Buying a commercial property at auction should be an easy process if you follow a few simple tips. First of all, you should identify the property you are interested in from the catalogue and check to ensure whether it’s still available. You can do this by contacting the auctioneer or auction house before attending.
When attending an auction, you will need to have some items with you. Firstly, you need an auction catalogue to follow the proceedings. You will need a valid payment form, which requires you to check with the auctioneer what they accept. In most cases, you will need two forms of identification, typically one photo ID and one household or utility bill. You may additionally require the solicitor details as well. It may be worth checking with the auctioneer as they may have additional elements they require.
On the day of the auction, you can attend personally or bid remotely by prior arrangement. Bidding on an auction property remotely usually requires the use of the internet, telephone or proxy bidding. In some cases, you can pre-register a bid on an auction property but again we always recommend checking with the auctioneer prior.
The auctioneer will announce each lot and invite bids which are indicated by raising your hand or catalogue. The property will be sold to the highest bidder.
If your bid is successful, you will be required to provide ID along with details of your solicitor and pay a deposit. Completion will usually follow within a month. Remember, the fall of the gavel marks a legally binding agreement, so if you are in any doubt about the property, don’t bid.
Unsold auction lots can sometimes be sold directly after the auction depending on the auction provider. If this is possible, then you can typically register a bid for an unsold property with the auctioneers before leaving the auction house.
Local and National Property Auctions
Positive and Negative Point of Auction Properties