Introducing 'Registered Auctions'. - National Residential
 

Property News UK

Introducing ‘Registered Auctions’.

National Residential have been at the forefront in setting standards for selling property quickly and fairly since we began in 2007. We were a select group of industry representatives selected to define a Code of Practice For Quick House Sales Companies to The Property Ombudsman (TPO) and in 2013 we helped set up the National Association of Property Buyers (NAPB) to inform the public of companies that agree to the principles and abide by the practices listed in the code.

At the heart of the code is transparency – see Code of Practice for Residential Property Buying Companies

We believe that selling property using our ‘Modern Auctions’ method adds convenience and transparency to our property sales:

  • by accepting a combination of online and telephone bids ensures no-one is prevented from making an offer due to other commitments, inexperience of internet bidding or financial arrangements that prevent us ring fencing funds for the holding deposit until the auction ends.
  • all offers (including telephone bids) are added to the auction and our consultants keep all participating parties informed.

Although the process that follows online bidding to secure a purchasers agreement usually takes just 24 hours to conclude it can sometimes take longer and the bidding process is only formally ended once we are sure we have the highest bid, the seller has accepted this bid, and the winning buyer has paid their deposit and has passed the financial qualification process with our sales team.

To complement our existing sales options by providing sellers a faster qualification period and more certainty to the highest bidder at the end of an auction, we are pleased to introduce ‘Registered Auctions’ which will run alongside our existing auctions.

The platform is provided by the ‘Essential Information Group’ (EIG), a secure, independent online auction service provider since 1991.

 

Registered Auctions

‘Registered Auctions’ differ from our existing auctions because bidders must create a password protected account where they can upload financial information to Sage Pay as part of the bidding process.

Sage Pay is an independent business used by  55,000 businesses to securely collect online payments. They have the highest level of card data security (PCI DSS Level 1 compliant) so we know our buyers’ information is protected.

Some of the main differences between our existing auctions and our Registered Auctions are:

  • Bidders will need to create a Registered Account (called an Auction Passport) and will need to be logged in to bid
  • Bidders need to upload payment details per property and a ring fence will be put around the available funds as soon as a bid is placed to ensure the deposit is paid immediately the auction ends.
  • The auction process ends as soon as the last online bid has been placed because there is no additional need to collect and qualify financial instruction.

Registered auctions are identified by the label

 

‘How To Bid On a Property’ Guide

 
1) Viewing A Property

Anyone interested in a property being sold by National residential can arrange a viewing guided by a local estate agent, by simply telephoning National Residential on 01244 757152 (Mobile Friendly) or 0800 612 3694 (Freephone) or any other contact means featured online at https://national-residential.co.uk (email, form, call back request etc)

Alternatively, contact can be made through local estate agent or online forms from advertising portals such as rightmove.co.uk

 

2) Auction Guide

Bidding

Place a bid on the property making sure you confirm that you agree to our Terms & Conditions and supply your mobile phone number.

After submitting the bid by clicking ‘Place Your Bid’ new bidders will be texted a verification code to their phone and the website will reveal the fields required to confirm the bid.

Similar to the role of auctioneers at live auctions, our ‘non-Registered Auction’ bidding system records bids through several media channels – including bids made online and by telephone.

Anyone interested in bidding on a property can also instruct National Residential consultants to bid on their behalf by telephoning 01244 341066.

 
Auction End

Unless a seller chooses to accept an offer and finish the auction early OR we receive a bid in the final minutes of an auction which will prompt a bidding extension window to ensure all bidders have ample opportunity to raise their bids, all online bidding for our ‘non-Registered Auctions’ end at 7pm on the date show in the property details.

When online bidding ends, National Residential will notify all bidders of the highest offer received and qualifies the highest bidder’s financial position. During this time National Residential may still accept telephone bids.

Although the qualification process usually takes just 24 hours to conclude, it can sometimes take up to a week as buyers may delay paying their deposits and problems may sometimes arise when financially qualifying buyers.

The online bidding process is formally ended once we are sure we have the highest bid, the seller has accepted this bid, and the winning buyer has paid their deposit and has passed the financial qualification process with our sales team.

 

Winning Bidders

A seller may also choose a lower cash offer over a higher mortgage offer because certainty of sale is more important to them than a higher price. It is therefore necessary to obtain the highest mortgage offer and the highest cash offer to present to the seller.

 

Signing the Purchaser’s Agreement Form and Paying The Holding Deposit

The successful Bidder will be sent a Purchaser’s Agreement and is required to complete this with Buyer’s contact details, solicitor’s details and broker details (if any) and return within 1 business day with the payment for the balance of the Holding Deposit.

Click here to see an example purchaser agreement

To bid on ‘Registered’ Auctions OR TO VIEW LEGAL DOCUMENTS, you must first create an EIG Auction Passport Account. You can create an account without bidding.

To create an Auction Passport click the ‘Login to Bid’ button on a Registered Auction property detail page. You will be directed to EIG’s ‘Auction Passport’ page. Click ‘Click here to sign up for free.’

