Buying Through Private Treaty
A private treaty sale is one where offers are invited against a fixed price quoted for the property in question. The property remains on the market until a suitable offer is made and accepted by the seller. Once an offer is accepted, a non-binding booking deposit is collected from the buyer and held by Lisney. A binding 10% (less booking deposit) is then paid to the solicitor when contracts are exchanged and a suitable closing date is agreed.
Buying at Auction
Normally an auctioned property is advertised for three weeks prior to the auction date with open viewings scheduled during each of those weeks. At the start of the campaign period, an Advised Minimum Value (AMV) is given. The AMV is the estate agent's true opinion of the value of the property at the commencement of the marketing campaign. The AMV cannot be increased during the campaign, even if an offer in excess of the AMV has been made, prior to auction. The reserve is usually set on the day of the auction by the vendor.
The successful auction bidder is required to sign a binding contract immediately after the auction and to pay a 10% deposit to the vendor's solicitor. The deposit is normally paid by bank draft or personal cheque. As a legally binding contract is entered into, it is advisable that prospective purchasers arrange the following prior to attending an auction:
- Have the property surveyed
- Have their solicitor check title to the property before attending an auction
- Obtain the necessary finance