Our Guide to Buying Property at Auction
Buying a property at auction has many advantages, from speed, with an immediate exchange of contracts and the advantage of no gazumping or gazundering, to the diversity of lots you'll find within our competitively priced auction selections—many of which may never come to the private treaty market.
Clive Emson Auctioneers holds eight traditional online auctions each year, giving everyone the opportunity to bid on hundreds of lots from the comfort of their home, anywhere in the world.
Each auction offers a wide variety of land and property, so whether you are looking for your new home, your first or next investment, a new trading location, or somewhere to graze your animals, an auction could be a great place to start your search.
Previously years ago, auction sales were open only to cash buyers and focused solely on professional investors and developers. However, as interest and access to property auctions have broadened, this purchase process presents a favourable and expedient solution for everyone, from first-time buyers to DIY enthusiasts and homebuyers searching for a home a little out of the ordinary.
Buying at auction can be a simple process, but you must ensure you have done all your due diligence and taken independent legal advice prior to bidding. We’ve written a guide to talk you through how to buy a property at auction in the UK.
Key Takeaways
1. Buying a property at auction is significantly faster than the conventional property purchase process, enabling you to complete in as little as 20 days.
2. Professional auctioneers manage all property auctions, avoiding potential complications, such as gazumping after the sale price has been agreed.
3. Pre-registering for an auction, downloading the legal pack, and arranging your financing are all important steps in getting ready for a prompt, secure auction purchase.
Understanding the House Auction Sales Process
Property auctions follow a set process, and you can review properties due to be sold in an auction up to around a month before the date. This gives you plenty of time to download and review the legal pack, arrange a viewing, and decide on the amount you might wish to bid.
Once the auction starts, pre-registered bidders are invited to submit their offers and can see the total amount bid thus far. This transparency means sellers can watch the auction as it progresses, and buyers can make informed decisions about whether to submit a further offer.
The auction has a confirmed start and end time and often has flurries of activity close to the ending point. Sellers normally set a reserve, which is the minimum they are prepared to accept, so provided the highest bid exceeds this value, the auction will have been successful.
At this stage, the highest bidder enters into the purchase transaction and pays the deposit.
How to buy a property at auction with Clive Emson
1. View Available Lots
Use our ‘current auction’ tab or lot search to view the auction details which may be of interest to you. You can then click on viewing information; register and download legal documentation as well as register to bid. (Please note that our online bidding platform requires Google Chrome to operate fully).
2. Create an Account
Creating an account with cliveemson.co.uk will
allow you access to the legal documentation of any Lots you might be interested
in as well as enabling you to arrange viewings. Once logged in to your account
you will be able to see any Lots you may have bookmarked and the details of confirmed
viewings. If you intend to bid you will need to
create an account with our online bidding partner.
3. Arrange a viewing
Information regarding viewings will be displayed on each individual Lot details.
Prospective buyers view all lots entirely at their own risk and neither the auctioneers, joint auctioneers or the sellers take responsibility for any damage or injury, however caused. It is advisable to wear appropriate footwear and clothing as some buildings, particularly those for refurbishment, may have uneven floors or even missing floorboards! Please also bring a torch as the electricity is often not serviceable for safety reasons.
Vacant Lots - Where we conduct internal viewings, they are ‘block’ viewings at specific times and dates (as applicable). They normally last for around 15/20 minutes, so it is important for you to be punctual as our viewing staff often have tight schedules. Potential buyers arriving late may only have limited viewing time or miss the time slot all together.
You can either ‘book in’ by calling us or if easier you can ‘book in’ on-line. We will need you to confirm the following information to us:
1. Your full name
2. Address
3. contact number
4. email
Tenanted Lots - Where a property is let, we will endeavour to carry out a walk round video, which will be available to view under each individual lot or via our YouTube channel. Interested parties are asked not to contact Tenants direct and to respect their privacy at all times.
Once a Lot has been sold there will be a charge of £75, inclusive of VAT, per visit, if we are asked to conduct further viewings for any reason prior to completion.
4. Review Guide Prices vs Reserve
One of the common questions we are asked is “What is the difference between Guide Price and Reserve?”
Guide Prices are published on the marketing material and provide an indication of each seller’s minimum expectations. They are not necessarily figures which a property will sell for and may change at any time prior to the auction.
Unless stated otherwise, each Lot will be offered subject to a Reserve (a confidential figure prior to the auction, below which the Auctioneer cannot sell the Lot during the Auction). We expect the reserve will be set within the guide price range or no more than 10% above a single figure guide.
Please check our website regularly in order to stay fully informed with the up-to-date information.
*Plus Fees
Other non-optional fees may be payable by the buyer in addition to the bid price – these should be included in the Special Conditions of Sale or Revised Special Conditions of Sale (as applicable).
