Summer has passed, school has re-opened, and people are starting to focus again. O’Donnellan & Joyce has found over the years that September is usually a very busy month in both the commercial and the residential areas.
O’Donnellan & Joyce is now synonymous with auctions in Galway and already the office phones are busy with enquiries asking when the first auction will be held. The company has announced that the first set of auctions will be held on Friday October 9 which means open viewing for this set of properties will commence on Saturday September 5. All auction are held in the Victoria Hotel, just off Eyre Square.
Normally an auctioned property is advertised for three weeks prior to the auction date, with open viewings scheduled during each of those weeks. However, as has been the practice over the years, O’Donnellan & Joyce does a five-week lead-in to all auctions with open viewings taking place midweek and on Saturdays.
At the start of the campaign period, an advised minimum value is discussed and given to the vendor. 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. However the vendors have the right to decide to sell the property prior to the auction date if an offer that they are happy with comes in on the property — this is why the term ‘unless previously sold’ is included on all brochures. The reserve price is usually set on the day of the auction by the vendors. The reserve is the minimum price the vendors are prepared to accept — and they are usually advised by the agent to have their reserve price the same as the AMV.
The successful auction bidder is required to sign a binding contract immediately after the auction and to pay a 10 per cent deposit either to the vendor's solicitor or the auctioneer dealing with the property. 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.
As has always been the practice O’Donnellan & Joyce does multiple auctions — which means that at any given auction there will usually be a minimum of two or three properties for auction on that day. While auctions are perceived not to be as successful as they were in previous years, the system does bring the sale of the property to a head faster. If the property is sold at auction the vendor can be happy in the knowledge that the property is sold, and that because the contract is legally binding, the sale cannot fall through or the purchaser will forfeit the deposit. However if the reserve price is not reached at the auction the vendor has the right to withdraw the property. If this happens the property is placed back on the open market for sale by private treaty. In many cases the properties sell within days of the auction.
Properties for auction on Friday October 9 include areas such as The Heath, Circular Road; The Claddagh; Cahergowan, Claregalway; and Stradbally and Slievaun in Clarinbridge.
O’Donnellan & Joyce works on a ‘no sale, no fee’ basis. Anyone wishing to place their property for auction with O’Donnellan & Joyce should contact Colm O’Donnellan on (087 ) 2887446, Anne Harding on (086 ) 8173335, or the offices of O’Donnellan & Joyce on
(091 ) 564212.
