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Published on : April 20, 2020 18:57


Online Auctions Buying Guide | Unconditional Sale


Index:


INTRODUCING EDWARD MELLOR ONLINE AUCTIONS


Edward Mellor Online Auctions is a new, innovative and pioneering platform for buying and selling property.

It provides all the benefits synonymous with traditional auctions, including: speed and certainty of sale, transparency and zero risk of gazumping or double-selling, but with the added advantage of being able to bid pressure-free from the comfort of your own home or office via desktop, tablet or mobile phone.


REGISTRATION: A STRAIGHTFORWARD PROCESS FROM START TO FINISH



In order to bid at Edward Mellor Online Auctions, you will first need to create an account. This requires you to verify your email address, by clicking an activation link that we’ll send to you via email.

Once you’ve created an account you can ‘watch’ lots that you’re interested in (you’ll be kept up-to-date throughout the auction cycle), as well as gain access to the legal packs. In order to place a bid on a lot, you will need to complete the bidder registration steps, as detailed below.

Please note, the first time you register to bid you will also be asked to verify your mobile number and upload copies of your photo ID (e.g. driver’s license or passport) and recent proof of address (dated within the last 3 months). This is required so we can easily keep in touch and helps us confirm your identity in the event of you purchasing a lot.

You will also need to add your solicitor information on registration.


ACCEPT TERMS: ENSURE YOU READ, UNDERSTAND AND ACCEPT THE TERMS AND CONDITIONS



You will be asked to read and accept our Online Auction ‘Terms and Conditions’.

Additionally, there may be specific documentation relating to the sale of the property you’re registering to bid on. You will need to read and accept before you are able to bid.

Once accepted, you will receive a copy of the document(s) via email for your own records.

You should also ensure that you thoroughly read and understand the legal pack available online before continuing to purchase the property.


PAYMENTS EXPLAINED: HOW THE PAYMENT REGISTRATION WORKS



In order to bid in our online auction, you will need to purchase tokens at £5,000 per token. You will need one token for every property you wish to bid on.

You will need to have purchased enough tokens (no later than five minutes before the conclusion of the lot) to bid on every property you’re interested in.

For example, if you want to bid on lot 2, lot 5 and lot 27 you will require three tokens. Your initial deposit will be 3 x £5000 = £15,000. Should you only win one of the lots your remaining £10,000 will be refunded straight after the auction.

If you are planning on bidding on multiple properties, please make sure you buy the correct amount of tokens in the first instance.

Once you pass this stage, you can’t add further tokens through the auction platform.


BIDDER SECURITY: PURCHASING YOUR TOKENS



As mentioned above, in order to bid you will need to purchase tokens at £5,000 per token. For each lot in total, you will need to pay a minimum deposit of 10 % plus the buyer’s premium, less the token amount of £5,000.

For example, if you win the lot, your winning bid is £100,000 and the buyer’s premium is £2,000.  Here’s how the costs are broken down:

Your deposit = £10,000

Buyer’s premium = £2,000

Total = £12,000

Less the token amount =  £5,000

This leaves £7,000 left to pay. A member of the team will be in touch shortly after the auction to request these funds.  Please have a card with sufficient funds available to hand!

For more information about this process please read the detailed explanation at the end of this article.


AUCTIONEER REVIEW: FINAL STEP – AUCTIONEER REVIEW


Once you have completed the bidder registration steps, Edward Mellor will review your registration to bid.

We may contact you to obtain some additional information so that we can electronically verify your identity with a credit reference agency – this is a quick and simple process that leaves a ‘soft footprint’ and doesn’t affect your credit score.

You will be notified by email as soon as you have been approved to bid.


DUE DILIGENCE: RECOMMENDED DUE DILIGENCE BEFORE BIDDING


In general terms, you are strongly advised to view the property and take professional advice as to its condition and suitability.

You should also ensure that you thoroughly read and understand the legal pack and any other associated documentation available online, and take proper legal advice accordingly.

Finally, understand the contract you are entering into and the financial commitment that you will be liable for, should you be the successful purchaser.


BIDDING: STRESS-FREE BIDDING FROM THE COMFORT OF YOUR OWN HOME



When the auction opens, you will be able to place bids in line with the pre-determined bid increment levels, using the bid increase (+) and decrease (–) buttons provided. Every time you submit a bid you will be clearly shown whether your bid was successful, and a full list of all bids is displayed on-screen at all times.

