact throughout the marketing window to discuss the properties their clients may be interested in.
New RICS guide describes the advantages of selling at auction
The benefits of selling property at auction are also highlighted by RICS in their new guide. They mention the certainty of buying a property at auction as the properties are not sold ‘subject to contract’ in the same way a traditional sale through an estate agency works. With an auction, the successful bidder is legally obliged to complete the sale at the fall of the gavel when their bid is deemed successful.
The certain nature of auctions also speeds up the whole property purchasing process considerably. Auction sales move fast compared to the traditional method and RICS says that completion usually takes place between four and six weeks after the auction has ended with a successful bid.
Online auctioneers also provide good marketing exposure for sellers. The auctioneers will market their properties on their website, utilising email marketing, Auction House London has an extensive database of potential buyers from previous sales whom they will talk to through email campaigns and social media. This strategy can quickly identify buyers interested in a certain type of property or geographical location.
RICS guide advice for choosing an auctioneer
RICS advises consumers to only appoint auctioneers who are members of a professional body such as themselves as this protects sellers and buyers from a regulatory perspective. The regulation consists of strict rules of conduct that protect both buyers and sellers, ensuring for example that an auctioneer holds the appropriate professional indemnity insurance.
Auctioneers that are not regulated by such a professional body as RICS may not adhere to the strict rules of conduct, or they may not hold the appropriate professional indemnity insurance. So always make sure to choose an auctioneer who can demonstrate that they have the correct credentials.
Achieving the best result from an auction
The Head of Professional Practice at RICS, Paul Bagust, spoke about the importance of the new guide and how he hopes it will help consumers achieve the best result from an auction.
Paul explained:
“As the property market continues to evolve, auctions offer a transparent, secure and swift process that benefits both buyers and sellers, particularly in a dynamic market environment.
RICS is the largest organisation for professionals working in land, property and construction globally and our members can advise you on a number of aspects of your transaction including valuation, home surveying, property management and investment as well as advising on how to achieve the best result from an auction.
We hope this new guide will help to educate consumers on the benefits and possible risks of auctions and how to navigate them for the best result.”
Choosing a good auctioneer
The new RICS guide should go a long way to helping buyers and sellers to choose the right auctioneer. At Auction House London, we have a dedicated sales team backed up by a large support team of experienced colleagues working on each property. They provide the highest level of personal service to their clients with continual updates on the interest levels on properties being sold and potentially purchased, so buyers and sellers alike will know their options at every step of the process. Auction House London operates under the terms of the Common Auction Conditions (Edition 4) reproduced with the consent of RICS.
Auction House London welcomes the new RICS guide for buying and selling property at auction and if you have any questions about the new guide then contact our team of auction professionals. If you’re already looking to buy residential or commercial property at auction, browse through the lots already listed in our forthcoming auction. Or, if you have property you want to sell, why not see how much it could be worth in an auction with a free valuation by Auction House London.