Landlords will see more transparency when they’re buying at auctions than they have before with the launch of a new initiative from auctions giant SDL.
It has introduced a summary sheet of fees for all its lots in each property’s legal pack that details exactly what’s payable, so buyers have a clear understanding of any extra costs before bidding.
The auctions industry has seen rapid growth as a result of the pandemic, as both buyers and sellers embrace socially distant transactions, according to SDL, which now holds regular live-streamed auctions, running monthly auction events alongside its daily timed auctions.
This has also introduced many newcomers to the market, says MD Andrew Parker (pictured), who wants them to have a positive first experience.
He believes auctions are no longer the preserve of investors and developers.
“We’re seeing a growing number of private individuals buying and selling in this way – particularly in the uncertainty of 2020 – so we consider it our duty to ensure the process is as straightforward as possible, with no hidden costs,” says Parker.
He adds: “Lots listed on our website already include information about buyer fees but the introduction of the summary sheet within the legal pack makes this even clearer, spelling out exactly what costs the winning bidder will be expected to pay.”
Parker says this clarity extends to guide prices too. “All of our property listings make it plain that the reserve will be no more than 10% higher or lower than the guide price, which means guide prices cannot be set artificially low.
“Some lots will exceed all expectations but that’s just the nature of auctions and competitive bidding.”