The Most Common Question we are asked, especially by our International clients and guests involves the auction process itself; How does it work and what steps are involved in participating in a London property auction?
It’s one of the questions we get asked the most; ‘How does it work and what steps are involved in participating in a London property auction?’
This guide aims to equip you with the necessary knowledge and strategies to confidently participate in the upcoming September auction in London. From understanding the auction process to mastering bidding techniques, we’ll cover every aspect to ensure a successful and rewarding experience.
A 6 Step Deep Dive into the Auction Process;
1 – Understanding the Auction Process
The auction process can appear intricate, but it boils down to a series of well-defined steps.
- Registration
- Viewing Sessions
- Bidding
- Payment and Collection
First, register with the auction house, providing essential details and being ready to bid. Next, attend viewing sessions to inspect the property or properties you’re interested in, carefully examining their condition, authenticity, and any accompanying documentation.
The process can feel like a daunting maze, if you are new to the game. We strongly recommend having a Real Estate broker from Stonelink International by your side, with the experience and resources assist you. Why?
Leverage our experience and resources to involve the surveyor, builder, or engineer in jointly inspecting the property that catches your eye, creating a united front as your extended team.
Established auction house Allsop LLP offers both residential and commercial properties and each property has a Lot No. The actual bidding takes place in a designated auction room, either live or online. You’ll have the opportunity to place bids, as the auctioneer calls out the Lot No, either in person or through a representative, with the highest bidder securing the property.
Please do not make a bid online or lift your hand in the auction room, if you are not ready to proceed with making the purchase and by ready wemean have the cash and / or your mortgage or finance broker on stand by.
Successful bidders are required to settle their payments promptly with an immediate deposit and complete within 55 days or earlier, depending on the specific property.
2 – Researching and Evaluating
All the important, hard work is done before auction day arrives and thorough research is the cornerstone of smart auction participation.
- Explore auction catalogues online.
- Identify the property you are interested in buying.
- Research historical prices and patterns in the local area, such as schools, hospitals, amenities.
- Consult with experts, such mortgage or finance broker, laywer, real estate broker, surveyor, main contractor or engineer.
When preparing for a property auction, it’s important to clearly define your areas of interest upfront. Whether you’re focused on residential, commercial, or a mix of both, understanding the types of properties available will help you navigate the auction catalogues more effectively.
Once you’ve identified your target properties, carefully examine the auction descriptions, photographs, legal reports, energy performance reports, and property condition assessments. Paying close attention to these details can uncover valuable insights and potential issues, such as the property’s flood risk and the availability of insurance coverage.
To further refine your choices, utilise online resources to research historical auction prices for similar properties. This can provide valuable context on the current market value and potential for appreciation. Consulting with experts in your chosen property sector, can also offer invaluable insights, helping you navigate the complex details and make more informed decisions.
3 – Budgeting and Financing Your Bids
Know your budget and have the numbers at the forefront before embarking on any auction participation.
- Establish the amount you will invest
- Factor in auctioneer fees and property taxes i.e., use the stamp duty calculator
- Explore financing options
Determine a specific spending or investment limit, taking into account both the cost of the property and the associated fees, which typically include a buyer’s premium and any applicable taxes. While many auction houses accept cash payments, consider exploring financing options such as auction loans, credit lines, or working with a mortgage broker who can guide you through the financial aspects.
4 – Bidding Strategies and Techniques
Bidding strategies are crucial in maximising your chances of success in the auction environment.
- Pre-bidding
- Live bidding
- Online bidding
Many auctions offer pre-bidding options, allowing you to submit a maximum bid beforehand. If the pre-bid is the highest, you’ll secure the real estate without having to be physically present.
Live bidding, however, offers a thrilling experience, allowing you to gauge the competition and adjust your bids in real-time. For those unable to attend in person, online bidding platforms provide a convenient alternative.
Regardless of the method, be mindful of increment amounts, pace your bids strategically, and never let the heat of the moment cloud your judgment.
5 – Dealing with Auction House Policies
Participating in a property auction requires a thorough understanding of the rules and policies set forth by the auction house. These guidelines govern every aspect of the process, from registration to payment and dispute resolution.
- First and foremost, familiarise yourself with the registration process. This may involve providing specific documentation and paying any associated fees. Ensure you have all the necessary information and paperwork ready to submit in a timely manner.
- Next, review the payment terms carefully. Understand the accepted methods, deadlines, and any potential penalties for late or insufficient payments. This will help you plan your finances and avoid any unexpected complications on auction day.
- The auction house will also have policies in place for exchange and completion dates with keys to the property in your hand. Be sure to understand these arrangements, including any associated costs, to avoid any surprises after the auction.
Finally, it’s important to be aware of the auction house’s dispute resolution process. Should any issues arise, you’ll need to know the proper channels to address them and ensure a fair outcome.
6 – Your London Real Estate Broker: A Guiding Hand & Reliable Extended Team
Navigating the bustling world of London real estate auctions can feel like a daunting maze, but with your dedicated London Real Estate Broker, Stonelink International, by your side, you’ll have a trusted guide to lead the way.
Stonelink International has carefully curated a network of reliable partners to act as your extended team, including builders, surveyors, engineers, finance and mortgage brokers, and legal teams. Your personal property broker will leverage this comprehensive expertise to expertly guide you through every step of the auction process, but more importantly the type of property you are looking to buy.
From understanding the intricate rules and regulations to crafting winning bidding strategies, your broker will provide the insights and support you need for a seamless, successful auction experience. They’ll ensure you’re fully prepared, so you can confidently pursue the properties you desire.
Think of your broker as the steady hand that steers you through the complexities of the auction world. With our knowledge and experience, you can conquer the auction process with ease, secure in the knowledge that you have a dedicated professional in your corner.
Partner with your London Real Estate Broker from Stonelink International and unlock the full potential of the auction season. Call direct on: + 44 (0) 207 993 4081 or contact us for a fast response.
Together, you’ll navigate the maze and emerge victorious, ready to add your dream property to your portfolio.