Maximum (Proxy) Bids

You are not restricted to placing a bid at the minimum bid amount, but can instead increase your bid and place a maximum (proxy) bid in the system. By setting a maximum bid, the system will automatically bid on your behalf to maintain your position as the highest bidder, up to your maximum bid amount. If you are outbid, you will be notified via email so you can opt to increase your bid if you so choose.

Reserve Prices

Virtually every lot is sold subject to a reserve price (the minimum price that the auctioneer is authorised to sell for on the day). When you submit a maximum bid, the actual bid placed by the system will depend on whether the reserve price has been met, as defined below.

If your maximum bid is below the reserve price

– The system will place an immediate bid at your maximum bid amount.

If your maximum bid is at or above the reserve price

– The system will automatically increase your bid to be at the reserve, and will only bid again on your behalf if you are subsequently outbid by another bidder (up to your maximum bid amount).

– If another bidder has already placed the same maximum bid or higher, they will be the highest bidder and the system will notify you via email so you can place another bid.

NB: Your maximum bid is kept completely confidential – it’s presence or amount are not disclosed to the auctioneer, vendor or any other bidder.

Bidding example:

1. The current bid on a lot is £90,000. The reserve price has been set at £100,000 (not disclosed).

2. Tom wants to bid. The minimum bid amount is £91,000 but Tom decides to place a maximum bid of £97,000. This is below the reserve price, so the system places a bid for Tom at his maximum bid amount and he becomes the highest bidder at £97,000.

3. Jane logs on to bid. The minimum bid amount is £98,000 but Jane places a maximum bid of £105,000. The system automatically increases Jane’s bid to meet the reserve and she is now the highest bidder at £100,000.

4. Tom is notified that he has been outbid. If no further bids are placed Jane would win the lot for £100,000.

5. If, however, Tom then places a maximum bid of £105,000, the bidding would jump to £105,000 and the bid would be with Jane as she bid that amount first.


BIDDING EXTENSIONS: THE BIDDING EXTENSION WINDOW ENSURES A FAIR CHANCE FOR EVERYONE


The online auction will close as per the advertised ‘Auction End Date’. However, if a bid is placed within the final 60 seconds of the auction’s scheduled end time, the auction will be extended by an additional 60 seconds – known as the ‘bidding extension window’.

If a bid is placed in the ‘bidding extension window’, the clock will immediately reset to 60 seconds again, and the auction will only finish when an entire 60-second bidding extension window passes without any further bid being placed, i.e. 60 seconds of ‘bidding silence’.

BID ‘SNIPING’ – DOES IT WORK?

Unlike eBay, bid sniping will not work on our online auction platform. There is no advantage in leaving your bid until the last few seconds; it will only initiate a 60-second bidding extension window which ensures every bidder has a fair and equal opportunity to place another bid.

Additionally, if you do leave your bid until the final few seconds you could risk your bid not being received by the platform server until after the closing time, and therefore not accepted.


FALL OF THE GAVEL: LEGAL POSITION WHEN YOU’VE WON THE AUCTION



All the properties we offer for sale via our un-conditional online auction will immediately exchange contracts.

Immediate exchange of contracts means that the fall of the electronic gavel constitutes an exchange of contracts between the buyer and seller. Both parties are legally bound to complete the transaction – usually within 28 days following the close of the auction, but this will be confirmed within the legal documentation.


POST-AUCTION: WE’LL GUIDE YOU THROUGH TO COMPLETION


If you are the successful purchaser, we’ll be in touch following the online auction to discuss the next steps. The system will take the bidding token as security (all under bidders will have their tokens refunded); the contract will then be signed on your behalf with copies being sent to both your solicitor and the seller’s solicitor.

FOR MORE INFORMATION CONTACT EDWARD MELLOR ON 0161 443 4740.


Need to speak to the team?


The auction team are available over the phone to provide any further information you may need.

If you experience any challenges with the registration process, please call the team who can help you get registered in time for the auction.

You can contact us on 0161 443 4740 or email [email protected].


Related Links


April Auction Catalogue

Buying At Auction

Selling At Auction

Book Your Valuation

Venues and Dates

Covid- 19 Update: In line with the latest government advice, we have taken the decision to start viewings, valuations and other services. For more info click here.   Learn More

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