Buying Property at Auction

Buying Property at Auction

Buying at auction is popular for one simple reason: speed. Auction properties are often unusual, offer development potential, or fall outside the scope of traditional sales, making them attractive to investors and buyers looking for opportunity.

At Bid Property Auctions, we aim to make the auction process clear, transparent, and fully explained, so you can bid with confidence.

---

How the Auction Works

When the auction goes live, bidding takes place online in real time. If the reserve price is met or exceeded, contracts are exchanged immediately on the fall of the hammer.

• Exchange of contracts: on the fall of the hammer
• Completion: typically 20 working days, unless stated otherwise in the special conditions of sale

Once the hammer falls, the sale is legally binding, so it is essential that all checks are completed in advance.

---

Bidding Options

We offer several ways to bid, depending on what suits you best:

Online Bidding
Once registered and authorised, you can place bids online during the live auction.

Telephone Bidding
A member of our team will call you before your lot is offered and bid on your behalf while you remain on the phone. If contact is lost, they are authorised to continue bidding up to your agreed limit.

Proxy Bidding
You can set a maximum bid in advance, and a member of our team will bid in person on your behalf up to that amount.

---

Due Diligence – What You Need to Do

Before bidding, all buyers should carry out full due diligence. This includes:

• Reviewing the auction catalogue and viewing the property
• Instructing a solicitor or conveyancer to review the legal pack
• Consulting a mortgage broker to confirm finance options and timescales
• Arranging a valuation and, where appropriate, a Level 2 or Level 3 survey
• Setting your maximum bid, factoring in fees and any works required

It’s important to note that there are costs involved at this stage, and there is no guarantee of a successful purchase.

---

Guide Prices, Reserves & Fees

Guide prices are an indication only. The reserve price (the minimum price the seller will accept) will be within 10% of the guide price.

When calculating your bid, you should also account for buyer’s fees and any additional charges detailed in the special conditions of sale.

Buyer’s Fees (including VAT):

• £1 – £250,000: £2,400
• £250,001 and above: 1.2% of the sale price

Examples:

• £300,000 sale price → £3,600
• £400,000 sale price → £4,800
• £500,000 sale price → £6,000

Buyer’s fees are payable on the fall of the hammer and are non-refundable if the sale does not complete.

---

Important Considerations

You must be able to complete within the stated timescale. Failure to do so could result in:

• Loss of deposit
• Breach of contract
• Potential claims for losses incurred by the seller

If you are unsuccessful, any deposit paid is fully refundable.