Buyers Guide

As a private buyer there are a number of key issues you need to consider before making your first serious bid at a property auction. If you do decide to try your hand at buying a property at an auction, these tips will serve you well.

The Buyer’s Guide to Purchasing Property at Auction

Buying property at auction is an exciting and efficient way to secure your next home or investment, but it requires preparation and understanding. Here’s everything you need to know to successfully navigate the auction process and make an informed purchase.

Before the Auction

Property Search

Our auctions feature a diverse range of properties, from residential homes to land and investment opportunities. A catalogue for each auction is released 4 weeks before the event, however, sales brochures which include important property details, photos, floor plans, and more are available with the onset of marketing.

Property Viewings

Before placing any bids, it’s essential to conduct your own research. We highly recommend viewing the property yourself to ensure you’re fully informed about the lot you’re interested in. We hold group viewings for most properties so please contact Dawsons Auction House for the next available dates.

Arrange a Survey

To gain deeper insights into the property, you may want to instruct a surveyor. Simply ask them to get in touch with our auction office, and we’ll coordinate access for the inspection. 

If you’re considering a mortgage, it’s a prerequisite of your lender to arrange a survey for the property. If financing is required, our team can guide you through the process. You need to ensure you have a formal mortgage offer, prior to bidding not purely rely on an agreement in principle from your lender or broker.

The Legal Pack

Each property has a Legal Pack that includes key documents such as title deeds, leases, searches, and special conditions of sale. Always read these documents thoroughly and seek legal advice before bidding. Legal packs are available for your review prior to the auction.

Organise Your Finances

When buying at auction, you’ll need to pay a 10% deposit immediately after the sale. Plus, the buyer’s premium purchase fee as set out in the contract of sale and sales brochure. The remaining balance must be settled within the typical completion period of 28 days (unless specified otherwise). If financing is required, our team can guide you through the process.

Guide Prices and Reserves

The guide price reflects the vendor’s minimum expectation, but please note, it’s not always the final selling price. Each property is sold subject to a reserve price—usually within the guide price range. This is a confidential figure between the seller and auctioneers.

Register for the Auction

Registration is mandatory to participate in the auction. We operate under strict Money Laundering Regulations, and this is required to participate. You’ll also need to have your solicitor’s details ready. You’ll need to register with our Auction House and provide:

  • Two forms of ID - such as a passport or driving licence,
  • Proof of funds

Once registered, you’ll be ready to bid!

On Auction Day

What to Bring

If not already done so, ensure you bring two forms of ID, such as a passport or driving licence, along with proof of residency. We operate under strict Money Laundering Regulations, and this is required to participate. You’ll also need to have your solicitor’s details ready.

Bidding Options

We offer three ways to bid at our auctions:

  • In-Person Bidding: Attend the auction and raise your hand to place a bid.
  • Proxy Bidding: Submit your maximum bid, and we will bid on your behalf.
  • Telephone Bidding: Bid via phone, with one of our team members acting as your representative.

You can also submit pre-auction bids, though they’re typically subject to competitive bidding in the auction room.

How Bidding Works

The Auctioneer will introduce each property, outline any changes, and invite bids. Bidding progresses in increments set by the Auctioneer. When you want to place a bid, simply raise your hand clearly. If you’re the highest bidder once the auctioneer says, "Going once, going twice… Sold!"—the property is yours!

After the Auction

What Happens When the Hammer Falls?

Once the auctioneer brings down the gavel, a binding contract is formed. You’re legally committed to the purchase. You’ll need to pay a 10% deposit plus the buyer’s premium purchase fee as set out in the contract of sale and sales brochures. Payment can be made via bank transfer or debit card (no cash or credit cards) or a cash payment of £5,000 (maximum).

Exchange of Contracts

Immediately after the auction, we’ll ask you to sign two copies of the Memorandum of Sale. One copy goes to your solicitor, and the other stays with us. You’ll also receive a hard copy of the Legal Pack for your solicitor.

Completion

The standard completion period is 28 days from the auction. On completion day, the remaining balance is due. Ensure you’re prepared for this and liaise with your solicitor to finalise all details.

Insurance

From the moment the gavel falls, the property is at your insurable risk. It’s recommended that you arrange buildings insurance immediately after the sale, as per the special conditions of sale in the Legal Pack.

What if the Property is Unsold?

If a property doesn’t sell during the auction, don’t worry. Register your interest with the Auctioneer or Dawsons Auction team in the room and we will begin negotiations to secure a deal.

Get Ready for Your Auction Experience

Buying at auction can be fast, efficient, and rewarding, but it’s essential to do your homework. Make sure you’ve researched the property, reviewed the legal documents, arranged your finances, and prepared for auction day.

Contact us to speak to one of our expert team members. Happy bidding!

For further information please contact our Auction Department on 01792 478903 or email auction@dawsonsproperty.co.uk