Buying a Property at Auction: What You Need To Know

Buying properties at auctions has become increasingly popular over the years so in today’s blog post, I will be sharing what you need to know about buying a property at auction.

If you’re thinking of buying a property at auction but not sure if you’re making the right choice or if you’re getting started on your property investment journey, then continue reading.

What is a property auction?


A property auction is where interested buyers come together to submit bids and the highest bidder will have the opportunity to buy the property.

What are the benefits buying a property at auction?

There are many benefits such as:

  • Low costs
  • Quick and easy process
  • No fixed asking prices
  • Temporary financing


What are the disadvantages of buying a property at auction?

  • Risk of hidden costs
  • Agreements or loopholes could make the purchase complex
  • Your solicitor needs to be present at auction


How does a property auction work?

During an auction, interested buyers come together to submit bids and the highest bidder will have the opportunity to buy the property.  According to Good Move 2020, you will have to put down a 10% deposit to secure the sale. After this, completion of the sale will occur within a month when the remaining funds are transferred.


Are property auctions cheaper?

This is dependent on the property and project. You need to have an idea of what you’re willing to spend on the property and how much you will spend renovations (if any).

Why are houses sold at auctions?

Properties are sold at auction because it is quicker and easier to sell this way and it is very useful for sellers who need to sell their property fast.


Where can I find a property auction?

You can find property auctions in your area on websites such as UK Property Auctions, EIG Property Auctions, and more.


Do I need a solicitor to pay at auction?

Yes, you need a solicitor at auction to advise you on the contents of your legal pack. You have to get legal advice before you bid.

If you have further questions, why not join the Assets For Life Community Facebook Group where you can connect with likeminded individuals and get support.

Before you go …

If you’re someone who understands that property is an amazing force to aid you in creating an income, but you don’t have thousands of pounds in the bank for a deposit to buy investment properties, then click here to get your FREE guide.