Venmore Auction December Catalogue 25 (1) - Flipbook - Page 25
DUE
DILIGENCE
RECOMMENDED DUE DILIGENCE BEFORE BIDDING
GUIDES AND
RESERVES
UNDERSTAND THE GUIDE PRICE AND RESERVE PRICE
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.
What is a Guide Price?
A Guide Price is an indication as to where the Reserve is currently set. It is not necessarily what the
auctioneer expects to sell the lot for, and should not be taken as a valuation or estimate of sale
price. In most instance, the reserve will not exceed the Guide Price by more than 10% if it is a single
figure Guide price, and if a Guide Price range is quoted, the Reserve will fall within that range.
What is a Reserve Price?
The Reserve is the minimum figure that the Auctioneer is currently authorised by the vendor to sell
the property for. Please note that Reserve is liable to change throughout the course of marketing.
The Auctioneer reserves the right to lower the Reserve during the auction to a level that matches
the existing highest bid. In the event that there were no further bids, the bidder who placed that
8highest bid9 will be declared the purchaser at the end of the auction process.
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 – it9s 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.
