Buying a house at auction: How can you prepare?

Auctions can be an effective way to avoid lengthy buying procedures, full of uncertainty. However, be prepared, as soon as the hammer falls, you are locked into paying. Here’s how you can make sure you are fully equipped for buying a house at auction. 

Steps to prepare before the auction

1. Review the Auction Catalogue and Legal Pack Early

• Auctioneers provide a catalogue of properties up for auction, sometimes 2-3 weeks in advance 

• Make sure you get the legal pack for any property you’re interested in. This pack includes title documents, any leases, local authority searches, environmental reports, special conditions of sale, seller’s information etc. 
• Have a solicitor experienced with auction purchases look through the documents. They’ll help spot legal issues which you may not understand. 

2. Get a Survey/Structural Inspection

• Commission a RICs survey or at least a HomeBuyer Report, possibly more detailed if the property looks in poor condition. 

• Check for hidden defects: subsidence, damp, roof condition, electrical/plumbing etc. Because you can’t negotiate based on defects after the sale, you need to know what you’re getting in for 

1. Check Financing and Be Ready 

• If using a mortgage, check whether your lender will finance property bought at auction and whether they can deal with the tight timeline. Some lenders are more cautious with old/unusual properties or ones with issues.  

• Have a mortgage agreement in principle before the auction so you know what you can borrow. 

• If necessary, consider bridging finance or auction finance in case standard mortgage takes too long. 

3. Set your budget (including all extra costs)

• Hammer price is not all. You’ll need to pay: 

• The 10% deposit immediately after winning. 

• Auction fees (buyer’s premium, admin fee) if applicable 

• Legal fees for reviewing the pack, solicitor’s work 

• Survey fees 

• Costs of any renovation/repair, insurance, clearances 

• Stamp Duty/Land Transaction Taxes  

• Also, set a strict upper limit for how much you’re willing to bid; auctions can get emotionally charged. Don’t let the bidding go over your budget. 

4. View the Property if You Can

• Arrange a physical inspection or at least a viewing. Catastrophic issues may be visible. Even if you can only visit briefly, try to see the property, neighbourhood, condition.  

5. Check Local Authority and Planning Issues

• Search the local council’s planning portal for any known/planned works, restrictions, listed building status, conservation area, etc. 

• In leasehold cases: check the lease length, ground rent, service charges, any unusual lease obligations. Short leases can severely affect value and mortgage-ability 

 

The Auction Day and After: What Happens 

1. Registration and Bidding

• You register with the auctioneer (or online if remote). You may need ID, proof of funds etc. 

• Bids start ; guide prices are given but property could sell for more, especially if there is competition  

2. Winning the Bid

• As soon as the hammer falls, you have a legally binding contract: you are committed to buy under the terms in the auction pack/tender. 

• You must pay the deposit immediately and then the remainder by the completion date as specified  

3. Completion

• The legal transfer via your solicitor (and seller’s solicitor) happens. Title is transferred once payment is made.  

• Any conditions in the legal pack must be honoured (e.g. rights, restrictions, condition of property).  

For any further guidance or information, please get in contact with our Auctions team on 01473 229862 or email [email protected]