5. Read the Legal Documentation
Select the Legal Documentation tab on the lot details and click to download (or register if not currently available). The Legal Documentation is provided by the seller’s solicitors or Licenced Conveyancer. Clive Emson Auctioneers cannot comment or advise on the contents. We host this on our website for the ease and convenience of prospective bidders/buyers.
Don’t abdicate your responsibility – do your due diligence and do all that a prudent purchaser would do including taking independent advice before bidding.
All lots are sold in accordance with the RICS Common Auction Conditions, together with the Special Conditions of Sale, applicable to the individual lot. Both of which are available to download from our website together with the remainder of the legal documentation, which can include title documents, leases, searches, etc, free of charge, following a simple registration and log-in with your details.
Why do we need your details?
If we receive changes to the legal documentation or additional information, we can email you to advise.
Legal documents are also available by post, (upon pre-payment of copying charges), or inspection at our offices (by prior arrangement).
Check the Addendum.
Occasionally changes need to be made to the auction particulars/lot information. Before bidding it is essential to view the Addendum, as it will form part of the legal documentation. Click here to view the addendum which will be uploaded to our website the morning of the auction.
Useful websites
A lot of up to date information will be available on the Lots however here are some useful links
- Planning Permissions, plans and other planning information may be downloadable from the relevant Local Authority’s website.
- All properties can be checked for their listed status through the Historic England website by clicking here
- Council Tax Bands - click here
- EPC Register - click here
- Flood & Erosion – click here
- Coalfield or Mining areas – click here
- Footpath map – click here
- What3words – www.what3words.com - hopefully this will help our customers locate some of the harder to find lots in our catalogue. >
6. Review Measurements and Plans
Any measurements quoted are approximate and may have been scaled from architects, Land Registry or Ordnance Survey Plans. Each Lot will be sold in accordance with the Title Documents as the Location Plans shown in the catalogue are for identification purposes only and specifically excluded from the contract.
Prospective Buyers should make their own site inspections and investigations regarding the accuracy of all measurements given in the catalogue and marketing material, making any necessary pre-contract enquiries prior to bidding.
7. Consider Pre-Auction Offers
Unless we have been instructed to the contrary by the seller all pre-auction offers above the Guide Price figure will be submitted to the seller for their consideration. The seller may instruct us to consult other parties to see if they also wish to submit a bid.
Offers must be in writing and any offer will be assumed to be your best and final offer. We cannot guarantee that you will be invited to increase your bid in the event of an alternative satisfactory offer being received prior to exchange.
If your offer is accepted, you must be able to exchange contracts immediately providing the full deposit and Administration Fee, all in accordance with the legal documentation.
For the avoidance of doubt, the lot will remain available until exchange of contracts has taken place.
8. Seek Professional Assistance
If you are intending to bid, you are strongly advised to do all that a prudent purchaser would do including taking independent advice on the legal documentation prior to bidding.
Finance should be arranged before the date of the Auction and any valuation/survey required by your lender should be completed before you bid.
If you are a successful Buyer, please check the Special Conditions of Sale regarding your responsibility to insure the property.
Prospective Buyers are required to make all their own investigations to satisfy themselves as to the condition of all Lots and make any necessary pre-contract enquiries prior to bidding. If you are the successful Buyer then the Contract is binding on the fall of the electronic gavel (when the timer reaches zero)
How to Register and Bid on a property
1. Register to Bid Online
Select the ‘Online Bidding’ tab on the main Clive Emson Auctioneers ‘home page’. From here you will see to two boxes, ‘Login’ and ‘Register’ (Please make sure you have accepted ‘Cookies’ as this sometime hides the Register tab).
Alternatively click here to register.
You will be asked for your name, email address, telephone number and to create a password. These will be your new login details for the online bidding element of our website.
Now logged in you will need to go to the tab marked ‘Dashboard’ to complete your registration. When in the dashboard you will see four options on the left-hand side of the page, they are;
- Profile
- Identity Verification – Passport or Driving Licence No.
- Payment Details – Credit/Debit Card
- Solicitors Details
Once you have completed these four sections, you should see on your ‘Dashboard’ green rings each with a tick. Congratulations you are now registered to bid. Good luck and happy bidding.
2. Verify your identity
When registering to bid online the ID provided is securely stored with the online bidding platform. We are unable to access these ID documents and therefore in addition to the Identity Verification used to register to bid online all successful Buyers will be required to provide the full names and address of the Buyer for Auction Contract purposes, the Bidders details (if these are different from the named Buyer) and the Solicitor/Legal Representative. In compliance with the Money Laundering Act all Buyers are required to provide photographic identification and proof of address.
