What happens at a property auction?

You may be new to auctions and the fear of the unknown is a daunting prospect. That's why we have compiled a step by step guide demystifying property auctions, what goes on there and what you should expect. The thing to remember is that auctions are just an alternative way of buying property – it's as simple as that!

Some things you need to know:

What is the guide price?

The guide price is purely an estimate of the price that the auctioneer considers that the property might sell for. Where a guide price is given, that price is not to be taken as an indication of the value of the lot, or of the reserve price. It is your responsibility to decide how much you should bid, bearing in mind what funds you have available.

What is the reserve price?

Unless otherwise stated, each lot is subject to a reserve price. If no bid equals or exceeds that reserve price, the lot will be withdrawn from the auction. The seller may bid (or ask the auctioneer or another agent to bid on the seller's behalf) up to the reserve price, but may not make a bid equal to or exceeding the reserve price. If the lot does not reach the reserve price during the auction, you might be able to negotiate afterwards with the auctioneer.

What is the legal pack?

The legal pack will have been compiled by the seller's solicitors prior to the auction, ready to be sent out to the solicitors of all interested parties. This will include the sales contract, local searches and title deeds, etc.

What is the addendum?

This is additional information provided by the agents or seller's solicitors after the legal pack has been prepared. It might show changes to the property description or other information, which my affect buying decisions.

Please now take a few minutes to read our step by step guide to help you fully understand the auction process.