In the process of buying a commercial property at auction, carrying out research on the property is a vital part and it is highly advisable to do so. This section of our guide covers the factors you should be studying in order to gain full knowledge of the auction property that you're interested in.
Once you have identified a commercial property for auction that interests you, the first thing to bear in mind is that the guide price quoted in the auctioneer’s catalogue is simply an indication of the minimum price the lot is expected to achieve at auction.
This is subject to change at any time prior to auction day and while it’s possible no bids will exceed the guide price, it is more than likely that they will. It is also worth remembering that, unless otherwise stated, each lot is subject to a reserve price and if this isn’t achieved the property will be withdrawn from the auction.
Next, as a potential bidder, it is prudent to read the conditions and research the commercial property for auction thoroughly. This involves checking that what is stated in the catalogue and in the related documentation is an accurate reflection of the property. This can be undertaken by yourself but it is highly recommended that you seek professional guidance in this respect.
The relevant documentation may be available to download from the auctioneer’s website but failing this, you will need to contact the vendor’s solicitor. It is important to ensure that all these documents are made available to yourself or your representative as it can’t be guaranteed that the auctioneer will be able provide a copy of the legal pack.
It is wise to study this documentation carefully as it will include title information and leasehold documents. It is also advisable to carry out the customary searches and enquiries in order to be aware of any issues that could have a bearing on whether or not you decide to go ahead and bid for the lot at auction.
These factors might include any planning permission relating to the property. Another could be the Energy Performance Certificate (EPC) rating which could have an impact on the running costs of the building.
The extent to which you conduct this research is entirely up to you, but you should be aware that the buyer is understood to have full knowledge of all the related documentation and neither the vendor nor the auctioneer is responsible for any issues that may subsequently arise.
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Ways to Find Commercial Property to Buy for Auction
