Guide to buying at Auction

If you’re interested in buying property at auction, we’ve put together some essential points you will need to consider. If you have any questions, please contact our team by calling 01228 510 552 or emailing cumbria@auctionhouse.co.uk


Before The Auction

Research the properties

You can sign up to our mailing list to be kept up to date by email with all our latest lots that march your requirement.

For every auction we produce a catalogue displaying all of the residential and commercial properties to be offered. Each catalogue is available approximately 3 weeks prior to the relevant auction online and in print.

If you find a property which is of interest, please let us know so that we are able to contact you if the property is withdrawn or sold prior to the auction. We can also advise you on upcoming auctions, auction catalogues and late entries.

When you have identified the property lots you are interested in, you can obtain particulars about the lot on our website which include details about the lot such as photos, guide prices and floor plans.

Open Viewings

Make sure you attend one of our open house viewings and ask any questions you might have to one of our team.

Survey

As a property at auction may not be in the best condition, it’s advisable to have a survey or inspection before choosing to bid so you can make an informed decision. Please ask your surveyor to call us to make arrangements for access to the property.

Legal

It’s important to appoint solicitors as early as possible in the process so they can inspect the legal packs and check other information including searches and planning permission. Legal packs for each property are available to access online.

Finance

On the day of the auction, you will need 10% of the purchase price (subject to a minimum of £5,000), any buyers premium, as well as the auctioneers administration charge. These figures can be found in our auction catalogue.

The remainder of the purchase price and fees will be needed for completion (usually within 28 days after the day of the auction).

You can organise this with your financial advisor, bank, or by using short term finance.

Plan

We advise potential purchasers to look on our website or contact us prior to the auction to make sure the lots you are interested in are still available.

Before arriving at the auction, determine your bid and set a maximum bid level. You need to take into consideration all costs incurred with a successful bid, such as fees and stamp duty.

Understand All Terms & Conditions

Buying property at auction is different to buying property privately and we strongly advise potential purchasers to check that they have read and understood all the various legal documents and terms & conditions.

Pre-Auction Sales

You can make an offer (which should be in writing by email) for a property at any time up to the date of the auction, but if your offer is accepted you will have to be in a position to exchange contracts and pay your deposit immediately.

Internet, Telephone & Proxy Bidding

If you are unable to attend the auction sale, you can bid by internet, telephone or by proxy. In each case we need a completed registration form prior to the date of the auction.


Auction Day

Registration

It is advisable to arrive well before the advertised auction starting time. To register and to buy property at auction you will need to bring photo identification AND proof of address with you. We accept a valid passport, national identity card and valid photo card driving license for photo ID and a recent utility bill, currently local authority tax bill, bank statement or mortgage statement issued within the last three months for proof of address.

Guide Prices

Each auction property has a guide price which is an indication of what the seller expects to achieve and the starting price at which bidding will commence. It is therefore subject to change. The guide price is not the price at which the property will necessarily sell and it is not uncommon for properties to sell for a considerable amount above the guide price.

Addendum

Pick up an addendum sheet which lots any lots that have been withdrawn, sold prior or postponed until a later auction date as well as any last-minute changes to the catalogue entries.

Bidding

The auction will begin on time and the auctioneer will explain the auction procedure. Lots will follow the order of the catalogue and the auctioneer will announce each lot and explain any last-minute changes.

If you wish to bid on a lot make sure your bids are clear and concise by raising your hand, holding up a catalogue or, raising your bidders paddle.

At the fall of the auctioneer’s gavel, you have exchanged contracts and have entered a legally binding sale.

Successful Bidders

If your bid is successful you will be requitred to complete the Memorandum of Sale and pay the deposit and fees there and then. You will need to provide photographic ID and proof of address. If multiple people are to be named on the memorandum, you will need ID for all parties.

If you are bidding on behalf of a company you must provide the following original identification: Proof Residence and photo ID for one of the Directors (as detailed above); Certificate of incorporation of the company (if a Limited company); Official list of Directors.

If you are bidding on behalf of another person or company you must provide the following original identification: Original identity documents (as above) for yourself as the bidder and the person/company who will be listed as the purchaser; A letter of authorisation from the purchaser for you to act and bid on their behalf.

Post Auction Sales

In the instance that a property remains unsold, please speak to one of our team to express your interest. We may be able to arrange a deal with the vendor immediately after the auction has finished which would proceed under normal auction rules.