An new Property Auction site is being prepared, the platform is being tested and changes will take place throughout May. BidProp is soon to start sourcing properties in preparation for its public launch on September 1, 2009. Unlike other auction sites such as eBay, transactions on this site will be binding.
Properties are sourced from banks and administrators as well as offering new developments and conventional properties sold through estate agents – only at more attractive prices. All the properties have a discount of at least 10% to the the most recent asking price. Once you make an offer the bid is binding and if your bid meets the reserve price at the close of the auction this constitutes an exchange of contract, at which point a reservation fee of £1,000 is deducted from the purchaser’s credit card as a downpayment on the 1 % transaction fee.
The purchaser must complete on the property within 28 days, and a deposit is required to be sent to the seller’s conveyancer client account within 1 working day for 10 % of the total bid amount following the close of the auction.
The seller has to accept the highest bid offered when it meets the “undisclosed” minimum reserve price (agreed with the seller prior to the auction commencing), reserve price remains confidential until it has been exceeded during the bidding. At which point, all bidders are notified by the system via email that the reserve has been met. Once the reserve price has been met, the sale will go through. A reservation fee is then deducted via credit card and exchange of contracts takes place.
