The Dos and Don’ts of Buying at Auction

Property auctions continue to rise in popularity, offering buyers a faster, more secure and more transparent way to purchase property. Whether you’re a first‑time buyer, landlord, developer or investor, understanding how to approach buying at auction is key to making confident, well‑informed decisions.

This guide breaks down the main pros and cons of buying at auction and the essential dos and don’ts to help you get the best possible outcome.

Pros and Cons of Buying a Property at Auction

Buying at auction has its advantages — and some important considerations.

Benefits of Buying at Auction

Faster and More Secure Sales

Auctions offer certainty: if you’re the highest bidder above the reserve price, the deal is legally binding as soon as the hammer falls.

This removes the risk of fall‑throughs — a common issue on the open market.

Transparency Throughout

Bidding happens in real time, creating a level playing field. There are no hidden negotiations or gazumping; all buyers have an equal opportunity.

Clear, Accessible Legal Information

Auction legal packs are typically available to download in advance, helping you understand exactly what you are buying before auction day.

Wide Range of Opportunities

Auction catalogues often feature unique, unusual or high‑potential properties not always seen on the open market, including land, refurbishments, investment stock and commercial assets.

Drawbacks to Be Aware Of

Speed Can Be Intimidating

The pace of the auction process can be daunting for first‑time bidders. Preparation is essential.

Buyers Must Act Quickly

Because exchange happens immediately, you must have finances ready and due diligence completed beforehand.

No Property Chains

Sellers and buyers cannot be in a chain, which may limit some purchasers. But for chain‑free buyers, auctions can be ideal.

The Dos of Buying Property at Auction

To get the most out of your auction experience, follow these key tips.

Do: Research the Property and the Auction Process

Spend time looking at:

• Local property values
• Demand in the area
• Comparable sales
• The auction format and rules

Understanding how auctions work — and what to expect — will help you bid more confidently.

Do: Read the Legal Pack Thoroughly

Legal packs contain vital documents such as:

• Title deeds
• Searches
• Special conditions
• Tenancy details (if applicable)

They can uncover issues that affect value or future costs. Ask your solicitor to review them carefully.

Do: View the Property in Person

Never rely on photos alone.

View the property at least once, ideally with a:

• Surveyor (to assess condition)
• Builder (for refurbishment/repair costs)
• If you have questions, speak to the auctioneer well ahead of auction day.

Do: Set a Budget — and Stick to It

Bidding can be fast and exciting. Set a clear maximum limit before the auction begins, factoring in:

• Market value
• Renovation costs
• Stamp duty
• Fees
• Financial limits

Sticking to your budget prevents overspending during competitive bidding.

Do: Prepare Your Finances Early

Whether paying in cash, using a mortgage in principle or bridging finance, ensure your funding is ready.

You will need:

• A deposit (typically 10%) on auction day
• Funds to complete within 28 days (unless special conditions apply)

The Don’ts of Buying Property at Auction

Avoid these common mistakes to reduce risk and stress.

Don’t: Bid Without Viewing or Checking the Legal Pack

Skipping due diligence can lead to unexpected problems such as:

• Structural issues
• Boundary disputes
• Easements or covenants
• Planning restrictions
• Enforcement notices

These could significantly affect value or suitability.

Don’t: Be Disheartened If You Miss Out

It’s natural to be disappointed, but losing out is often better than making the wrong purchase. The cost of due diligence is small compared to a failed open‑market sale weeks later.

Don’t: Assume Auctions Are Only for Cash Buyers

You can buy at auction with:

• A mortgage in principle
• A bridging loan
• Cash

Just make sure your chosen finance method fits the auction timeline.

Don’t: Skip Professional Advice

Before bidding, it’s strongly recommended to:

• Instruct a solicitor to review the legal pack
• Arrange a survey where appropriate

Surveyors provide professional insight — and indemnity insurance — offering peace of mind.

Start Buying at Auction with BTG Eddisons Property Auctions

BTG Eddisons Property Auctions offers monthly National Auction Events with a wide range of residential, commercial and land opportunities across the UK.

Our team is on hand to support you throughout the process — from understanding legal packs to preparing for auction day.

Browse our current lots or get in touch for expert guidance on buying at auction.