Do you want to buy a house at auction? Here’s our complete guide on the process for buying at auction.

Key takeaways

Two types of auctions – unconditional and conditional. Auctions are a quick way to buy property, you must be prepared with your funds. Read the legal pack.

What’s the difference between unconditional and conditional?

Unconditional lot

Contracts are exchanged immediately following the fall of the gavel, the purchaser is legally bound to buy and the vendor is legally bound to sell the Property/Lot. The auction conditions require a full legal completion 28 days following the auction (unless otherwise stated). A deposit and a buyers premium are payable immediately.

Conditional lot

Upon the fall of the hammer, the auction conditions require exchange of contracts within 28 days (unless otherwise stated) followed by completion within 28 days of exchange. The purchaser shall pay a non-refundable buyer’s premium. The buyer’s premium applicable to the property will be noted on the property listing.

Watch our buying at auction guide:

Let’s have a look at how buying at auction works:

1. View the Property. Have a look through the details online and contact Town & Country to arrange a viewing. It’s important to take a look around the property before you bid on it at auction. You can bring a surveyor, builder or architect with you. Ask the Town & Country representative any queries.
2. Get your finances in place. If you are buying with a mortgage, you’ll need an Agreement in Prinicple from a bank or building society.
3. Look through the legal pack. A legal pack will be available to download. This has all the important information about the property, this pack will include title deeds, searches and a list of fixtures and fittings. You can ask your solicitor to review the legal pack before you make a bid.
4. Register to bid, registration is open immediately but there are steps you are required to complete nearer to the auction date. Look through our Registration Guide for step by step.
5. Auction Day. You are now approved to bid and when the bidding opens you are able to place bids.
6. You are the successful bidder. Congratulations, a member of the Town & Country team will be in contact to collect a payment of the deposit and buyer’s premium.
7. Exchange of Contracts. A member of the Town & Country team will issue a memorandum of sale for your signature. This will be sent to yours and the vendors solicitor.
8. Completion. A member of the team will be in contact to arrange the key handover.

Why do people choose to sell by auction?

Selling property by auction can be an attractive option for a variety of reasons, here are some of the most common reasons why people choose to sell property by auction:

• Speed of sale: Selling a property by auction can be a fast way to complete a transaction. Once the auction date is set, potential buyers have a set time frame to view the property and prepare for the auction. The sale can then be completed within a matter of weeks.
• Transparency: Auctions provide a transparent sales process where all buyers have equal opportunity to bid on the property.
• Certainty: Auctions provide sellers with certainty that the property will sell on a set date. This can help to avoid the uncertainty and stress that can come with traditional property sales.

How to register to bid?

Take a look through our step-by-step guide on how to register to bid to make sure you’re ready to bid on auction day.

Registration Guide

How to bid?

Once the auctioneer has approved you to bid you will receive a notification to confirm you have been approved. When the bidding opens you will be able to place bids.

Take a tour through our interactive demo on bidding at auction to get familiar with the process.

Bidding Tour

• Author: Lloyd Marsden
• Categories: Buying at Auction