Guide to buying a property at auction

Buying a property at auction may feel overwhelming, but it's actually very simple. The whole sales process is much quicker than buying through an estate agent. You could be picking up the keys to your new property in as little as 28 days!

If you're considering buying at auction or just want to learn more, check out our 10-step guide to successful buying at auction below.

1

Research

Make sure you fully understand the process of property auctions before you commit to purchasing a property. The most important thing to know is there's no backing out when you submit a bid.

Most of our properties are sold at auction under an unconditional method of sale, however, they can also be sold through conditional auctions (modern method).

We recommend attending or watching an auction in advance of bidding for the first time.

2

Property search

Once you know what you're looking for, use our online search tool to find properties in your desired area.

Register for our property alerts to receive all the latest lots that match your requirements.

Speak to your local Auction House team to receive information about upcoming auctions, auction catalogues and late entries.

3

Viewings

We highly recommend viewing a property in person before bidding. This is a great opportunity to speak to the auction team and ask any questions you may have.

If the property requires structural work, it would be advantageous to attend a viewing with your builder, to assess potential costs and timeframes for you to consider before bidding.

4

Survey

You should consider having a survey or inspection of the property before you bid - especially if the property isn't in the best condition or you have any concerns.

Make sure you have received any reports before the auction, so you can make an informed decision before bidding begins.

5

Read the legal pack

When we asked our auctioneers what's the one piece of advice they would give to a first time auction buyer, the most common answer was 'read the legal pack'.

The legal pack contains important information that will ensure you go into bidding fully informed. This could be searches and planning permissions or even additional fees. It will also set out the conditions of sale.

6

Solicitor

Before the auction, you will need to appoint a solicitor.

Your solicitor will need to review the legal pack and may be able to highlight certain things you missed or should be aware of.

7

Finance

On the day of the auction, you will need access to a certain amount of funds. This is the same if you are buying a house or a commercial property.

  • 10% of the purchase price (subject to a minimum amount)
  • Administration fee
  • Buyer premium (if applicable)

On completion (typically 28 days after the auction) you will need the remainder of the purchase price and fees.

This can be arranged via your financial advisor, bank or through a specialist auction finance arrangement.

8

Set a budget

Taking into consideration any deposits, fees and financial lending, as well as any funds you may need to invest into the property, make sure you set a maximum bid amount.

Do not bid beyond your means as a final winning bid is legally binding, and you will have to pay.

9

Prepare

Make sure you register to bid before any deadlines - you will need proof of ID and address.

The auction addendum will detail any last minute changes or updates to the lot you're bidding on.

10

Auction date

If your bid is the highest when the final hammer falls, you exchange contracts, and the sale is now legally binding for both parties.

You now need to complete the memorandum of sale and pay your deposit and any relevant fees.

Make sure you speak to your insurers, as after exchange, you will be responsible for insuring the property.

Now all you have to do is sit back and relax, knowing you can pick up the keys in a matter of weeks.

If you're ready to find your next property at auction, search our current lots or register for property alerts today.