🔨 Buying Property at Auction: What You Should Know
Buying property at auction can be a fast-paced and exciting way to secure your next home or investment, often at a competitive price. But it’s not without its risks. At David Clarke Estate Agents, our estate agents in Herne Bay and Whitstable regularly support buyers exploring this route, ensuring they’re informed and prepared before placing a bid.
Unlike traditional sales, auctions move quickly. Once the hammer falls, the sale is legally binding and you typically have just 28 days to complete the purchase. That means you need to have your finances, legal checks, and surveyor’s advice all lined up before the auction even begins.
Step 1: Do your research. Study the auction catalogue and shortlist properties that interest you. Request the legal pack for each one—this may include title deeds, lease details, searches, and special conditions. If something doesn’t make sense, a solicitor can help interpret the documentation.
Step 2: View the property in person. Even though timeframes are tight, it’s crucial to inspect the property. Look for structural issues, check the local area, and understand the work (and cost) involved if renovations are needed.
Step 3: Arrange a survey and get a mortgage Agreement in Principle. While some auction properties are cash-buyer only, others are mortgageable—but not all lenders are happy to lend on auction homes. Talk to a mortgage adviser early and make sure your funds can be released in time to meet auction deadlines.
Step 4: Set your budget—and stick to it. Bidding wars can push prices higher than anticipated, so be clear on your ceiling price. Also factor in the buyer’s premium (auctioneer fees), Stamp Duty Land Tax, and legal costs.
Step 5: On the day, be ready to act fast. If your bid wins, you’ll need to pay a 10% deposit immediately and sign the contract. Completion is usually required within 20 to 28 days—miss it, and you could lose both the property and your deposit.
Buying at auction isn’t just for seasoned investors—it’s a growing trend among first-time buyers and downsizers too. But preparation is everything. David Clarke Estate Agents can help you identify suitable auction opportunities in Herne Bay and Whitstable and connect you with professionals who specialise in legal and structural due diligence for auction properties.
Whether you’re after a renovation project, a buy-to-let, or a characterful home you wouldn’t find on the open market, the auction room might hold your next opportunity. With the right support, you can enter confidently and exit successfully.