How to Buy Property at Auction
Your Complete Guide from Palace Auctions London
Welcome to the world of property auctions. Whether you’re a first-time buyer or seasoned investor, we’ll guide you through every step of purchasing property at auction. Let’s make your auction experience successful and stress-free.
Before the Auction
The key to auction success lies in thorough preparation. Start by browsing our current lots online or request our auction catalogue. When you find a property that interests you, there are several essential steps to take.
“Success at auction starts long before the bidding begins. Knowledge and preparation are your best allies.”
Research is Everything
Take time to really get to know your chosen property. Visit it, understand its potential, and most importantly, its true value to you. Our team can arrange viewings and answer any questions you might have about the property or location.
Legal Pack: Your Essential Reading
Every property comes with a legal pack – think of it as the property’s life story. It contains crucial information like:
- Title deeds
- Property searches
- Lease documents (if applicable)
- Special conditions of sale
Try to Have your solicitor review this documentation thoroughly. They might spot important details that could affect your decision to bid or the property’s value.
“Understanding the legal pack is crucial – it’s not just paperwork, it’s protection.”
Financial Preparation
Before auction day, ensure your finances are in perfect order. You’ll need to:
Get funds ready
When you register to bid you are required to arrange a bidder security. If you subsequently purchase a property you are required to “top up” this payment and transfer the balance of the 10% deposit to the Palace Auctions London Client Account.
The Contract documentation charge fee is deducted from the bidder security payment if you are the successful purchaser.
What is the bidder security and how do I pay it?
A bidder security payment authorisation is required for each lot you wish to bid for. This is detailed on the payments page when you register and an amount will be held on your debit card via our secure online payment method.
The amount required is as follows:
- Residential Auctions – per lot and inclusive:
- Guide price: £1 – £49,999 – bidder security payable = £2,000 per lot
- Guide price: £50,000 – £149,999 – bidder security payable = £5,000 per lot
- Guide price: £150,000 and above – bidder security payable = £10,000 per lot
What is the Palace Auction Contract and Documents fee?
There is no fee payable to bid. However, if you are successful in bidding, the buyer’s fees will apply. This fee applies to each lot purchased in the auction. The buyers’ fees are as follows:
- Residential Auctions:
- Lots sold for £10,000 or more: £1,000 plus VAT
- Lots sold for less than £10,000: £600 plus VAT
- A Buyers premium charge is likely to be payable. Please check each induvial lot via our website to account for this. Or call the Auctioneers
The Deposit
Be ready to pay 10% of the purchase price immediately if you’re successful. This is non-refundable, so be certain about your purchase.
The Balance
You’ll typically have 28 – 56 days to complete the purchase. Make sure your funding is arranged and confirmed before you bid. Whether you’re using cash, a mortgage, or other funding, having it secured in advance is essential.
Auction Day Approaches
Registration is Key
Register with us well in advance. You’ll need:
- Photo ID
- Proof of address
- Proof of funds
- Solicitor’s details
“Being registered and ready gives you peace of mind to focus on what matters – securing your property.”
Bidding Options
We’ve made bidding accessible and convenient through multiple channels:
In-Person Bidding
Nothing beats the excitement of being in the auction room. Arrive early, collect your bidding paddle, and experience the energy firsthand.
Online Live-Streaming
Can’t make it to the venue? Our live-stream service lets you participate from anywhere, watching and bidding in real-time.
Telephone Bidding
A member of our team can bid on your behalf, following your instructions over the phone.
Proxy Bidding
Submit your maximum bid in advance, and we’ll bid up to that amount for you.
During the Auction
Keep these key points in mind:
- The auctioneer’s word is final
- Each lot has its own specific conditions
- Bids must be clear and decisive
- The fall of the hammer constitutes a binding contract
“Stay calm, bid clearly, and don’t get carried away in the heat of the moment.”
Success! You’re the highest bidder
Congratulations! Here’s what happens next:
- Immediate payment of 10% deposit
- Sign the contract
- Arrange buildings insurance
- Begin completion process
- Pay the balance within 28 days
After the Auction
Our support doesn’t end when the hammer falls. We’ll guide you through to completion, ensuring a smooth transition to ownership.
Need More Information?
Our experienced team is here to help at every stage:
📞 Auction Enquiries: [0207 101 3647]
✉️ Email Support: Edward@palaceauctions.com
🏢 Visit Our Office:
Palace Auctions (London) Ltd
Head Office
11 Old Bond Street
Mayfair
London
W1S 4PN
Upcoming Auctions
https://palaceauctions.com/upcoming-auctions/
Free Resources
Download our helpful guides:
- First-Time Buyer’s Auction Guide
- Legal Pack Explanation
- Finance Options Guide
- Auction Day Checklist
“Let us help you turn your property aspirations into reality through auction.“[Register for Next Auction]
Palace Auctions London: Making Property Dreams Reality