How to Buy an Unsold Auction Property: A Step-by-Step Guide

Buying an auction property that didn’t sell on the day can be a great opportunity for investors and homebuyers alike to secure a good deal. It’s important to note that unsold properties are not a reflection of quality and they don’t always suggest a property needs a lot of work; rather, they simply didn’t meet the reserve price or attract the right buyer at auction. This means that potential buyers can often buy a property of interest for a favourable price, and without going through the bidding process.  

Understanding the process of buying an unsold property, approaching the seller to make an offer, and performing thorough due diligence ensures a smooth transaction and a successful purchase. In this blog, we’ll guide you through each of these steps. 

What is an Unsold Property? 

An unsold property is one that was offered at auction but didn’t secure a buyer. This is often because it did not meet the seller’s reserve price or failed to attract a successful bid. These properties are frequently re-marketed, either as an unsold auction property, or they’re relisted in a different auction with a different pool of potential buyers, often achieving a sale when the right buyer engages. 

Steps to Buying an Unsold Property 

Purchasing an unsold property requires a slightly different approach than a standard auction sale, and there is often more flexibility for negotiation, but it also demands careful planning and research. Keep reading as we guide you through the right steps to take, from contacting the auctioneer to completing your purchase. 

1. Contact the Auctioneer 

If you find a property of interest in an unsold auction property list, start by sending an enquiry on the listing page. One of our auctioneers will be in touch to provide insight into why the property didn’t sell and whether the seller is open to offers, or whether they’ll relist at another auction event. Auctioneers can also guide buyers on appropriate offer ranges and communicate directly with the seller, so that you don’t have to deal with negotiations yourself. 
 

2. Review the Terms of Sale  

Unsold properties aren’t sold like a property on the open market. Instead, they’re still sold under auction conditions, just without the bidding. They are most commonly sold on a conditional auction basis. This means offers may be accepted subject to whether the purchase can be completed within the specified time frame. Ensure you fully understand all conditions, deadlines, and fees that will be incurred before submitting an offer. 
 

3. Conduct Due Diligence 

Treat the purchase as you would with anything else and make sure that you inspect it to ensure it’s right for you and your budget. Arrange surveys, review legal documents, and check for any planning or development restrictions. Additionally, make sure you read the legal pack made for the property, as this step protects you from unexpected issues and ensures the property meets your requirements, and the requirements of your lender if you’re going through financing to secure the funds for the lot. 
 

4. Submit Your Offer 

With research completed, submit your offer to the auctioneer, and remember to use their guidance on what an appropriate offer range might be. Be prepared to negotiate; sellers of unsold properties are often willing to consider lower offers, particularly if the property has been on the market for some time. 

5. Complete the Purchase 

Once your offer is accepted, the transaction proceeds through the standard legal process. Conditional auction purchases provide some flexibility, but it is essential to meet agreed deadlines for contracts and completion. We’d also recommend that you let your solicitor know in advance that you are planning to buy an unsold auction property, and that it will be subject to sale conditions.  

What are the Benefits of Buying an Unsold Property? 

Buying an unsold property can mean there is greater scope to negotiate a price within your budget, providing flexibility that isn’t always possible during the auction itself. Conditional auctions also allow you time to organise your finances without the immediate pressure of auction-day deadlines. Additionally, you won’t have to worry about the stresses of the bidding process, as you’ll essentially be negotiating with the seller through the auctioneer.  

Can I Make an Offer on an Unsold Property Straight Away? 

Yes, you can make an offer on a property on the day of the event. This guide was primarily written for those who are looking specifically for unsold auction properties, but if you find one by chance on an event day, you can approach the auctioneer with an offer at any time after it is designated as ‘unsold’, provided the seller is open to negotiation. You can do this by submitting an enquiry here.
 

Are Unsold Properties a Better Deal than Auction Sales? 

They are not necessarily “better,” but they can offer more flexibility. Conditional auction sales allow time to arrange finance and negotiate terms without the immediate pressure of auction completion. So, whether they’re better or not is an entirely personal decision dependent on your circumstances. 

Can First-Time Buyers Purchase an Unsold Property? 

Yes, unsold auction properties are open to everyone. Everyone from investors and developers to existing homeowners and first-time buyers can purchase unsold properties, provided they have the necessary finance in place and understand the terms of the sale. 
 

Are there Fees Involved when Buying an Unsold Auction Property? 

Yes, there are still fees involved when buying an unsold auction property as the process is the same as if you had purchased in the auction room. Fees can vary between different properties, but will always be detailed on the listing - we are transparent with our prices so, provided you read the legal pack and details of the sale thoroughly and do your due diligence, you shouldn’t face any financial surprises. 
 

Find an Unsold Property with BTG Eddisons Property Auctions 

If you have any questions about a specific property or about the process of purchasing an unsold auction lot, please get in touch. Our experienced team is ready to provide guidance, offer insights, and answer any queries you may have to help you make a confident, informed decision.