The Advantages of Buying Property at Auction
There are many advantages of buying property at auction which you don’t get through other methods.
We’ve created this guide to highlight the key benefits of this method and help you decide if it’s the right avenue for you.
Advantages of buying at auction
Many people choose to buy at auction because of the speed offered by this method. Buying via the private treaty route can take anywhere from a few weeks to several months, which is not ideal for those who are ready to move quickly. By contrast, purchasing a property at auction results in a much faster completion time - usually within four to eight weeks of the auction.
Buying property at auctions is straightforward.
Here are some things you need to consider if you’re thinking of bidding on a property:
- Register to bid on our website ahead of auction using a form of ID, such as a driving license or passport
- Make sure you’ve got your solicitors’ details to hand
- Be prepared to pay a deposit should your bid be successful
You can find more details about this on our How to Register to Bid page.
Transparency and equal opportunity
One of the big advantages of auctions is that they create a level playing field, whereby everyone is bidding openly and competitively at the same time.
Another advantage of buying at auction is reliability and certainty of purchase. If you’re the highest bidder, once the gavel falls, the property is legally yours.
When purchasers use the private treaty method, the buying process often gets delayed, and deals can simply fall through due to miscommunication and changes to the circumstances of those involved in the transaction. That is not the case with auctions.
If your bid has been successful, all you need to do is provide the 10% deposit on your desired property on the day of the auction and pay the rest of the balance within 20 to 30 days.
Wide range of properties
Another advantage of buying at auction is the sheer range of properties on offer, ranging from country manors to ground rent investments. You can see all available lots on our website.
Another common reason people choose to buy at auction is the wealth of keenly priced properties on offer which could be difficult to come by elsewhere. Auctions are an excellent place for those interested in value-add and change-of-use opportunities, which often result in attractive returns.
Things to consider when buying at auction
Buying at auction is thrilling and rewarding but there are a few things to keep in mind before you start.
Have your finances sorted beforehand
Since you’ll have to pay the 10% deposit straight away and the remainder not too long after, it’s best to make any financial arrangements before auction day so that you know you can make payments on time.
Set yourself a budget
Auctions can be exciting, but you don’t want to get carried away and find yourself in a bidding war spending more than you can afford. Instead, set yourself a budget for the day and stick to it.
You might not be the highest bidder
Don’t be downhearted if you’re not successful. It’s important to be realistic and go into auction knowing that you might not be the highest bidder and get the property you were interested in.
If successful, the property is yours
If you’re successful on auction day, contracts are exchanged between the seller and buyer immediately. This means that you’re both locked into the transaction, and neither party can change their mind without risking penalties. So, it’s important that you’re certain you want to buy the property you’re bidding on.
Be prepared with surveyors and solicitors
Buying at auction is much more fast-paced compared to the private treaty method. Typically, the auction catalogue will be available online three weeks before auction day, so in this time you’ll need to arrange a survey/conduct a virtual tour and have your solicitor check the legal pack for properties you’re interested in.
Why should I buy property at auction with Allsop?
Allsop is the UK’s market leader in residential and commercial property auctions, known for its high-quality service and integrity.
- Experienced auctioneers - We’ve been selling property for over 100 years meaning we know how to conduct a successful auction, with both our commercial and residential teams having an average sales success rate of over 80%
- Online auctions - We’ve been conducting all of our auctions virtually since March 2020, having made a significant investment into our online auction platform prior to the Covid-19 pandemic
- Trusted by sellers - Being the UK’s leading property auctioneer, our auction catalogues include properties across the UK meaning you have the greatest opportunity of finding the right property for you
Now that you are familiar with the auction process and the advantages of this method, read our Auction Insights for more inspiration and market intelligence.
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.