The process will take you through the following steps:

  1. Register an account by providing your name and email
  2. You will receive an email from passport@eigroup.co.uk with a subject ‘Auction Passport Registration’ asking you to verify your email address by ‘Activating Your Account’.
  3. After activating your account, you will need to authorise the Auctioneer (National Residential consultants) access to your contact details.
  4. You will need to submit more contact details (address & telephone) to view auction lots & legal documents.
  5. You will need to agree to National Residential Online Bidding Terms & Conditions

 
Provide Financial Information and Proof of Identity
The first time you register to bid on a registered-Auction lot you will be asked to verify your mobile number and upload copies of your photo ID (e.g. driver’s licence or passport) and proof of address
(dated within the last 3 months). This is required so can easily keep in touch and helps us confirm your identity in the event of you purchasing a lot.

You will need to register a payment card per property to confirm your ability to pay the holding deposit
and any buyers fees listed in the agreement page and the auction details.

 
Placing a Bid on a Registered Auction
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.

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.

If anyone has any difficulty bidding on a Registered Auction, they should phone National Residential on 0800 612 3694 to discuss their problems and seek help.

 
Ring Fenced Holding Deposits (Funds on Hold)
To bid on a Registered Auction, you must agree to have a ‘hold on funds’ placed on your credit card (or bank account if you use a debit card), to the value of the bidder holding deposit plus any buyer’s fee listed in the auction. The total amount ring fenced will be clearly listed in the agreement page details.

The ‘hold on funds’ will affect the available amount you have to spend on your card, as the amount will be ring-fenced and you will not be able to spend it until the hold has been released if you do not win the auction.

If you are the winning bidder then the amount will be taken in full from your registered credit card or bank account immediately following the close of the auction if the auction reserve has been met.

       NB. Some reserve prices are kept secret until the end of bidding.

If you are not a winning bidder then the hold on funds will be released from your card, but be aware that it can take anything from a few hours up to several days for the hold to be released (dependent on the card issuer). If in doubt, contact your card issuer. Please be aware that you will not have access to the funds until the hold has been released.

 
Reserve Prices on Registered Auctions
Virtually every lot is sold subject to a reserve price (the minimum price that the auctioneer is authorised to sell for on the day).

Some reserve prices are kept secret until the end of the auction and bidding depends solely on competitive bids.

Where a reserve price affects the bidding, 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 – its presence or amount are not disclosed to the auctioneer, vendor or any other bidder.

Where a reserve price is kept secret and does not affect bidding, bidders will be notified if the reserve has been met at the end of the auction.

 
Registered Auctions Duration & Bidding Extensions
Bidding on Registered Auctions closes 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’.

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

An auction can be ended early or withdrawn from sale with immediate effect any time during the auction duration. Additionally, ‘End Dates’ can be extended or brought forward. An automatic email or SMS will
be sent out to all registered bidders and watchers informing them of any date change.

 
Winning a Registered Auction

The auction winner is the person with the highest bid when all bidding has stopped – i.e. at the and of any bidding extension window.

 
Paying the Holding Deposit

All bidders agree to pay a holding deposit (of the greatest amount between 1% of the sale price or £2500) plus any buyers fees listed in the auction details within 24 hours of winning an auction.

The amount specified in the auction payment details page will be taken immediately after the auction ends from the winning bidders funds if the reserve has been met.

If the amount taken is less than the sum of the holding deposit plus any buyers fee payable, the remainder must be paid within 1 business day of receiving notice of the outstanding amount from National Residential.

 
Post Auction Process

National Residential offer property for sale by ‘conditional’ auction contract. The end of an Auction and payment of the holding deposit secures the winning bidder with an exclusive ‘right to purchase’ the property within the prescribed time frame – usually 28 days but this will be confirmed in the auction’s terms and conditions of sale.

If you are the successful purchaser, we’ll be in touch following the registered auction to discuss the next steps and to send you a Purchasers Agreement.

 

3) Completion

National Residential vendors to choose us to sell their properties for a fast sale. As agreed in the Terms & Conditions of a sale, bidders must use their best endeavours to exchange within 28 days and complete within 56 days of the end of the auction.

National Residential offer panel solicitor and mortgage broker services from independent professionals who act quickly and who are able to complete in these timescales. There is no obligation to use our panel solicitors or brokers but if you do, we are able to more easily manage the whole sale process quickly and efficiently.
Our panel solicitors and brokers will also price match any quote that you may already have so you get all the benefits at no extra cost.

If Buyers prefer to use their own solicitors they must instruct their solicitors and pay for searches and surveys (if they are having them) within 2 business days of their bid being accepted. Buyers must also advise their solicitors of these Terms and Conditions and of the importance of exchanging contracts within the 28-day timeframe.

 

FOR MORE INFORMATION ON ANY OF THE TOPICS COVERED ABOVE PLEASE CONTACT NATIONAL RESIDENTIAL ON 0800 612 3694

For more details of our Terms and Conditions, you are strongly advised to see our National Residential Online Bidding Terms & Conditions document @ https://national-residential.co.uk/downloads/NationalResidential_OnlineBiddingTerms.pdf




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