Buying a property at auction is an exciting and fast-paced process that offers great opportunities for investors, homebuyers, and developers. However, success at auction requires preparation, strategy, and a clear understanding of the process. Whether you’re a seasoned buyer or new to auctions, these top tips will help you confidently secure your dream property.
1. Do Your Research Beforehand
Knowledge is power when it comes to buying at auction. Start by researching available properties and understanding the market value of similar properties.
Check the auction catalogue – Browse through the lots well in advance and shortlist properties that meet your criteria.
Understand the local market – Look at recent sales prices in the area to get an idea of property values.
Consider the property’s potential – Whether you’re buying to rent, renovate, or resell, think about how much value you can add.
2. Read the Legal Pack Carefully
Each auction property has a legal pack containing crucial documents such as title deeds, special conditions of sale, and local authority searches. This information can highlight potential issues, such as legal restrictions or outstanding charges.
Look for hidden costs – Some properties may come with additional fees, so read the fine print carefully.
Check for planning permissions – If you’re buying with the intent to develop, ensure you have the necessary approvals.
Seek legal advice – A solicitor can review the legal pack and flag any concerns before you commit.
3. Arrange a Viewing and Get a Survey
Auction properties are sold “as seen,” meaning there’s no going back once you’ve won the bid. It’s essential to view the property in person and, if needed, commission a survey.
Look for structural issues – Check for dam p, subsidence, or any repairs needed.
Understand renovation costs – If a property needs work, get estimates so you know what you’re committing to.
Assess rental potential – If you’re buying to let, research rental demand in the area.
4. Set a Budget and Stick to It
Auctions move fast, and it’s easy to get caught up in the bidding frenzy. Before you attend, decide on your maximum budget, factoring in all costs beyond the hammer price.
Include additional fees – Stamp duty, legal, and auction fees should be considered.
Budget for renovations – If the property needs work, set aside funds for repairs.
Avoid emotional bidding – Stay disciplined and don’t exceed your limit, no matter how tempting.
5. Have Your Finances in Place
Auction purchases typically require completion within 28 days (sometimes less), so you must have your finances sorted before bidding.
Get a mortgage in principle – If you need financing, speak to a lender beforehand. Not all auction properties are mortgageable, so check in advance.
Consider bridging loans – A short-term loan can help bridge the gap if a mortgage isn’t an option.
Have your deposit ready – You’ll need to pay a deposit immediately if your bid is successful.
6. Register to Bid Early
To participate in an auction, you must register in advance and provide the necessary identification. Whether bidding online, by telephone, or by proxy, make sure you’re approved to bid before the auction day.
Check auction requirements – Every auctioneer has different registration deadlines and requirements.
Provide valid ID and proof of funds – These are usually required before you’re allowed to bid.
Decide on your bidding method – Online, telephone, or by proxy – choose what works best for you.
7. Stay Calm and Confident on Auction Day
When the bidding starts, things move quickly. Keep a cool head and stick to your plan.
Don’t bid too early – Let the bidding settle before making your move.
Be prepared to walk away – If the price exceeds your budget, don’t be afraid to let it go.
8. Understand What Happens After Winning the Bid
If you’re the highest bidder when the hammer falls, the property is legally yours – so be prepared to act quickly.
Pay the deposit immediately – the deposit is required on the day.
Complete within the deadline – Most auction sales must be finalised within 28 days.
Sort out insurance – Arrange building insurance as soon as possible, as you’re responsible for the property from the moment you win.
Final Thoughts
Buying at auction can be a fantastic way to secure a property quickly and at a competitive price, but preparation is key. By researching thoroughly, setting a budget, and staying disciplined on the day of the auction, you can walk away with your dream property while avoiding common pitfalls.
Looking for your next auction opportunity? Check out our upcoming lots and register to bid today!
