Buying a house at auction as a first-time buyer can be an exciting way to get a property at a lower price, but it also comes with risks. Here’s what you need to know:

1. Research the Auction Process

• Auctions move quickly, and sales are final. Understand how the auction works before bidding.
• Auctions can be in-person, online, or via sealed bids.
• Some auctions require immediate payment or a deposit on the day.

2. Get Your Finances Ready

• Have your mortgage or funding in place. Many auction sales require completion within 28 days or less.
• If using a mortgage, get an agreement in principle (AIP) before bidding.
• Auctions often require a 10% deposit upfront, with the remainder due within a set timeframe.

3. Research the Property

• Read the legal pack (includes title deeds, leases, and any restrictions).
• Get a survey or at least a property inspection—some auction homes are sold “as-is” and may need repairs.
• Check for hidden costs like auction fees, legal fees, and renovation expenses.

4. Set a Budget and Stick to It

• Decide your maximum bid before the auction and don’t get caught up in the excitement.
• Factor in additional costs, such as stamp duty, renovation, and solicitor fees.

5. Bidding at the Auction

• Register in advance if required.
• Attend a few auctions as an observer first to understand the process.
• If bidding, do so confidently but within your set budget.

6. Post-Auction Steps

• If you win, you’ll need to pay the deposit immediately.
• Instruct a solicitor to finalize the paperwork.
• Ensure you can complete the full payment within the required timeframe.

7. Consider Buying ‘Unsold Lots’

• If a property doesn’t sell, you may be able to negotiate a lower price with the seller after the auction.

Is it worth buying a house at auction?

Buying a house at auction can be worth it, but it depends on your goals, budget, and risk tolerance. Here are the pros and cons to help you decide:

✅ Pros of Buying at Auction

1. Potential Bargains – Properties often sell below market value, especially if there’s little competition.
2. Fast Process – Sales are usually completed within 28 days, meaning no long chains or delays.
3. Transparency – You see what others are bidding, so there’s no hidden negotiations.
4. Unique Properties – Auctions often list unusual homes, repossessions, and fixer-uppers that may not be available on the open market.
5. No Gazumping – Once the hammer falls, the sale is legally binding, so sellers can’t accept a higher offer later.

❌ Cons of Buying at Auction

1. Limited Time for Due Diligence – You may not have enough time for surveys, which increases the risk of buying a property with hidden issues.
2. Upfront Costs – You need a 10% deposit immediately and must complete the purchase within a short timeframe.
3. Properties May Need Work – Many auction homes require significant renovations.
4. Competition Can Drive Up Prices – Other bidders may push the price beyond your budget.
5. Risk of Losing Money – If you win but can’t complete the purchase, you lose your deposit and may face legal action.

Who Should Consider Buying at Auction?

• First-time buyers looking for a deal (if they do thorough research).
• Investors looking for rental properties or fix-and-flip opportunities.
• Buyers who can complete the purchase quickly, preferably with cash or pre-approved financing.

Who Should Avoid It?

• Those who rely on mortgages with slow approval times.
• Buyers who are unfamiliar with the process and haven’t done their research.
• Those who aren’t prepared for potential repair or legal complications.

Final Verdict: Is It Worth It?

It can be a great opportunity if you’re well-prepared and financially ready. However, it’s not for everyone, especially if you’re risk-averse or require a traditional mortgage process.