How to Buy Property at Auction

Looking to buy a property quickly and efficiently? Then buying through an auction may be the solution for you.

However, we understand that auctions can be daunting if you don’t know where to start. That’s why we’ve put together a guide to buying your next property at auction. Find out more here.

How Do Property Auctions Work?

A property auction is a quick and efficient way to buy or sell a property, either online or in person. Multiple bidders compete for the property, and the highest bidder wins.

There are three main formats:

• In-room auctions – held at a physical venue with bidders present.
• Livestream auctions – bidders log in online but the auctioneer runs the event live.
  
• Online-only auctions – run over several days where bids are placed digitally.

Before any bidding begins, potential buyers can inspect the property, review the legal pack, and arrange finances. Legal packs are usually available 2–4 weeks before the auction date, giving buyers time to complete checks.

It’s important to understand that once the hammer falls, the winning bid is legally binding.

➤ Learn more in our guide to how property auctions work

What Are the Different Types of Auctions?

There are two main types of auctions when it comes to buying a property, which include traditional and modern auctions.

Traditional Auction

• The most common format
• Takes place in person or online
• Once the hammer falls, the winning bidder is legally bound to pay a 10% deposit immediately
• Completion typically happens within 28 days
• Ideal for cash buyers or those with mortgage offers already in place

Modern Auction (Conditional Auction)

• More flexible for buyers
• Also known as the “conditional” auction method
• The winning bidder pays a reservation fee (non-refundable) rather than a deposit
• They then have 28 days to exchange contracts and a further 28 days to complete
• Popular with buyers who need more time to secure finance

What to Do Before Buying a Property

Before entering the auction room (or joining online), you should:

1. Research the auction catalogue – Look at all the properties available and shortlist those that meet your needs.
2. View the property in person – Always attend an open viewing to check the condition of the property.
3. Review the legal pack – This includes searches, title deeds, and any special conditions. Always get a solicitor to review it.
4. Arrange finances in advance – Auctions move quickly, so whether you’re a cash buyer or using a mortgage, ensure you have funding ready.
5. Set a maximum bid – Stick to your budget to avoid overpaying in the heat of bidding.

What to Do During the Buying Process 

When the auction starts:

• Arrive (or log in) early to understand how the bidding process is run.
• Register your interest and ensure you have your ID and funds ready.
• Bid confidently but within budget – auctions move quickly, so be prepared.
• Understand the hammer fall – if you’re the winning bidder, contracts are binding immediately in a traditional auction.

What to Do After Securing a Sale 

Now that you have successfully secured a sale:

1. Pay the deposit or reservation fee immediately (typically 10% for traditional auctions – learn more about deposits here)
2. Work with your solicitor to complete searches, contracts, and financial arrangements within the set timescales
3. Prepare for completion – whether moving in, renovating, or reselling

Failing to complete can result in losing your deposit or reservation fee – so preparation is an absolute must. 

Why Should You Sell Your Property at Auction?

Selling a property at auction has several advantages:

• Speed – sales usually complete within 28–56 days
• Certainty – once the hammer falls, the buyer is legally committed
• Competitive bidding – can drive up the final sale price
• Transparency – open bidding process gives confidence to both buyers and sellers

It can be especially useful for properties in need of renovation, those with structural issues, or homes that may not attract traditional buyers.

Check out our guide to selling a home at auction for more. 

Pros and Cons of Buying a Property Through an Auction

Pros

• Faster process than traditional estate agent sales
• Opportunity to find below-market-value properties
• Transparent process with open bidding
• Certainty once the hammer falls

Cons

• Need to have finances in place quickly
• Limited time to research or carry out surveys
• Risk of overbidding in the heat of the moment
• Deposits are non-refundable if you fail to complete

Buy Your Next Property at Auction With Liam Gretton

Whether you’re a first-time buyer, an investor, or looking to sell your home, buying or selling at auction can be one of the fastest and most effective ways to move forward.

At Liam Gretton, we guide you through the process from start to finish, ensuring you avoid costly mistakes and get the best deal possible.

Ready to take the next step? Get in touch with us today to discuss your auction property plans.