Question 1

What is a Guide Price?

Accepted Answer

A guide price is an estimated price provided for each property in an auction to indicate its likely selling range. It helps buyers understand the potential market value of a property before bidding begins. A guide price may be shown as a fixed amount or as a price range (for example, £100,000–£120,000). Guide prices can be reviewed and adjusted at any time before the auction takes place to reflect market interest and demand. However, the most up-to-date guide price is always displayed on the property's details page, ensuring buyers have access to accurate and transparent pricing information when making bidding decisions.

Question 2

What is a Legal Pack?

Accepted Answer

A legal pack is a set of documents prepared by the seller's solicitor that contains all the legal information about the property. It typically includes the title documents, searches, special conditions of sale, and other relevant paperwork. Buyers should review the legal pack carefully before bidding, as it forms part of the contract and may affect the property's value or your obligations as a purchaser.

Question 3

What is a Reserve?

Accepted Answer

The reserve is the minimum price at which the seller is willing to sell the property. It is confidential and not disclosed to bidders. If the highest bid meets or exceeds the reserve when the lot is declared sold, the property is sold. If the highest bid is below the reserve, the property may be withdrawn or the seller may choose to negotiate after the auction.

Question 4

What is a Reserve Price?

Accepted Answer

The reserve is the minimum price the seller is willing to accept. It is confidential. If the highest bid meets or exceeds the reserve, the property is sold. If not, the lot may be withdrawn or the seller may negotiate after the auction.

Question 5

What is an Addendum/Amendment Sheet?

Accepted Answer

An addendum or amendment sheet is a document that updates or amends the legal pack or auction particulars after they were first published. It might include changes to the conditions of sale, new search results, or corrections. Bidders should always check for addendums before the auction, as they form part of the contract and can affect the terms of the sale.

Question 6

What is an Addendum or Amendment Sheet?

Accepted Answer

An addendum updates the legal pack or auction particulars after publication. It may include changes to conditions, new searches, or corrections. Bidders should always check for addendums before bidding.

Question 7

Do I need a solicitor before bidding at auction?

Accepted Answer

Yes. You should instruct a solicitor to review the legal pack and special conditions before the auction. Once the hammer falls, the sale is legally binding, so due diligence must be done in advance.

Question 8

How much deposit do I pay if I win at auction?

Accepted Answer

Typically you pay a deposit (often 10% of the purchase price) on the day of the auction or shortly after. The exact amount and deadline will be in the special conditions of sale.

Question 9

Can I get a mortgage for an auction property?

Accepted Answer

Yes, but you must have a mortgage agreed in principle before the auction. Completion is usually within 28 days, so your lender must be able to complete in that timeframe.

Question 10

What happens if I can't complete after winning the auction?

Accepted Answer

The contract is legally binding. If you fail to complete, you may lose your deposit and the seller can pursue you for additional losses. Only bid if you are certain you can complete.

Question 11

Can I view the property before the auction?

Accepted Answer

Yes. Viewings are usually arranged before the auction. It is strongly recommended that you view the property and carry out any surveys you need before bidding.

Question 12

Are auction properties always sold as seen?

Accepted Answer

Generally yes. The contract will state that the property is sold in its current condition. That is why reviewing the legal pack and viewing the property are essential before you bid.

Question 13

How long does it take to sell at auction?

Accepted Answer

From instruction to completion, many auction sales complete within 6–10 weeks. The auction event itself is typically 4–6 weeks after the property is listed, with completion often 28 days after the sale.

Question 14

What fees do I pay to sell at auction?

Accepted Answer

Fees vary. There may be an entry fee, commission on sale, and legal costs for preparing the pack. Your auctioneer will provide a clear breakdown of all costs before you commit.

Question 15

Can I set a reserve price?

Accepted Answer

Yes. The reserve is your confidential minimum price. The auctioneer will not sell below the reserve without your agreement. Setting a realistic reserve helps attract bidders while protecting your interests.

Question 16

What is a guide price and how is it set?

Accepted Answer

The guide price is the advertised indication of the expected sale range. It is set with you to attract interest while reflecting the property's value. It can be updated before the auction.

Question 17

Do I need a solicitor to sell at auction?

Accepted Answer

Yes. Your solicitor prepares the legal pack that buyers review before bidding. The pack must be accurate and complete, as it forms part of the contract when the property sells.

Question 18

What if my property doesn't sell at auction?

Accepted Answer

If the reserve is not met, the property may be withdrawn. You can then negotiate with the highest bidder, re-enter a later auction, or market the property by other means.

Question 19

Can I sell any type of property at auction?

Accepted Answer

Most types can be sold at auction: residential, commercial, land, and mixed-use. Some auctioneers specialise in certain property types; Auction Agent focuses on property auctions across the UK.

Question 20

When do I receive the sale proceeds?

Accepted Answer

Completion usually happens around 28 days after the auction. Once completion has taken place, your solicitor will receive the balance (after deducting their fees and repaying any mortgage) and transfer it to you.

Question 21

Is there a no-sale-no-fee option?

Accepted Answer

Some auctioneers offer no-sale-no-fee or similar terms. Check with your chosen auctioneer for their specific fee structure and what applies if the property does not sell.

Question 22

How is my property marketed before the auction?

Accepted Answer

Properties are typically listed on the auctioneer's website, in catalogues, and often on major property portals. This gives wide exposure to motivated buyers and investors.

Question 23

Why do investors use property auctions?

Accepted Answer

Auctions offer speed, certainty, and a wide choice of stock. Once the hammer falls, the sale is binding, and completion is typically within 28 days, which suits investors who need to move quickly.

Question 24

What types of property do investors buy at auction?

