Whether investing in property as a developer, landlord or business owner, or looking for a house for yourself, purchasing a property through any means is a big decision that should be carefully made. While most of your focus will be on the lot you’re considering, it’s also always worth spending some time making sure you know the processes, rules and terminology that comes with buying a property by auction.
At SDL Property Auctions, we know auctions inside-out, and are always here to help first-time and experienced auction buyers make their purchase as simple, fast and faff-free as possible. If you’ve got questions about buying at auction, read through the list of FAQs below to see if we’ve already answered them. If you can’t find what you’re looking for, reach out to our friendly team by emailing us at enquiries@sdlauctions.co.uk, or calling 0800 046 5454.
Buying property by auction FAQs
Can I view the property before the auction?
Yes, potential buyers are able to organise a physical viewing of the property they’re interested in. These viewings can be arranged by clicking the ‘Request Viewing’ or ‘Book Viewing’ buttons on the listing itself, at which point interested parties can select a date and time that suits them, and visit the property as scheduled. In some cases, such as where a property is tenanted or unstable, physical viewings will not be available. In place of this, we always endeavour to carry out a virtual tour of the property to be included in the online listing. This is to allow potential buyers to gauge their interest in the property in the absence of an in-person viewing.
How can I view the legal pack and contract before the auction?
The legal pack and contract associated with any property can be downloaded from the relevant property listing on our website. These documents are uploaded as soon as we receive them from the seller’s solicitor but, if they’re not available for the property you are considering, you can register your interest to receive an alert for when they are uploaded.
Can I have the property surveyed before the auction?
Yes, you can conduct a survey on a property you’re interested in purchasing prior to the auction. This is often something which is advised, and access to the property can be arranged between your surveyor and our team. In order to do this, instruct your surveyor to contact us on 0800 046 5454.
Can first-time buyers buy by auction?
Yes, first-time buyers are welcome to purchase a property by auction, and this is becoming a more popular way to get onto the property ladder. If you are in this position, however, we recommend familiarising yourself with the processes involved by reading through our handy Guide to Buying a Property at Auction.
Will I be able to get a mortgage on the property?
Yes, most auction properties can be financed through the same means as a property listed on the open market, making it an accessible method of purchase for buyers of all backgrounds. Learn more about this financing option in our ‘Can you mortgage an auction property?’ blog.
Do I need to pre-register to bid?
If you’re interested in bidding for a property being offered at an Auction Event, you will need to register ahead of the auction date. If you’re looking to bid on a Timed Auction lot, you can register to bid at any time before the end date of the property’s auction. We’ve detailed how to register for both of these methods in the following question.
How do I register to bid before the auction?
To register to bid in an Auction Event, you need to complete our simple bid registration form online. The form will ask you to detail your personal information, as well as the details of your method of bidding (telephone, proxy or internet), and the lot number(s) of the properties you are interested in bidding on. This form must be completed in advance of the auction date as we will then need to verify your ID and receive your method of payment to complete your registration.
To register to bid in a Timed Auction, start the process by clicking on the ‘Log in / Register to bid’ button on the property details page. You will then be asked to register for an Auction Passport with Essential Information Group (who operate our online bidding platform) and to confirm your ID and method of payment. You will then be able to click and bid at any time 24/7 up to the end date of the auction.
What ID do I need?
When registering to bid, either for an Auction Event or for a Timed Auction, you will be asked to provide an accepted form of photographic ID as proof of your identity. The most commonly-accepted forms of ID include a current signed passport, an EU member state identity card or your current photo card driving licence.
I can’t make it to the auction. Can I still bid?
Yes, you don’t need to be available during an Auction Event to bid – provided you’ve arranged this prior to the auction. This can be done while registering to bid, as the online form allows you to specify your method bid (telephone, proxy or internet), with proxy bidding being the best option for those who can’t bid themselves. If you choose this option, you’ll be asked to name your max bid price to ensure your proxy bidder knows where to cut off bids.
Can I make an offer prior to the auction?
Yes, it is possible to make an offer prior to the auction event, as some sellers will consider accepting an offer that meets their expectations for the sale. However, these pre-auction offers can only be accepted where an unconditional contract is exchanged or a reservation fee is paid before the auction.
How can I make this offer?
You can make an offer prior to an auction by sending it to our dedicated team, who will share it with the seller and provide acknowledgement of it. Offers must be made in writing to offers@sdlauctions.co.uk. Verbal offers will not be accepted. Please keep in mind that, if you’re making an offer prior to the auction date, then any offer must be above the guide price in order to be considered.
How will I know if the details given in the catalogue change or a property is withdrawn or sold prior?
For our Auction Events, we keep an up-to-date addendum available on our website at all times. In this, you can view the lots available at the event, as well as relevant information relating to them. You should check this regularly in the run up to an auction, as any changes to a property’s status will be reflected there. Alternatively, you can make use of our email alerts system to subscribe to property news in your preferred location.
How long does it take to offer each lot in an Auction Event?
Every lot in an Auction Event varies in the time it takes to bid as it depends on the level of interest and number of bidders, however, you can generally expect bidding to last between 5 to 7 minutes for each lot.
If I am a successful bidder how much deposit do I have to pay?
The amount of deposit due for a successful bid is dependent on the method of sale on the lot you’re purchasing. Please refer to the individual property description for details.
How is the deposit payable?
When you register to bid, you will be asked to share your payment details (which will be confirmed by our team ahead of the auction). In the event that your bid is successful in securing the property, your deposit will be taken from the debit method provided. No money will be taken when you register to bid or if you are unsuccessful with your bidding.
If I am a successful purchaser when do I have to complete the purchase and pay the balance monies?
The normal completion period for an unconditional sale is 30 days after the sale and 60 days for a conditional sale. There can be exceptions to these rules, however, so you should always inspect the legal pack to confirm this as the Special Conditions of Sale may state otherwise.
Are there any further costs to pay in addition to the sale price?
Yes, and these vary depending on the method of sale associated with the property and the country in which you are purchasing. These differences are listed below. Please also note that the reservation fee does not contribute towards the purchase price, and that any further additional costs, which are payable in addition to the purchase price, will be included within the Special Conditions that are attached to the Contract.
To make sure you are fully aware of all associated costs, we strongly advise that all prospective purchasers inspect the legal pack thoroughly themselves and request a legal representative review it too.
- Unconditional: On the fall of the hammer, the successful bidder will be legally bound to purchase the property. The successful bidder must immediately exchange contracts and pay the applicable deposit and Buyer’s Fee stated on the property description, both of which are non-refundable. The deposit contributes to the purchase price. The Buyer’s Fee does not contribute to the purchase price. Completion must take place usually within 30 days, unless the Special Conditions of Sale within the legal pack state otherwise.
- Conditional: On the fall of the hammer, the successful bidder will enter into a reservation agreement with the seller. This agreement confers an exclusivity period of 60-days on the successful bidder, in which to exchange contracts and complete the purchase. The non-refundable Reservation Fee will be payable to us immediately on the fall of the hammer, the amount of which will be stated on the property description. This fee does not contribute to the purchase price. The deposit will be payable later on exchange of contracts via your solicitor. You must make every effort to exchange contracts of sale and complete the purchase within the 60-day exclusivity period, unless the Special Conditions of Sale within the legal pack state otherwise.
If I do not complete the sale are there any penalties?
Yes, should you not be able to complete the sale after making the successful bid, you will lose your deposit and buyers or reservation fee (whichever is applicable to the lot in question). In addition to this, the seller may sue you for the balance owed and any further losses caused.
Looking for more information about the auction buying process? Head over to our complete Buyer’s Advice Hub for more guidance.