Charles Robinson

Property auctions have become increasingly popular with both buyers and sellers – whether you are an owner, occupier, developer or investor.

There can be several advantages in buying a property at auction, but it is in your own interest to be as fully informed as possible and also to ensure that the auctioneer is an accredited member of the Royal Institution of Chartered Surveyors.

Charles Robinson, Griffiths and Charles, Worcester and RICS West Midlands spokesperson, explains more about the auction process from a buyer’s point of view, and offers his top tips on what to expect:

1) Use your control

As a buyer, you are in control of deciding when to bid and how high or low you wish to go. A purchaser is able to buy the property at a price that is achieved competitively against other bidders in a transparent process, and if your bid is successful, then the property is yours on completion. The vendor cannot then withdraw.

2) Be prepared to act quickly

It is possible to buy properties quickly at auction, if you are well organised, properly advised and have the requisite financial resources. It is important to remember that when the hammer falls, this is taken as exchange of contracts and completion can be as little as 20 working days after the auction – so be prepared to move quickly.

3) Be fully informed

Ahead of the auction, try to get hold of a copy of the catalogue from the auctioneer as this will contain the lots – or properties – which will be auctioned. It can be advisable to deal with the auctioneer direct as this will ensure you have the most accurate and up-to-date information.

4) Take time to read through the available information

Make sure you are well informed and take time to have a read through general information including the important Notice to Bidders, the Memorandum of Sale and the general conditions of sale. Many auctioneers already use RICS Common Auction Conditions.

5) Contact the seller’s solicitor to get hold of key documentation

Read through the specific information relating to the lot that you are considering buying. The legal pack will be available from the seller’s solicitor and this will contain documents such as title information, searches and leasehold documents along with any special conditions of sale. It may also be possible to inspect the paperwork at the auctioneer’s office.

6) Keep in regular contact with the auctioneer

Keep in regular contact with the auctioneer so you know about any addendums or changes to the guide price, and if the lot is sold or withdrawn before the auction. It can also be worth checking what the auctioneer defines as the guide price too – for instance, they may call it “the seller’s minimum price expectation”.

Consider any addendum too, which you can get before or at the auction as this will tell you about any additions or amendments to the catalogue that have come up and might affect the sale of the property.

7) Get the right professional advice

Before you decide whether or not you should bid, make sure the information you’ve been given about the property is correct – it’s worth getting professional advice and both a valuation and an appropriate survey before you buy.

8) Get your finances in order

Make sure your finances are ready to proceed and in order, as you will need to arrange finance both for the exchange – which is normally a 10 per cent deposit and on completion.

9) Stay ahead of the competition

Once you’ve decided to bid, tell the auctioneer you’re interested in the property and keep in regular contact. On the day of the auction, make sure you arrive in plenty of time to check the addendum for any changes relating to the lots you are interested in. Also, listen out for any announcements about the lot in the auctioneer’s opening remarks.

10) If you are the highest bidder . . .

If you are successful in being the highest bidder, be prepared to complete the Memorandum of Sale and other relevant documentation in order that the purchase can proceed. You will also need to pay the deposit and supply your personal identification; sometimes a buyer’s premium is charged, but this will be mentioned in any advertising.