Buying Property at Auction
Whether you’re interested in commercial or residential properties, auctions are a great way to buy property quickly and give you the opportunity to get them at a fair price.
Below we delve into how to buy property at auction and what you need to sort out prior to the day.
When it comes to buying property at auction, it’s important to be prepared and have everything ready before the auction. To make things easier for you, here is the process broken down step-by-step.
1. Register to bid
If you’re interested in bidding on a property, you’ll need to register to bid at our auction. Head over to How to Register to Bid which takes you through the process.
2. View the property and consider arranging a survey
Where possible, you should always inspect the property before bidding. Any viewing arrangements are available on the lot page. To check the structure or condition of the property, you are advised to arrange a survey.
3. Read the legal documents
The legal documents relating to the lot are available to download on the lot page. Please remember that you purchase subject to all legal documentation and the terms of the sale whether you have read them or not. Allsop cannot advise on the contents of legal documentation. Please always seek qualified legal advice.
4. Check the addendum
Occasionally changes need to be made to the lot information. Before bidding it is essential to check these as they form part of the auction contract. Please click on ‘View Addendum’ on the lot page. If you have added a lot to your ‘watchlist’ you will automatically be notified of any addenda. Changes can be made up to and including the day of the auction.
5. Read the Conditions of Sale & Notices
All lots (unless otherwise stated) are sold subject to the Online Auctioneer terms, the RICS Common Auction Conditions of Sale, the Form of Purchase Agreement and any Special Conditions of Sale or Articles of Roup (Scottish properties). We strongly advise prospective bidders to read all our Conditions & Notices. It is very important to appoint your own solicitors and follow their independent legal advice.
Please note that some Special Conditions of Sale detail the seller's extra costs payable in addition to the purchase price.
6. Get your funds in order
When you register to bid you are required to arrange a bidder security. If you subsequently purchase a property you are required to “top up” this payment and transfer the balance of the 10% deposit to the Allsop LLP Client Account. The Allsop buyer's fee is deducted from the bidder security payment if you are the purchaser.
What is the bidder security and how do I pay it?
A bidder security payment authorisation is required for each lot you wish to bid for. This is detailed on the payments page when you register and an amount will be held on your debit card via our secure online payment method.
The amount required is as follows:
- Commercial Auctions - £10,000 per lot and inclusive of the Allsop buyer’s fee*
- Residential Auctions - per lot and inclusive of the Allsop buyer’s fee*:
- Guide price: £1 - £49,999 - bidder security payable = £2,000 per lot
- Guide price: £50,000 - £149,999 - bidder security payable = £5,000 per lot
- Guide price: £150,000 and above - bidder security payable = £10,000 per lot
What is the Allsop buyer's fee?
There is no fee payable to bid. However, if you are successful in bidding, the Allsop buyer’s fee will apply. This fee applies to each lot purchased in the auction. The buyers’ fees are as follows:
- Commercial Auctions:
- All lots: £1,000 excluding VAT
- Residential Auctions:
- Lots sold for £10,000 or more: £1,750 including VAT
- Lots sold for less than £10,000: £300 including VAT
7. Arrange finance / mortgage
If you need to raise finance or arrange a mortgage it is important that you obtain an offer from your lender in principle before the auction day. Most banks and building societies will wish to instruct a surveyor before making a mortgage offer. You will typically need to complete your auction purchase within 20 working days of the auction. You should discuss this with your lender to make sure that this will not be a problem. Please note that completion periods do vary and you are advised to refer to the Special Conditions of Sale for confirmation.
8. Purchasing lots prior to auction
In some instances, a seller may consider offers prior to auction. If applicable, offers must be submitted in writing via email to the Allsop contact on the lot page. If your offer is accepted, you must pay the 10% deposit, plus the Allsop buyer’s fee and be ready to exchange contracts immediately. The easiest way to register your interest in any lot is by downloading the legal documentation.
9. Check availability
We strongly advise you to check the website the day before the auction to make sure that the lot you are interested in is still available.
How to Register to Bid at Auction
If you’re interested in bidding on a property, you’ll need to know how to register for auction.
FAQs: Buying a Property at Auction
Lots are available to view on our website or on the Allsop App. We do not print hardcopy catalogues. If you want a hardcopy of a particular lot, you can print the PDF of the lot information from the lot page.
It is strongly advised to view the property you’re interested in before bidding. Details of when you can view a property can be found on the lot page. Some require you to register for a viewing slot, while others have open viewing times meaning you can just turn up during the specified hours. If in doubt, please contact a member of the team.
Many of our auction properties do offer virtual tours. If so, you will find a link on the lot page.
If there isn’t a virtual tour, it is worth contacting a member of the team to ask if any additional internal photos are available.
If the property you’re interested in isn't sold, you can still try to buy it by making a post-auction offer. To make your offer, please call the relevant Allsop contact on the lot page.
If you have used the online payment authorisation, we will request all "holds" to be released within 3-5 working days of the auction day. If for any reason you cannot access your funds after this time please contact your bank directly, as some banks take longer to process the releases than others.