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Property auctions

Buying at traditional or online auction with legally binding bids.

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Professional analysis

Price in buyer's premium/admin fees (often plus VAT), special conditions (seller's costs, arrears, searches), and finance certainty — bridging must be ready to complete in time. Conditional ('modern method') auctions use reservation fees and longer timescales. Use the maximum-bid calculator and never bid above it.

Capital requirements

10% deposit on the day plus fees; completion funds within the contract timeframe.

Cost assumptions to budget for

  • Buyer's premium/admin fee (+VAT)
  • Seller costs passed on in special conditions
  • SDLT
  • Legal pack review
  • Bridging fees

Potential returns

Depends on purchase price vs true value and works; auctions also sell problem properties.

Main risks

  • Binding contract without completed due diligence
  • Failure to complete loses deposit and may incur further liability
  • Unmarketable title or lease defects
  • Guide prices below likely sale price

Legal checks

  • Have a solicitor review the legal pack before bidding
  • Check special conditions, tenancy status, title and searches

Regulatory checks

  • Anti-money-laundering ID checks at registration

Is it suitable?

Often suits

  • Cash or pre-arranged bridging buyers
  • Investors with solicitors who review packs quickly

Usually not suitable for

  • Buyers needing a standard mortgage timeline

A general guide, not a personal recommendation. Suitability depends on your finances, experience and attitude to risk.

Step-by-step

  1. Shortlist lots; add them to your auction tracker.
  2. Download and get the legal pack reviewed.
  3. View the property and get works quotes.
  4. Run the maximum-bid calculator.
  5. Arrange deposit and completion funds.
  6. Register to bid; stop at your maximum.
  7. Complete on time.

Financial calculations

From sold comparables — not the guide price.

Auction maximum bid

Suggested maximum bid£109,500
Deposit on exchange (typically 10%)£10,950
Auction fees£1,800
Stamp duty£5,475
Finance£6,570
Works, legal and other£25,500
Total cost at maximum bid£148,845
Profit at maximum bid£27,555
  • ⚠ A guide price is not a valuation. At a traditional auction the fall of the hammer is exchange of contracts: read the legal pack (special conditions can add costs) before bidding.

Every figure above comes from the assumptions you entered. This is not a valuation, mortgage offer or financial advice.

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Official sources

Last reviewed 31 Oct 2026. Rules change — check the source before relying on this guide.

Not advice

This guide is general research. It is not legal, tax, financial, planning or investment advice. Speak to a qualified, regulated professional before acting.