Accepted Answer

Investors often buy residential buy-to-lets, HMOs, commercial property, land for development, and properties needing refurbishment. Auctions can offer motivated sellers and transparent pricing.

Question 25

How do I finance an auction purchase as an investor?

Accepted Answer

You need finance agreed before the auction. Bridging finance, development finance, or traditional buy-to-let mortgages can be used depending on the project. Your broker or lender must be able to complete within the contract timeframe.

Question 26

Are auction properties below market value?

Accepted Answer

Not always. Some properties are keenly priced to attract interest; others reflect their condition or circumstances. Do your own valuation and due diligence rather than assuming a discount.

Question 27

What due diligence should I do before bidding?

Accepted Answer

Review the legal pack, view the property, commission any surveys you need, and confirm finance. Check tenancy status, planning, and any restrictions. Your solicitor can help identify risks.

Question 28

Can I buy with a company at auction?

Accepted Answer

Yes, provided the special conditions allow it. You will need to have the company set up and able to contract. Your solicitor can advise on the correct way to bid and complete in a company name.

Question 29

What are the risks of buying at auction as an investor?

Accepted Answer

The main risk is the binding contract: you must complete or face serious consequences. Other risks include title issues, tenancy problems, or unexpected costs. Thorough due diligence reduces these risks.

Question 30

How quickly can I rent out or develop after buying at auction?

Accepted Answer

Once you have completed (typically 28 days after the auction), the property is yours. You can then let it or start development subject to any planning or legal constraints.

Question 31

Do auctioneers offer investment lots regularly?

Accepted Answer

Yes. Many auctioneers run regular sales with a mix of residential, commercial, and land. Signing up for catalogues and alerts helps you stay informed about new lots.

Question 32

Can I bid on multiple lots in one auction?

Accepted Answer

Yes. If you have the finance and capacity to complete on more than one property, you can bid on as many lots as you wish. Ensure your funding and logistics are in place for each.

Question 33

How does the bidding work?

Accepted Answer

Bidders raise their hand, place an online bid, or use the method specified by the auctioneer. The auctioneer advances the bidding until only one bidder remains. That bidder wins the lot, subject to the reserve being met.

Question 34

What is the Buyer's Premium?

Accepted Answer

Some auctions charge a buyer's premium (a percentage of the hammer price or a fixed fee) in addition to the purchase price. This will be set out in the special conditions of sale—check before you bid.

Question 35

When do I pay the deposit?

Accepted Answer

The deposit (often 10%) is usually payable on the day of the auction or within a short period set in the special conditions. You must have cleared funds or a banker's draft available.

Question 36

How long until completion?

Accepted Answer

Completion is typically 28 days after the auction, unless the special conditions state otherwise. You must be able to complete by that date; failure to do so can result in losing your deposit and being liable for further losses.

Question 37

Can I withdraw my bid?

Accepted Answer

Once the hammer falls, the contract is binding. You cannot withdraw your bid after that. Only bid when you are certain you want to buy and can complete.

Question 38

What is in the Legal Pack?

Accepted Answer

The legal pack usually includes the title, searches, special conditions of sale, and other documents that form part of the contract. Your solicitor should review it before you bid.

Question 39

What is an Addendum?

Accepted Answer

An addendum is an update to the legal pack or auction particulars issued after the initial publication. It may change terms or add information. Always check for addendums before bidding.

Question 40

Can I bid online?

Accepted Answer

Many auctioneers now offer online or remote bidding. Check the auctioneer's website and the auction particulars for how to register and bid online.

Question 41

What is a property auction?

Accepted Answer

A property auction is a sale where buyers compete by bidding. The highest bidder (subject to the reserve) buys the property. The sale is legally binding when the hammer falls, and completion usually follows within a set period (e.g. 28 days).

Question 42

Who can buy or sell at auction?

Accepted Answer

Anyone can buy or sell: homeowners, investors, developers, and businesses. You need to be able to complete the purchase (finance in place, solicitor instructed) or prepare the property for sale (legal pack, etc.).

Question 43

Where are Auction Agent auctions held?

Accepted Answer

Auction Agent runs property auctions that can be attended in person or online. Details of each auction, including venue and how to bid, are published in the auction catalogue and on the website.

Question 44

How do I get a valuation for auction?

Accepted Answer

Contact Auction Agent (or your chosen auctioneer) to arrange a free, no-obligation valuation. They will advise on guide price, reserve, and whether auction is suitable for your property.

Question 45

Are auction properties only repossessions or problem properties?

Accepted Answer

No. While some auction properties are repossessions or need work, many are standard sales where the seller wants speed and certainty. The mix varies from auction to auction.

Question 46

What is the difference between auction and traditional sale?

Accepted Answer

In a traditional sale, offers can fall through and the process can be slow. At auction, the sale is binding on the fall of the hammer and completion is typically within 28 days, giving both parties certainty.

Question 47

Can I make an offer before the auction?

Accepted Answer

Some auctioneers allow pre-auction offers. If the seller accepts, the property may be sold before the auction day. Check with the auctioneer for their policy.

Question 48

What if I have a question about a specific lot?

Accepted Answer

Contact the auctioneer using the details in the catalogue or on the website. They can answer questions about the property, viewings, and the legal pack. Your solicitor can help with legal questions.

Question 49

How do I register to bid?

Accepted Answer

Registration is usually done in advance: online, by form, or at the venue. You may need to provide ID and proof of funds or finance. The auction particulars will explain the process.

Question 50

Where can I see upcoming auctions and lots?

Accepted Answer

Visit the Auction Agent website and browse current and upcoming auctions. You can also request catalogues and sign up for alerts so you don't miss new lots.

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