Buyers must present the following documents:
- photographic identity document such as a current passport or UK driving licence and
- an original utility bill, council tax bill, building society or bank statement or any other form of identity document (with the exception of a mobile phone bill or credit card statement) that has been issued within the last three months and that provides evidence of residency at the correspondence address.
If the Bidder is acting on behalf of another party, they will be required to provide the documents detailed above for both themselves and certified copies for the named Buyers for whom they act, as well as providing a valid letter of authority from the Buyers authorising them to bid on their behalf. If the bidder is acting on behalf of a company, the above documents will still be required, together with a copy of the Certificate of Incorporation and identification for anyone with a 25% share or more.
3. Enter Payment Details
At Registration you will be asked to enter credit/debit card details for the payment of the ‘holding deposit’ if you are the successful bidder.
When the timer reaches zero (which indicates the fall of the electronic gavel) the pre-authorised holding deposit of £5,000 will immediately be taken from the credit/debit card supplied when registering to bid online.
Following your successful bid, you will then be contacted by a member of the Clive Emson team for the balance of the full deposit, which is 10% of the purchase price (If the purchase price is less than £30,000 then a minimum deposit will be payable) together with the appropriate administration fee per lot.
The balance of the deposit and administration fee is due within 24 hours and is payable by bank transfer.
An email confirming your purchase along with our Client Account details will be emailed to you following the auction.
We have a primary duty to our Clients (the Sellers) and reserve the right to immediately re-offer any Lot if the deposit conditions are not strictly adhered to in accordance with our Conditions of Sale.
4. Pay Administration Fee
An Administration Fee is payable at the same time as the deposit for each Lot purchased. The administration fee will be added to the sale price on the following scaled increments and includes VAT;
Up to £29,999 = £750
£30,000 to £99,999 = £1,250
£100,000 to £249,999 = £1,750
£250,000 to £499,999 = £2,250
£500,000 to £749,999 = £3,500
£750,000 and above = £5,000
Solicitors Details
We will need your solicitors/licenced conveyancers details as these will be added to the Memorandum of Sale (Part of the auction contract of sale)
On Auction Day
Bidding
Log back in when the Lots go ‘live’ and you will see the bidding box. The bidding box will show you the countdown timer, current bid and whether the reserve has been met.
Proxy Bidding
Don’t forget we’ve introduced automatic maximum bids to give you a smoother auction experience. You can now enter a maximum amount that you’re willing to bid on a property – automatic bids will then be placed incrementally so that you’re the highest bidder – up until your maximum limit. Proxy bids can only be placed once bidding has gone live.
What happens if someone else places the same maximum bid as me?
In the case where two or more people have placed their maximum bids for the same amount, the earliest bid placed will have priority and will be regarded as the highest bidder.
I’ve placed my bid, why have I been outbid immediately?
If your bid is immediately outbid, it means that another bidder has a higher maximum bid set up. You will need to increase your maximum bid if you wish to win the auction.
Can the Agent or Bamboo see a buyer’s maximum proxy?
No. Your maximum bid is strictly confidential to maintain the integrity of the auction.
Is there a reminder of what my maximum bid is?
Yes. If you are bidding on the main online auction website, you will see your maximum bid on the banner at the top of your screen. If you are bidding, using the bid button, you will see your maximum bid below the current bid.
You will also receive an email confirming your maximum bid amount.
Proxy bids can only be placed once bidding has gone live.
Auction Contracts
Entering a binding contract - On the fall of the electronic gavel the highest Bidder at or above the reserve is contracted to buy. The £5,000 Holding Deposit is taken immediately following the successful purchase. You will then be contacted by a member of the Clive Emson team for the balance of the full deposit, which is 10% of the purchase price (If the purchase price is less than £30,000 then a minimum deposit will be payable) together with the appropriate administration fee per lot.
The auction contract including the signed Memorandum of Sale (which formalises in writing your purchase) will be sent to the sellers solicitors and a duplicate sent to you and your Solicitor or Legal Representative. You should also insure the property, if appropriate.
Completion – the standard completion is 20 business days after exchange, but this may be varied in the individual Special Conditions of Sale, available prior to bidding and part of the legal documentation.
The Auctioneer is legally authorised to sign the Sale Memorandum on behalf of both the Buyer and Seller. We reserve the right to immediately re-offer the Lot if the deposit conditions are not strictly adhered to in accordance with our Conditions of Sale.
After the Auction
Unsold Auction Property Lots - Still Available
Sometimes a lot may not sell. It could be for a variety of reasons, but you should still be able to view the auction details and download the legal documentation for the unsold auction property Lots from our website. Under each lot it should state the minimum price that Lots may be available.
Post auction offers will be submitted on the basis of:
- An immediate exchange of Auction Contracts.
