There are several differences between buying from property auctions and from estate agents. At a property auction:

• A contract is binding once the auction hammer has been banged
  
• The property is put on sale on a specific day
  
• There is no risk from gazumping
  
• A wide range of properties are available countrywide through auction, including seized repossessions and properties needing renovation.
  
• Legal enquiries and searches must be done before bidding.
  
• All bids made are unconditional so finances must be in place beforehand.
  
  

Choosing your property

• Look through the catalogue and mark those properties of interest to you.
• Check the guide price, this is not the asking price but a guide price only.
• Call the agent and ask to arrange to view the residential or commercial properties that interest you.
• Register your interest with the agent. The agent can then contact you if the property is withdrawn.
• Enquire about any legal issues. Pass a copy of the auction catalogue to a solicitor, as you will be expected to sign and exchange contracts in the auction room.
• Get your finances sorted. If you need a mortgage get it approved in principle before the auction day. The price you bid for is the price you must pay. A deposit of 10% of the purchase price is required on the day. The minimum deposit is usually £1,000. The 90% remaining is payable within 28 days.
• Ensure the deposit is ready and that your lenders know you are purchasing your home by auction.
• If you are unable to attend the auction you can make a proxy bid, by telephone, in writing or online over the Internet. The agency must have your registration form and cheque for the deposit before bidding commences.
• It is advisable to call the agency the day before the auction as sometimes houses are sold or withdrawn prior to the auction.
• On the day you will need the catalogue, your cheque book, a form of ID, the contact details of your solicitor.
• During the auction the auctioneer invites bids at a certain increase level. To bid raise your hand or catalogue.
• If you are successful in purchasing at the fall of the hammer you will be expected to fill out a simple form and produce a form of ID. You will be given a 'lot card' which your proof of purchase. The contract will be prepared and signed.
• As soon as the contracts have been exchanged the property is the new owners insurable risk, so it is essential to arrange building insurance immediately after the sale.