Bidding & Buying A Property At A Traditional Auction
An immediate and unconditional exchange of contracts as sold in an auction room
A traditional auction is where investment property is sold to investors by means of a competitive bidding process, this used to exclusively take place in auction rooms across the country, however now bidding is almost exclusively done via online bidding windows. Our traditional auction process is a simple and straightforward way for you to investigate, bid and potentially buy investment property.
With a traditional auction purchase, the key for you is that when the bidding ends and you are the winning bidder, you will have exchanged contracts and be paying a 10% sale deposit and a buyers fee with the completion date and additional fees laid out in the legal pack. It is your obligation to register as a bidder, prove your ID and supply a security deposit (a shadow hold on a predefined amount), it is then advised that you read the terms of the auction, the entire legal pack and view the property on-site.
If you have not viewed the property or read the legal pack, the sale is still binding and completion mandatory, if you fail to complete the sale you forfeit your deposit and buyers fee and the property is re-offered on the next available date, if the next sale amount is less than your winning bid you are obligated to pay the difference.
Traditional Auction - Your First Steps
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The first step is to ensure you have at least 10% of your maximum bid and the buyer's fee of £1,250 plus VAT. This is the minimum required to exchange contracts when buying through a traditional auction process. For example, if your winning bid is £100,000 then you will immediately pay £11,500 by card with the balance at completion.
You are best advised to both view the property on-site and read the terms of the auction and the legal pack. All the information we hold with regard to the property is contained in the property advert (on our site and all the online portals) and in the legal pack. When you buy at auction you do it without the assistance of a solicitor or surveyor, although you can seek to be advised by these professionals separately.
Your winning bid is unconditional and your deposit and buyer’s fee is not refundable should you be unable to complete, the completion date and any additional fees will also be clearly stated in the special conditions found in the legal pack.
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Understanding The Process Of A Traditional Auction Purchase
Our traditional auction sales are conducted as per the V4 Common Auction Conditions which essentially lay out the process, sale contract and terms should you win the bidding. These cover both online bidding and auction room sales and you are best advised to take the time to read these conditions before bidding. These are contained in the terms of the auction when you register a bidding account.
Before bidding you should also read our Auction Buying Guide which advises on the platform process of placing bids, such as proxy bids once the auction has begun and the closing process to ensure bid-sniping does not occur. You do not need to register to watch the auction and you will only be able to bid once you have provided a payment card. We will also need to confirm your ID before you are approved to bid, this is done by means of a Credas SMS link sent once you register your bidding account.
Should you win the bidding you will then need to select a conveyancer to act for you for the completion, you need to appoint a conveyancer within 2-working days of the auction. Access to the property after the auction is almost always only allowed with a key undertaken, the exception being mortgage valuation surveys with insured contractors.