A Beginner’s Guide to Buying at Auction
Buying a property at auction might feel daunting if you’ve never done it before, but it can be one of the most rewarding routes into homeownership, particularly if you’re looking for something a little different.
Why consider an auction?
Auctions often bring unique opportunities to the table: properties that have been overlooked, homes in need of renovation, or those being sold through circumstances like probate. These can sometimes represent particularly compelling opportunities for buyers, and the process tends to be faster with fewer costs than a traditional sale.
Get your finances in order early
Before you even think about bidding, your finances need to be fully in place. If you’re purchasing with a mortgage, you’ll need an agreement in principle secured ahead of auction day. Once the hammer falls, you’re legally committed, and there is no time to arrange lending afterwards. Completion typically takes place within 28 days, so everything must be ready to move quickly.
It’s also worth budgeting beyond the purchase price. Stamp duty, legal fees, and any renovation costs all need to be factored in before you set your limit, not after.
Do your homework first
Before bidding, it’s essential to familiarise yourself with all legal and professional matters relating to the property. Legal packs are available on request from the auction office, and we strongly recommend instructing a solicitor to review yours before auction day. They can flag anything that might affect the property’s value or usability, such as restrictive covenants or title issues.
Pre-auction viewings can also be arranged, and a survey beforehand is wise. Unlike a conventional purchase, you cannot renegotiate on price once you have bid.
What to bring on the day
You’ll need two forms of ID before you can bid: one photographic (such as a driving licence) and one proof of address (such as a recent utility bill). Have both ready well in advance.
It’s also worth deciding your maximum figure before you arrive and committing to it. Auction rooms can be fast-paced and competitive, and it’s easy to get caught up in the moment. Going in with a firm ceiling and sticking to it is one of the most important decisions you can make.
If you’re unable to attend in person, most auctions offer proxy, telephone, or online bidding, so do not let logistics put you off.
If you win the bid
A successful bid is a legal commitment. You’ll be required to pay a 10% deposit on the spot and sign and exchange contracts before you leave. Properties are sold as seen, and withdrawing after the hammer falls means losing your deposit and potentially facing further legal consequences, so it is vital you are certain before you bid.
That said, for the well-prepared buyer, auctions can be an excellent way to secure a property efficiently and at a competitive price. Get the right advice, review the legal pack, arrange a viewing, and you could walk away with something really special.
Ready to find your next property?
Thinking about buying at auction? We’d love to help. Browse our current auction listings or get in touch with the team. We can guide you through the process, arrange viewings, and make sure you’re fully prepared before auction day.