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What do I need to do once I’ve won a house at auction?

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It’s easy to let your emotions dictate your auction choices.
If the bids are too excessive Keep your budget in your head. There’s always a second chance.

If you’ve made the highest bid, when the hammer goes down you’ll be bound to the terms and conditions of the auction.
3 top tips for auction day

1. Make sure you have the documents ready

If you intend to place an offer in a property auction, you need to have a photographic ID and proof of residency along with you.

These documents may be required if an auction is online.

If you’re purchasing with a mortgage, have the AIP with you. You’ll have to prove you’re in a position to pay the 10 percent deposit if a cash buyer.

2. Be consistent with your budget and bid plans

You should have a clear bid strategy and an idea of your maximum bid.

Be prepared to walk away in the event that bids go higher.

3. If you’re not able to get a chance to buy a house Don’t give up hope.

It’s safer to be secure rather than regretting.

Don’t lose heart. A better home could turn up.

What do I need to do when I’ve won a house in an auction?

Congratulations! Now is the time to pay your deposit or reservation fee and begin working on the legal side.

1. Do a survey about the house

If you bought the house in a modern auction now’s the time to get an appraisal.

A home survey is a way to make sure is in order, and there are a few different types of surveys.

Getting a survey is not an obligation under the law, but it can aid in identifying any problems.

If you purchased using the auction process of today it is possible to opt out in the event of any issues with the auction.

2. Make sure you have a mortgage

If you’re getting a mortgage, your lender will have to carry out a valuation to check the home is worth the price you’re hoping to purchase it.

Mortgage lenders will verify that the home is functional and has a kitchen as well as a bathroom when valuing it. They will also make sure that the property is in good condition.

It is recommended to consider an offer for a mortgage if you are happy with the property.

3. Make sure you are covered by insurance

After you exchange contracts, the property is yours.

Make sure you have insurance for your building immediately. This will protect the mortar, bricks and the structure from damage like floods or fires.

Will I lose my deposit if I pull from an auction?

If you decide to cancel the purchase through auction, you’ll be responsible for some of your losses. The auction method used will determine the amount you’ll lose.

Also, there may be high administrative costs.

If they discover any issues in the condition of the property or its legality, they tend to leave. In particular, there may be issues with the structure or enforcement notices that could impact their plans.
The method of the past

When the hammer is struck in a traditional auction, contracts are exchanged.

This means that you are legally bound to conclude the transaction. The deposit you paid of 10% should you decide to cancel the purchase.
Modern Method

Modern auctions are easier to cancel, but there is still a chance of losing funds.

You’ll lose your 5% reservation fees in the event that you cancel your reservation before 28 days of the date of exchange.

You’ll lose your reservation fee If you cancel your reservation after you have exchanged contracts.

If the seller pulls out of an auction that is modern, you will receive the deposit and reservation fee returned.
What are the pros and cons of purchasing an auction house?


You may be able to get a bargain

Auctions are a great place to find a home renovation or low-value home.

It is transparent

You can see what others are bidding on, and are less likely to be stunned by a seller that changes their thinking.

You’re on a level playing field

There’s no need to rush to get your offer in first or convince an estate agent that you’re the perfect buyer.

It’s quick

The whole process is wrapped in a month or two. The likelihood of delays is less than other methods of selling.

You can buy with the help of a mortgage

A growing number of institutions and banks are willing to provide loans to auction buyers these days and especially with the new auction method.


It’s a bit uncertain

It’s not guaranteed you will be the top bidder for the property.

You must pay promptly

Auction day is a huge event. The remaining proceeds are paid out shortly after.

You’re locked in

If you change your mind it is difficult to rescind an auction purchase. It’s possible to loss a significant amount.

It’s emotional

Bidding at an auction can be an emotional rollercoaster.

Do you want to purchase a home through an auction?

A house bought at auction is more risky than buying a property through an estate agent.

It’s not possible to assure you’ll be able to get the house and that your budget will be satisfied. You must ensure all your ducks are in a row prior to making a decision, and it could cost you a lot if you change your choice.

If you do your research there are many advantages of purchasing a house through auction.

It’s a fast and easy way to purchase an investment property. Auctions can provide many treasures, and you could find the perfect renovation project.

You will be better informed about the property that you are looking at. Before you submit a bid, do your research on the area and its price of houses.

Learn about the rules and procedures of an auction. Make sure you understand the terms and conditions of the auction, as well as the amount you’ll be responsible for if you win the property.

Don’t try to do it all by yourself. Seek help from experts. A solicitor, surveyor and estate agent can help you buy a home at auction much easier.