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dave

Completion % Of Auction Purchases

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Just interested that is all. There has been some very interesting, if not unbelievable results coming out of the auction houses recently. What happens if the buyer cannot complete, are they sued? Do they lose there deposits on the day?

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Having just recently attended an Allsop commercial auction in London, the successful bidder has to hand over a cheque/bankers draft (no suitcases of cash allowed ;) ) for 10% of the going price.

The cheque etc... should be able to clear the day it is written. Allegedly.

That money is then held by the auctioneers - the buyer has 4 weeks to complete their purchase - or else forfeit their deposit... obviously the auction house still take a cut of the deposit and no doubt your solicitors will also do the same, then you pay Mr.Brown for your CGT... and if you can live with the hassle of putting your place up for auction all over again then I guess its a nice little xmas bonus!

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Just interested that is all. There has been some very interesting, if not unbelievable results coming out of the auction houses recently. What happens if the buyer cannot complete, are they sued? Do they lose there deposits on the day?

Firstly the unbelievable results, yep still some quirky results, but certain auctioneers, Nationwide not London exclusively, are struggling to maintain the volumes. Pattinsons and Venmores sold 50% and 40% respectively at their last auctions.

What would you do in the auctioners place in a falling market, probably not make a fuss and re-list, or chase the potential buyer through the courts which they are entitled to do? Let`s not forget, auctioneers chasing bad debts en-masse would not be good news for a market currently unerpinned by little other than positive spin. Also If you part with perhaps 5K and don`t complete happy days, re-list.

My hunch is that those not completing are in line with the %drop in sales, I could ask an Auctioneer, he is brilliant and old school (very honest and straightforward), but this may be a question too far.

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There has been some very interesting, if not unbelievable results coming out of the auction houses recently.

Such as ?

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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