How to Buy a house from a property auction in 2023

How to Buy a house from a property auction tips & guide from the British Landlords Association - The BLA a free national landlords association.

Guide buying from a property auction
This Guide will help you how to buy a house, flat or any property from a UK property auction house.

First, select an area you are interested in, then find out what local auction houses exist for that area. The national auctions will cover all of England & Wales. The leading national ones are:

Barnard Marcus Auction house
Harman Healy Auction house
Allsop Auction house
Stretton’s Auction house

Research the properties and auctioneers in the area you want to buy

You can check out the British Landlord Association full list of all the UK property auction here.

Check the value of the house or flats you are interested in by using Zoopla, Rightmove, so you have a reasonable idea of what the average price of a property you are interested in is worth.

You can also visit a website nethouseprices where you can research the properties sold on any road or street in the UK. This website is beneficial as it may even reveal what price a property sold for last time, the exact property you are interested in an auction house.

Arrange viewings and ask questions
It vital you go and see the property before bidding and take a builder friend with you, someone who has building experience. If the property needs to be updated, at least you will have some idea, the likely costs for the work required.

Take plenty of photographs. Ask the auctioneer or rep who is doing the viewings plenty of questions. The critical question is how much interest you have had in this property etc.

Auction particulars

Nearly all auctioneers publish brochures, and the brochure is available online too. The online brochure and the hard copy do not contain the same depth of information, look at both versions.

Buying from an auction you need to act fast
From the date the brochure is released, the auction date is usually 14 days, so you do not have too much time to act.

You must register online with the auctioneer, once you have done this, obtain the “Legal Pack” download this. The legal pack is usually free and is a vital part of buying from the property auction house.

Check regularly on any updates

It is common for the particulars of a property to be amended, the guide price adjusted so you should ensure you keep checking and speak to the auctioneer to see if any changes have been made.

Check to see if there is an Addendum for the property/lot you are interested in. Sometimes a property maybe is withdrawn or sold before the auction, so recheck the day before the auction date to avoid disappointment.

Stick to your budget

You must calculate what you are prepared to pay for the house or flat you are interested in and stick to it.

It is very tempting to offer just a tad more and more and before you know it you have paid too much. It is very easy to get carried away when bidding; it is important you are disciplined, have a close friend or family member with you when bidding this can help.

Check the Auction small print

Each auction house functions differently, and their terms & conditions vary so do the way they work. You must check the terms & conditions and all other auction documents, including the legal pack of the house or flat you, may be interested in.

Be Punctual

Buying from a property auction involves research and a lot of work before the auction date, you must allow plenty of time to get ready so that you can bid, do not leave things to the last minute.

Due to COVID-19 most auction houses operate bidding electronically, so you may want to consider a backup should your internet connection fail. Mobile phone tethering etc. is worth considering as a back.

What is the difference between guide and reserve price?

Guide price and reserve are not the same; you must understand the difference between the two.

A guide price is a figure set to lure people into the auction hall. The Guide is rarely the same as the reserve price. The Guide price on average is 10% less than the actual price the seller wants. You must factor this into your calculations.

Make sure your bid is clear and concise

Currently, due to COVID-19 most if not all auction houses operate bidding online. You must ensure you understand the online process and familiarise yourself with the auction house website.

Speak to the auction house staff to run through the online process so that you can bid properly using the online facility.

Ordinarily, before COVID-19, some auction houses will give you a paddle or something similar so that the auctioneer may quickly identify when you bid.

All auctioneers have a few methods of bidding for a property. You should contact the auctioneer to check the options.

https://thebla.co.uk/how-to-buy-a-house-at-auction/
https://nethouseprices.com/

Membership with the British Landlords Association is free, join us today! - https://thebla.co.uk/membership-options/

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