Print this pageBuying at Auction
Introduction
Because of their speed, simplicity and advantages to both purchaser and vendor, auctions are fast becoming a popular way in which to buy and sell residential property.
The fall of the auctioneer’s hammer (or gavel) is equivalent to exchange of contracts in the standard sale by private treaty, so the purchaser cannot be gazumped, while the vendor need not fear last-minute price renegotiations. There is no potential for delays or uncertainties, and neither side has any opportunity for changes of heart.
Estate agents often have details of properties to be auctioned. Alternatively, you can find information in the local and national press, or online.
Types of Property
The kinds of home most commonly auctioned include:
• one-offs that an estate agent finds difficult to value, such as converted mills or chapels
• those that are hard to sell
• those with development potential
• repossessions offered for sale by mortgage lenders. These often have low reserve prices, so you may get a bargain
In some cases (for instance, a sale by executors or creditors), a property must be auctioned for legal reasons, to demonstrate that a fair price has been obtained.
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