Buying a property at auction: What happens on auction day?

There’s nothing quite like the excitement of auction day. For all the hopeful buyers that join us, it marks the pay-off point for all the effort and hours of hard work put into researching, viewing and preparing to bid on the property they’ve got their eye on. In the span of just a few minutes, you could become the new owner of a plot of land, commercial property or residential home. 

With things happening so quickly, it pays to do the prep-work and make sure you have the best chance possible of securing the result you want. To help you do just that, we’ve broken down the key tasks you’ll need to complete before the auction day arrives, a step-by-step of what happens during our Auction Events themselves, and a summary of what comes next. 

What needs to be done before the auction?

If you’ve got far enough in your buying journey to find our auction day guide, you’ve likely already found a property in our listings that you’re seriously considering bidding on. If so, congratulations! This is the first (and arguably most important) step in taking part in one of our live streamed auctions. However, if you’re still looking or want to keep your options open in case bidding doesn’t go your way on the day, we recommend taking a look at our Auction Events catalogue, or browning through the full property search page before moving onto the next steps.

• Get your finances in order. An essential part of the auction bidding process is to make sure you have all your finances in place before you start bidding. Sales made at auction are binding from the moment the hammer falls, meaning you’re contractually obligated to complete the sale within the pre-specified time period (usually 30 or 60 days, depending on if the sale is conditional or unconditional). To make sure you can achieve this, whether you’re a cash buyer or you’re accessing mortgage or loan support, you should set a strict budget that you know you can meet if your bid is successful. Learn more about what auction financing routes are available with our full guide page.
• Contact a solicitor. Next, you’ll need to reach out to a solicitor to represent your interests if you’re successful in placing the winning bid. You can skip this step and proceed with your bid registration first if you are still choosing between solicitors, so long as you pass on their details to us later. We can also help connect you to our conveyancing partners if you would like assistance getting a quote, just select that option under the ‘Solicitor Details’ section of the bidder registration form.
• Register to bid. Finally, you’ll need to register your details with us ahead of the auction by filling out our ‘Register to Bid’ form. This needs to be completed at least 24 hours before the Auction Event, but we recommend doing this as early as you can so that we have enough time to process your request. Within the form, you’ll be asked to enter your personal details, property (or properties) of interest, and solicitor information. You’ll also need to select your preferred method of bidding (Internet, Telephone or Proxy), all of which have dedicated guides to talk you through the processes involved in each:
• A guide to auction Internet bidding
• A guide to phone bidding at auction
• A guide to carrying out a proxy bid

Can I make an offer prior to auction day?

Yes! Whether you’re worried about losing a property to another bidder or are in a hurry and want to make a fast purchase by skipping the wait to auction day, you can make an offer on a lot ahead of the auction. We’ll pass on your offer to the seller, and get back to you with their decision on whether or not they want to agree to the sale or proceed to auction. Be aware that, if you are successful at purchasing prior to the auction, the sale will still be completed within auction conditions. 

If you want to do this, you can do so by sending an email to our team at offers@sdlauctions.co.uk. As long as your offer exceeds the guide price and is attractive enough to the seller to miss out on a potentially higher sale through bidding, it may be accepted ahead of the auction.

What happens on the day of the auction?

With research, preparation and registration all out of the way, all you have to do is wait for auction day to roll around (usually on the last Thursday of every month) and get ready to bid on your property. The auction itself is all live streamed online so that you can easily access the whole event, and take part in whatever way you’ve selected while registering. The flow of the day is as follows:

• Auction day arrives! For every Auction Event we hold, we have a catalogue which can be viewed on our website. Within this, we include all the essential information about that auction, including all of the properties listed (in order of sale so you know when your ideal property will be auctioned). We also update this with any last-minute changes, including if a property has been sold prior to the auction, so that there are no surprises. 

• Bid on your property. Once the auction commences and your lot is announced, you’ll be able to begin bidding to try and secure the sale. How this will work depends on your chosen bidding method:

1. 1. Internet bidding – Watch the auction live on a stable internet connection and place your bids through our website. 
   2. Phone bidding – Before the lot you’ve registered to bid on comes up, a member of our team will call you and place bids following your over-the-phone instructions.
   3. Proxy bidding – There’s nothing for you to do on the day itself, instead the auctioneer will bid on your behalf in the auction, following your pre-instructed limits.
   4. If you’re successful, complete the sale. If things go your way and you place the winning bid, the last step will be to exchange contracts. If the property you’re buying is being sold unconditionally, we’ll take your deposit immediately (this will be detailed in the property information, but is usually 5-10% of the sale price), and you’ll have a further (usually 30 days, again this is detailed in the property information) to pay the remainder of the purchase amount. If the sale is conditional, we’ll instead take the reservation fee, and you’ll have the following pre-agreed time period (usually 60 days) to pay the purchase price. 

What happens if a reserve price has not been met?

In some cases, you may fail to win an auction property even if you are the highest bidder. This happens when your bid amount doesn’t match or exceed the property reserve price set by the seller prior to the auction. If this happens, we may reach out to you after the auction has concluded to discuss whether or not a sale can still be agreed (under auction conditions) between you and the seller. For rare unsold properties such as these, most achieve a sale the same day or shortly afterwards. 

For properties that you didn’t bid on, but which caught your eye during the auction and weren’t sold, you can also get involved in the post-auction action. Though we won’t reach out to you unless you registered your interest beforehand, you can find the property in question in the unsold lots area of our site, and send an enquiry through the listing itself.

What happens after the sale?

If you’re successful in your bid during the auction, the next step lies with us. As mentioned, we’ll automatically take your deposit or reservation fee, and instruct both your and the seller’s solicitors to complete the sale. Depending on whether the auction was conditional or unconditional, final completion can take up to 60 days, with typical timelines sitting at 60 days for conditional and 30 days for unconditional. We’ll then exchange contracts and once all the ‘t’s have been crossed and the ‘i’s have been dotted, you’ll get the keys to your new property!

Ready to buy at auction?

While it certainly pays to know all the ins and outs of auction day, before anything else can be arranged, you’ll want to find a property worth getting excited about. In our Property Finder, you can see all of the lots we have available in our upcoming auctions. 

Alternatively, if you’ve still got questions about the auction process, our friendly team is always on hand to help. Simply reach out to our team by email, phone (0800 046 5454) or live chat to get personalised assistance, or head over to our full Buyer’s Advice Guide to read our other helpful articles.