Britain’s best property auction houses

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Britain’s best property auction houses

If you are looking to buy a property at auction, where do you start? From traditional auction houses to a more recent type of type of informal tender auction being modern method of auction, the options are seemingly endless. In this article, we look at the big players in the market who offer regular property auctions, both residential and commercial properties.  We also provide information on how to prepare before the auction, what the bidding process entails, and what you should do once you’ve won at auction.

Whilst the majority of people expect properties requiring a lot of work being available at auction, in some cases you can pick up a house requiring very little redevelopment in a desirable area.

What is a property auction?

The easiest explanation as to what a property auction is to consider the process almost as the reverse of a traditional conveyancing transaction. Where you would only be expected to pay a non-refundable deposit to the seller, once your conveyancer has identified and addressed any and all issues during a standard property transaction, with an auction purchase, a deposit is paid for the property as seen. Therefore, any risks, issues, disputes so on and so forth which affects the property is transferred to you and there is very little you as the buyer can do in order to pursue the seller at a later date, when these become apparent. 

That said and according to the most recent statistics available by the Land Registry, around 20,000 auction property sales take place each year, here in the UK.

Why Buy a Property at Auction?

The most common perception that purchasers have when it comes to purchasing property through auction is the possibility of being able to bag a bargain. From our experience however, this is not always the case. The way we tend to assess the advantage of purchasing a property through auction is the reduced risk of the transaction aborting as a result of one party changing their mind.

Additionally, buying and selling at auction generally guarantee timeframes of completion although this guarantee comes at a price where withdrawing later would mean that the defaulting party would typically loose a substantial amount of money. 

You can expect to find pretty much any type of property being sold at auction these days; from commercial buildings to residential homes and plots of land. Although auction houses tend not to label themselves over what particular asset class they specialise in, you will soon recognise patters as to who offers more fixer-uppers, to some offering ready to move properties. 

 Overview of Britain’s Property Auction Houses

There are a wide rang of property auction companies who operate in England and Wales. More recently, since the introduction of the modern method of auction, traditional estate agents who have in the past not offered auction services have started introducing certain properties for sale on this basis.

We have covered the topic of Modern Method of Auction in a separate article and aim to focus on Traditional Auction Houses here.

Some of the biggest named property auctioneers who we regularly assist with conveyancing formalities for purchasers are 

  • Allsops
  • Auction House
  • Barnard Marcus
  • Clive Emson
  • Countrywide
  • Hunters
  • I am Sold
  • Landwood
  • Leaders
  • McHugh and Co
  • Michael Poole
  • Pattinsons
  • Pugh
  • Savills
  • SDL Auctions
  • Town and Country

Allsops property auctions is a well-known UK auction house dealing with all kinds of assets. Their property auctions tend to range across all asset classes.

Auction House is another well-known UK auction house dealing with all kinds of assets. This auctioneer in our opinion are popular with first time property auction purchases and clients who are looking for a project by way of a fixer-upper.

Savills is one of Britain’s leading property auction houses, offering a wide range of services to those looking to buy or sell property. They are renowned for providing an efficient and reliable service that meets the needs of both buyers and sellers alike. Savills provide an extensive range of properties for auction, including residential, commercial and rural land.

What Types of Properties Are Typically Available?

You can find fixer-uppers, luxury homes, apartments, and more at auction. We recently advised a client purchasing multiple retail units in excess of £2 million and equally have advised clients purchasing an auction property which ironically was being sold through auction as the original Deeds to the property were misplaced.

Some auctions offer a larger selection of properties such as land and multi-unit buildings, for example Allsops and Savills whilst others specialise in a more localised offering.

Since it is not very practical to regularly check individual auction houses for new listings and upcoming auctions, it is generally wise to signup to ‘search alerts’ through these auction houses. The process is not that disimilar to what you would do when signing up to other main stream property portals such as Rightmove or Zoopla. 

How to Prepare for a Property Auction

In order to make the most of the experience, one must be prepared. This includes understanding the legal implications and the fees associated with purchasing a property at auction. A good way of doing this is to ensure you instruct an auction conveyancing solicitor to carry out a pre-auction title check of the legal documents. We have written about this process on a separate article which you can read here.

Research the property thoroughly – find out as much as you can about its market value, condition, and any other pertinent information. The Guide Price set by the auction house for a particular property tend to be around +/- 10% of the seller’s expected sale price. That said, we have seen ample instances where the final sale price has been thousands of pounds off this guide. It is therefore crucial that you also carefully research recently sold prices for similar properties in the area before you even consider taking part in an auction. It is also equally important that you factor in the costs of repairs and upgrades required down the road. We have seen far too many instances where purchasers are carried away during an auction to purchase a property, only to see it back being auctioned off at a later date.

Make sure you familiarise yourself with the auction process and rules, and carefully consider the risks associated with the property. Check for any disclosures related to the condition of the property. Additionally, it’s important to understand the terms of sale and how much you will be expected to pay for the property once you’re the successful bidder. Doing your research can help make bid decisions easier and ultimately save you time and money in the long run.

Make sure you have enough money to purchase the property – consider securing a decision in principle from a mortgage lender or having enough cash in hand before attending the auction. When it comes to property auctions, it pays to be prepared and educated. 

Prepare for bidding by deciding what your maximum bid is, and stick to it no matter what! 

Lastly, often overlooked, most auction houses require all bidders to sign up typically at least 24 hours in advance. This is to ensure that they can conduct their necessary checks on prospective buyers to meet compliance requirements and also ensure they hold your bank details to debit the required deposit where you are the successful bidder. You must therefore ensure that you are familiar with a relevant auctioneer’s procedure, well in advance of the date of auction. 

Concluding Remarks 

Property auctions are a great way to find a unique property and in some cases, also save money in doing so. It is however extremely important to carry out a  thorough research as there remains significant pitfalls unless you are fully prepared yourself. Make sure to look into the property’s legal title as well as having the necessary funds ready before bidding, as once you are the winning bidder you are legally obligated to purchase the property. Finally, when setting a budget it is important to factor in additional costs such as legal fees, survey fees and any potential repairs that may need to be carried out once you have purchased the property. 

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