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  4. The Advantages of Buying Property at Auction

There are many advantages of buying property at auction which you don’t get through other methods.

We’ve created this guide to highlight the key benefits of this method and help you decide if it’s the right avenue for you.

Advantages of buying at auction

Speed

Many people choose to buy at auction because of the speed offered by this method. Buying via the private treaty route can take anywhere from a few weeks to several months, which is not ideal for those who are ready to move quickly. By contrast, purchasing a property at auction results in a much faster completion time - usually within four to eight weeks of the auction.  

Straightforward

Buying property at auctions is straightforward.

Here are some things you need to consider if you’re thinking of bidding on a property:

You can find more details about this on our How to Register to Bid page.

Transparency and equal opportunity

One of the big advantages of auctions is that they create a level playing field, whereby everyone is bidding openly and competitively at the same time.

Reliable

Another advantage of buying at auction is reliability and certainty of purchase. If you’re the highest bidder, once the gavel falls, the property is legally yours.

When purchasers use the private treaty method, the buying process often gets delayed, and deals can simply fall through due to miscommunication and changes to the circumstances of those involved in the transaction. That is not the case with auctions.

If your bid has been successful, all you need to do is provide the 10% deposit on your desired property on the day of the auction and pay the rest of the balance within 20 to 30 days.

Wide range of properties

Another advantage of buying at auction is the sheer range of properties on offer, ranging from country manors to ground rent investments. You can see all available lots on our website.

Competitive pricing

Another common reason people choose to buy at auction is the wealth of keenly priced properties on offer which could be difficult to come by elsewhere. Auctions are an excellent place for those interested in value-add and change-of-use opportunities, which often result in attractive returns.

Things to consider when buying at auction

Buying at auction is thrilling and rewarding but there are a few things to keep in mind before you start.

Have your finances sorted beforehand

Since you’ll have to pay the 10% deposit straight away and the remainder not too long after, it’s best to make any financial arrangements before auction day so that you know you can make payments on time.

Set yourself a budget

Auctions can be exciting, but you don’t want to get carried away and find yourself in a bidding war spending more than you can afford. Instead, set yourself a budget for the day and stick to it.   

You might not be the highest bidder

Don’t be downhearted if you’re not successful. It’s important to be realistic and go into auction knowing that you might not be the highest bidder and get the property you were interested in.

If successful, the property is yours

If you’re successful on auction day, contracts are exchanged between the seller and buyer immediately. This means that you’re both locked into the transaction, and neither party can change their mind without risking penalties. So, it’s important that you’re certain you want to buy the property you’re bidding on.

Be prepared with surveyors and solicitors

Buying at auction is much more fast-paced compared to the private treaty method. Typically, the auction catalogue will be available online three weeks before auction day, so in this time you’ll need to arrange a survey/conduct a virtual tour and have your solicitor check the legal pack for properties you’re interested in.

Why should I buy property at auction with Allsop?

Allsop is the UK’s market leader in residential and commercial property auctions, known for its high-quality service and integrity.

Now that you are familiar with the auction process and the advantages of this method, read our Auction Insights for more inspiration and market intelligence.

Find out what you need to do before placing a bid on auction day.

If you’re interested in bidding on a property, you’ll need to know how to register for auction.

Once registered, you'll then need to know how to bid on auction day.

Find answers to our most frequently asked questions.

Next Auction 11th December 2024 (Online)

Next Auction 18th December 2024 (Live Stream)