Auctions - Level 2 Greenford Flashcards
Describe the property
Ground floor and first floor retail unit
mid terrace
located on a busy retail street
traditional brick construction
multi framed sash windows
freehold
Talk me through this instruction
Upon receiving the enquiry, I requested the relevant details of the property, I carried out a conflict of interest check and due diligence.
I carried out a desktop appraisal of the property finding comparable evidence to establish an appropriate investment yield. I established that the property was rack rented.
I confirmed the guide and reserve price with the client and issued terms of engagement
I inspected the property, took photographs and made notes on the location map.
I drew up the particulars of sale which were sent and approved by the solicitor.
I monitored levels of interest throughout the auction process and kept the client up to date
The property successfully sold at auction
I collected the necessary AML checks, I ensured that the purchaser paid the 10% deposit and auction buyers fee.
What details did you request on the property?
Property Address
Lease details
Title Plan
Planning History
How did you establish that the property was rack rented?
It had just been newly let on a 5 year lease. I cross checked this with other recent lettings.
What was included in your terms of engagement?
Property address
Client and solicitor
AML requirements
Guide and Reserve
Entry Fee
Allsop Fee
How did you account for the first floor in your appraisal?
I spoke with local agents and established that in the area it was typical to apply a rate per square foot.
What is your entry fee for auctions?
£1,000 + VAT
What AML requirements did you take?
Certified copies of ID and Proof of address within 3 months
Who can Certify ID?
List of professionals on Government Website
What did you notice about the local area?
Low vacancy rates
Occupied by national and local occupiers
Near to public transport
Affluent area
Was it ethical to charge a buyers fee?
Yes. This accounts for further anti money laundering checks.
How did you appraise the property?
I undertook due dilligence fo the property I checked planning details, title plan and lease details.
The property had been recently let, I looked at other recent lettings within the area and established that the property was rack rented.
I used co star and allsops internal data base to look at recently transacted evidence for properties within the same or similar locations and established the appropriate capitalisation rate.
I capitalised the rent to obtain a value.
What did you guide the property at?
property was guided at £1.2m reflecting 5.71%
What did the property sell for?
£1.39m reflecting 4.65%
