The proof is in the pudding. An auction contract.
At any time when a buyer submitted their offer – “on an auction contract” for immediate exchange. Their solicitor is unphased by the prospect of doing the due diligence, by which point the 10% deposit arrived in the NALC client account. The contract can indeed be exchanged by the auctioneer before my pudding arrives
Whilst not every property suits being entered straight into an auction, as the process evolves we are expanding the boundaries of what we sell as buyers and sellers evolve.
Assets previously not considered traditional auction lots are being transacted on the auction contract. Lot size has a part to play, The Lady Magazine building in Covent Garden still holds her head highest value auction sale £12.4m under the gavel of the great ALLSOP
Some assets may benefit from being on the market a little longer, in a predominantly cash buying market an auction backstop can prove mighty effective. It is why we are seeing a rising average lot sizes.
The auction contract works whether as an auction closing tool or following longer private treaty marketing creating a Hybrid Sale as is the case with an increasing number of properties and bare land sales.
It appeals to buyers and sellers. Sellers can of course dictate the terms of this standardised contract. The template references RICS General Conditions and our standard form of purchase agreement which streamlines the due diligence process.
Speed. As long as the legal pack and information is complete, the ability to sign immediately is empowering to all parties. The buyers who can edge their competitors unequivocally, the sellers who benefit from the absolute performance of a ready, willing and able buyer, and indeed us as agents having complete control of the process from the collection of the deposit to signing of the binding documents.
Each day we seek to harness all the feedback generated from those willing buyers to ensure the transaction is as swift and stress-free as possible.
The Covid 19 Auction infulance
Covid has perhaps accelerated the digital transformation, contracts are signed on our screens following ID/AML checks and sent to buyer and seller sides almost immediately.
Any good agent knows that there are a number of parts that make up a successful sale. Pricing, market access, a complete and accurate legal pack, a clear deadline and the scent of the deal.
The Auction contract ties this all together to which we attribute much of our sales success.
Sometimes it all happens too quickly, but Sunday dinner can always wait!