- It is your best and final offer.
- You have read the legal documentation and made all your enquiries and taken independent legal advice.
- Acceptance by the Seller.
- Until an exchange of contract we are duty bound to submit further offers for the sellers consideration.
To make an offer on an unsold Lot please give us a call.
Modern method vs Traditional Property Auction: Which Is Right for You?
Clive Emson holds traditional auctions, and the contrast between a modern and traditional auction is unrelated to whether an auction is held in person or online in an auction saleroom.
Instead, a traditional auction is unconditional, with defined t timeframes for completion, and interested bidders can see what other parties have offered. When the auction ends, the deposit, normally 10% of the purchase value, is paid immediately.. The balance is typically payable within 28 days, and any variances in that schedule will be shown in the auction particulars.
Modern auctions are conditional and take longer to complete. They offer a little more flexibility for the buyer but extended timeframes for the seller. These auctions can last as long as 2 months, with the winning buyer paying a reservation fee of roughly in excess 5% + VAT, which covers the auctioneer's fees and other administrative charges.
The process usually gives the buyer 56 days to finalise the transaction.. Having more time might make it easier to arrange mortgage financing, but there is an added risk for both buyer and seller, as something could stall the process or lead to one party or the other backing out, along with the potential loss of the reservation fee.
The Appeal of Property Auctions for Sellers
Property owners choose to sell at auction for myriad reasons, often primarily because they are assured that they will be able to sell quickly and that the process is straightforward, with assistance from an experienced team of auctioneers.
Owners might, for instance, be keen to sell quickly because they have an inherited home that they do not wish to live in, need to sell promptly to release financing for other projects or expenses or be selling as part of a separation where all parties want to finalise the sale as soon as possible.
In other cases, properties are sold at auction because they are complex to sell in different environments. That could be linked to structural improvements that mean a conventional mortgage product might not be available or because a property needs renovation or modernisation.
Fixed timeframes add to the appeal, where the sale completes quickly and efficiently, with defined dates by which the auction will start and end, the deposit will be paid, and the balance will be remitted to the seller.
Maximising Your Chances of Being the Winning Bidder at a Property Auction
Auction sales can often become competitive, with several interested bidders vying to secure a lot. The best advice before auction day is to establish a budget based on your financing position and the amount you are prepared to pay for the property. This approach will prevent you from bidding over your maximum budget.
Remember, when the hammer falls, the highest bidder enters into a legally binding transaction.
If you have your heart set on a property in a forthcoming auction, you can improve your prospects of being the winning bidder by:
Having all your documentation ready to go – that includes proof of your address, and a form of photo ID. Registered bidders undergo a verification process and might have already provided this information.
Getting your financing and deposit in place. The norm is to pay a 10% deposit immediately upon completion of the auction, so you will need to establish how you intend to cover this cost. If you are financing an auction property purchase, you should have your agreement in principle or other paperwork with you.
Creating a bidding strategy with a clear maximum – being prepared to stop bidding if the price goes beyond your threshold is advisable.
If you are not the winning bidder, it is worth remembering that there is always another auction, and we often speak with buyers looking for a renovation project, investment opportunity or residential home within a set of specific parameters. Registering your details with us and keeping pace with new lots may mean you discover another property that is exactly what you are looking for.
Reviewing the Advantages and Drawbacks of Buying an Auction Property
Property auctions present a great way to compare rare, unusual or hard-to-sell properties that you might not come across elsewhere – you might, for instance, be keen to find a home in your chosen area that is available at a lower market value because it needs modernisation.
While not every auction property is a renovation project, the diversity of homes, commercial units and plots of land that come to auction gives you a much wider choice of properties.
Buyers also prefer property auctions since:
The process is transparent – there are no closed or sealed bids, nor are you at risk of being gazumped by another buyer submitting a higher offer or the seller changing their mind about the sale.
Auctions are a level playing field, where you won’t be expected to compete on any parameter other than price to secure the property.
Properties sold at auction complete quickly, without the delays so common in private treaty sales, which can take several months, rather than weeks, to finalise.
There are various financing options you might consider, and there are a significantly larger number of mortgage products available that can fund a property purchase at auction compared to previous years.
The downsides may be that there is no certainty that you will be the highest bidder and that once the auction ends, you need to be prepared to move quickly with the deposit and balance payments. We’d also reiterate that as a buyer, you should enter into an auction with clarity about what you are prepared to bid, with no doubt that you might change your mind.
For more information about buying a property at auction, for access to the lots currently scheduled in our next auction, or to register as a bidder, please contact the Clive Emson team or visit our website.
Good luck on the day and we hope you are successful.
If you are unsure of any aspect of the registering to bid or bidding/buying process, then please don’t hesitate to call – we will be delighted to assist.