How to buy a houseBuying at auction

Buying at auction brings risk and excitement

Buying at auction is a much more transparent way to buy property. You’ll see other bids as they’re made, rather than having to take an estate agent’s word for them.

Be warned though, as it does have its pitfalls, such as disappointment if you’re outbid or handing over your 10% deposit to the auctioneer straight away if you lodge a winning bid.

Follow these tips to make the most of your visit to an auction:

Before you go to the auction

1 Do your research

Use websites such as Property Auctions to gather details of forthcoming auctions in your area.

2 Arrange a search

Request a brochure and study the particulars carefully, reading all the small print. Then send it to your solicitor or conveyancer and arrange for them to carry out the usual searches, enquiries and title checks. Sometimes the seller’s solicitor will carry out the searches and send a copy to your solicitor.

3 Arrange a survey

Arrange to have a survey and a valuation done and to get the results before the auction.

4 Have a look around

View the home in the normal way and be sure it is what you want.

5 Set a price limit

Fix your price limit and complete arrangements for the finance before the day of the auction. A mortgage lender will have to inspect and value the property in the usual way before they make an offer.

Don’t get carried away during the bidding. Don’t exceed your price limit. You could appoint someone else to bid for you to ensure this doesn’t happen.

Remember, if you’re outbid, you lose not only the house but the expenses of a survey and solicitor.