Buying Property at Auction - Before the Sale

Buying a house at auction usually takes place at a swift pace, and so you need to be well organised to ensure you have carried out all the important checks before the sale takes place.

Completion is usually 28 days after the sale, so you generally shouldn't think about buying a property at auction if your purchase is dependent on the sale of another property on which the contracts have not been exchanged.

Before the Auction

1. Get a copy of the auction catalogue from the auctioneers; this will often contain more background information on the Lot. The description will normally form part of the contract between you and the vendor, as will the General Conditions of Sale.
2. Check the guide price for the Lot in which you are interested. This will often serve as an indication of the reserve price set by the seller and you should make sure that this price is well within your budget.
3. Take legal advice about any Special Conditions of Sale. These might include particularly short completion dates (28 days is standard) and contributions to the seller's costs, often expressed as a percentage of the sale price. Other provisions may exclude rights you may otherwise have, or impose additional liabilities.
4. Make an appointment to view the property; most auctioneers have specific times and dates when property can be inspected.
5. A survey result is rarely provided by the vendor, so if you wish to proceed, you will need to arrange for a survey to be undertaken prior to auction. You will need to arrange access to the property with the auctioneers. The survey will advise you on the condition and value of the property. It may also indicate any costs you may face over repairs, suggest certain enquiries you should make or other specialist reports you should obtain. Make sure you have this report at least week before the sale.
6. Ask the auctioneer if they have information relating to the property, as this may reduce your costs considerably. Otherwise, you need to instruct your chartered surveyor or solicitor to make searches regarding planning, building regulations, highways and any other factors which might affect the property directly or indirectly, such as new roads or redevelopment.
7. Ensure the title deeds are inspected for any onerous covenants or restrictions.
8. Decide how much you will be willing to pay for the property, taking into account the survey results, and all additional fees such as stamp duty.
9. If you require finance, arrange this in principle before to the auction. Make sure that your lender is aware that a valuation will need to be undertaken at short notice, and is capable of arranging this.
10. Check what methods of payment the auctioneer will accept for the property. You will usually be required to pay a 10% deposit subject to a minimum specified in the catalogue immediately after the sale and should therefore have sufficient funds to cover this.