Buying a property at auction is a fast, transparent way to secure a purchase – and going in with a clear idea of what to expect puts you in the strongest position. From exactly how buying at auction works to what takes place at each stage, this guide runs through the process.
The complete guide to buying at auction
Step 01: Browse the auction catalogue
The auction process begins with the launch of our auction catalogue – an online catalogue that lists all properties coming up for sale. As a potential bidder, this is your first chance to explore what’s available and create a shortlist of properties you’re interested in purchasing.
Step 02: Create an account
To take part in an online auction, you’ll need to create an account in advance. You can also “watch” lots, allowing you to receive updates on your chosen properties and gain access to their legal packs and information.
Registering for an account involves:
- Verifying your email address and telephone number
- Uploading photo ID (such as a passport or driving licence)
- Providing proof of address
You’ll also be asked to read and accept the auction terms and conditions.
Step 03: View the property
Before bidding, it’s recommended that you view any properties you’re interested in.
Viewings are arranged ahead of the auction and give you the chance to assess the property’s condition in person, understand its layout and surroundings and decide whether it’s suitable for your needs or plans.
Depending on availability, it’s possible to arrange multiple viewings of the same property.
Step 04: Review the legal pack and due diligence
Every auction property has a legal pack, which contains the property documentation you need to review to understand the property’s legal and physical state. This typically includes title information, searches, special conditions of sale and any other relevant legal documentation.
It’s important to seek independent legal advice where appropriate, as well as professional advice on the property’s condition and suitability.
Step 05: AML check and register your card for bidder security
Before you can place a bid during the auction, you’ll need to provide details for us to carry out an Anti-Money Laundering (AML) check and register a credit or debit card for bidder security. This involves allowing a pre-authorisation on your card, ensuring payment can be taken promptly when the auction ends.
The auction is a legally binding process, and by bidding, you’re committing to purchase the property if your bid is successful. If you are unsuccessful, no payments are taken and any holds on funds are released.
Step 06: Bidding at auction
The auction runs online over 3 days, closing in the evening of the third day – on the advertised ‘Auction End Date’. We’ll guide you through how to bid and provide all essential information prior to the auction beginning.
During the auction, you can see all bids displayed live, as well as place your own bids.
You can also choose to place a maximum bid (sometimes called a proxy bid), allowing the system to bid automatically on your behalf up to a set limit. If you are outbid, you’ll be notified by email. Maximum bids are completely confidential and are not disclosed to the seller, auctioneer or other bidders.
Step 07: Exchange of contracts
All properties are sold subject to a reserve price. This is the minimum price the seller is willing to accept for the sale to go ahead. When the auction closes and if the reserve price has been met, the highest bidder secures the property, and the sale becomes legally binding.
At this point:
- Contracts are exchanged immediately
- The buyer becomes legally bound to complete the purchase
- A 10% deposit (subject to a £3,000 minimum) is taken
- A buyer’s premium is also payable
The deposit and minimum buyer’s premium are taken automatically from your registered card. The remaining balance is then arranged directly afterwards.
Contracts are also signed on your behalf, so you don’t need to take any immediate action on the evening of the auction itself.
Step 08: Completion
Following the auction, the solicitors handle the remaining legal work, with completion usually taking place within 28 days of the auction ending. You’ll be guided through the final stages, including arranging the transfer of the remaining funds.
