Buying a House at Auction
Buying a house at auction can be a fast and effective way to secure property. However, buying at auction might feel a little daunting at first. The good news is that with the right preparation, property auctions can be a straightforward and rewarding way to buy your next home or investment opportunity.
The Edward Mellor auction process is designed to be clear, secure and fast-moving, with contracts exchanged as soon as the hammer falls. Completion typically takes place in as little as 28 days, which is much more quickly than is normal for traditional private treaty house sales.
That all sounds very exciting, but how do buyers get started at auction?
For those who are new to auction, knowing what to expect beforehand, from finance and legal checks to how bidding works and completion, will help you feel confident on the day and avoid any last-minute surprises.
Can I get a mortgage for an auction property?
Yes, you can buy an auction property with a mortgage, but with sales becoming legally binding at the drop of the hammer and contracts exchanging soon after, it’s important to have everything in place before submitting a winning bid.
You will usually need a mortgage agreement in principle before you bid, with a lender who is comfortable working to auction timescales.
It’s also worth knowing that some auction properties may not be suitable for a standard mortgage straight away, which is why some buyers opt for bridging finance or specialist lenders.
For example, non-standard construction types, or homes in poor condition, may require planning and refurbishment before they can be properly mortgaged.
This is often due to the property’s condition or construction type. In these cases, some buyers choose to use bridging finance or cash to complete the purchase first, before moving on to a mortgage once any improvement works have been carried out.
Speaking to an experienced mortgage adviser before the auction can help you understand your options and make sure you are ready to bid with confidence.
If you have any queries regarding auction finance, contact our professional mortgage team today. With over 40 years of industry experience, they can help you prepare everything you need before committing to a purchase.
Can first-time buyers buy at auction?
Yes, first-time buyers can buy at auction, and many do!
However, the process is less flexible than buying through an estate agent. Once your bid is successful, you are legally committed to the purchase. There is no cooling-off period, and pulling out can result in losing your deposit and facing additional costs.
For first-time buyers, this makes preparation especially important. It’s essential to research the property thoroughly, understand the legal pack, arrange your finance in advance and take professional advice where needed.
With the right preparation, buying at auction can be a straightforward and rewarding route into property ownership.
Do I need to register to bid?
Yes, you will need to register before you can place a bid at auction.
This is a standard part of the process and helps ensure that all bidders are verified and ready to proceed if they are successful. Auctioneers are required to carry out identity checks and confirm that buyers understand the auction terms and conditions.
Registering is usually straightforward and involves providing proof of ID and address, agreeing to the auction conditions, and confirming how your deposit will be paid.
It’s important to complete your registration before auction day, as checks often need to be approved in advance.
Bidding Token System
Edward Mellor Property Auctions employs a bidding token system, which helps to ensure that bidders are qualified and serious about buying.
Buyers are required to buy a refundable £5,000 token for each property they intend to bid on.
Upon a successful winning bid, the £5,000 will be retained as part of the deposit price of the lot, while tokens for unsuccessful bids are returned.
If you’re interested in buying at auction, curious about our current properties, or ready to register to bid, you can find everything you need to know about our upcoming auction events using the link below.
Do I need a solicitor to buy at auction?
Yes, using a solicitor or conveyancer is strongly recommended and, in practice, essential.
Ensuring due diligence is vital before bidding at auction. Your solicitor should review the legal pack for every lot you intend to bid on. The pack contains key documents about the property, including title information, searches and any special conditions of sale.
If your bid is successful, you will be required to sign a memorandum of sale and proceed to completion within the agreed timeframe, so having a solicitor in place early is crucial.
This allows you to identify any legal risks before bidding, act quickly after the auction, and ensure you meet the strict completion deadline.
Can I have a survey done before the auction?
Yes, arranging a survey before the auction is often a very sensible step, especially if you are buying an older property or something that may need work.
Auction properties are usually sold as seen, which means it is up to the buyer to understand the condition of the property before bidding. A survey can help highlight any structural issues, identify potential repair costs, and give you a clearer idea of what work may be needed after purchase.
Having this information beforehand can also help you set a realistic budget and bid with more confidence on auction day.
While a survey may not always be necessary for every property, many buyers find it provides valuable reassurance and helps avoid unexpected costs later on.
How much deposit do I need?
For Edward Mellor auction purchases, the deposit paid is 10% of the purchase price, with a minimum of £5,000.
To avoid any issues, make sure your funds are readily available and that you understand which payment methods the auctioneer accepts. It’s also a good idea to budget for any additional auction or legal fees that may apply alongside the deposit.
Because contracts are exchanged as soon as the hammer falls, the deposit must usually be paid straight away. Being fully prepared beforehand will help the process run smoothly and allow you to bid with confidence.
When do I have to complete the purchase?
Completion usually takes place within 28 days after the auction ends.
This completion date is agreed in advance and included in the legal pack, giving both the buyer and seller clarity and certainty from the start. One of the main benefits of buying at auction is that the process moves much more quickly than a traditional property purchase.
Because the timescales are shorter, it’s important to have your finances arranged, your solicitor ready to act, and any checks or surveys completed before you bid.
Contact Edward Mellor Property Auctions
If you’re considering buying a property at auction and want expert guidance, the Edward Mellor Auctions team is here to help.
From registering to bid and reviewing legal packs to arranging auction finance, we can support you at every stage of the process.
Get in touch today to speak with our team and take the next step towards buying at auction with confidence.
Related Pages
Auction FAQs | Selling a House at Auction | How do Property Auctions Work? | Common Auction Questions | Selling at Auction | Auctions | Edward Mellor