A Complete Guide on UK Property auctions

The principal attraction of buying at UK property auction - or for that matter any property auction in the world - is that you can buy the property at far below the prevailing market rates. It is reported that properties at auction can be bought at nearly 30 to 40 percent cheaper and the transaction takes place immediately without protracted negotiations.

But successfully bidding and buying property at UK auction can be a daunting task unless you are familiar with UK auction procedures. In view of this, it is worthwhile to study the guidelines for UK property auction and become conversant with the auction procedure.

• Contact the auction house where you intend to participate and obtain the catalogue. Please know all auction houses hold regular auction sales and they will be able to supply you the catalogue a couple of weeks prior to the auction date. In fact, you can even subscribe to catalogue mailing lists if you plan regular investment in auction properties.


• Study the catalogue carefully, and select one or more properties that you may be interested in buying.


• It is imperative that you inspect the property you intend bidding to crosscheck whether the description of the property in the catalogue is accurate.


• It is further suggested that you research the property thoroughly and consult the local estate agents for their expert advice and also the neighbors for their opinions.


• It is necessary that you fully read the conditions printed in the catalogue and obtain legal advice from a solicitor and a chartered surveyor.


• You will be required to pay 10 percent initial deposit once your bid is successful and the contracts are signed. You should therefore go to the auction hall financially equipped to pay the deposit amount. You will however be granted 28 days to pay the balance amount of 90 percent.


• It is prudent to arrange a mortgage in principal with a bank or building society before bidding at the auction. You will be forced to forfeit your 10 percent deposit if you fail to complete within the stipulated time period that is generally 20 working days.


• You should understand that buying at auction is a serious binding commitment and you can not renege. Please note that auction offices can send you copies of legal documents provided by the seller's solicitors.


• You should carry two forms of identification, credit card or checkbook and all your banking details while going to the auction.


• Upon reaching the auction hall, get hold of a copy of any addendum sheet. Do not assume that all the properties included in the catalogue will be offered on the day of the auction - as some properties may be withdrawn or would have been sold prior to the auction.


• Suppose a property you wish to buy fails to reach its reserve price - do not despair. It is quite likely that the seller may choose to accept your bid towards the end of the auction. It is therefore essential you leave your contact details with the auctioneer.


• The standard norm is the auctioneer will look for bids around the auction hall, and will accept bids until there are no more and subject to the reserve price being met, will sell the property to the highest bidder. The auctioneer can however choose to refuse a bid without assigning reasons.

UK property auctions sell off land, condos, apartments, and houses. The UK auctions present remarkable opportunities to purchase high value properties at low prices. It is best to attend a couple of UK auctions as an observer in order to familiarize yourself with the auction procedure.