Property auctions offer excellent opportunities, but they also carry risks for the unprepared. Here are the five most common mistakes buyers make at auction — and how to avoid them.
1. Not Reading the Legal Pack
The legal pack contains critical information about the property, including title documents, searches, and special conditions. Failing to review this thoroughly before bidding can lead to expensive surprises after purchase.
Solution: Instruct a solicitor to review the legal pack at least a week before the auction.
2. Not Arranging Finance in Advance
The most common reason auction purchases fall through is failure to arrange finance in time. With just 28 days to complete, you cannot afford to start the finance process after winning a lot.
Solution: Get an agreement in principle from a specialist auction finance lender before you bid.
3. Overbidding
The excitement of an auction room can lead to emotional bidding beyond your budget. This can turn a good deal into a bad one.
Solution: Set your maximum bid before the auction and stick to it. Factor in all costs including stamp duty, legal fees, and any works needed.
4. Ignoring Hidden Costs
The purchase price is just the start. Auction buyers often underestimate the total cost including:
- Stamp duty
- Legal fees
- Survey and valuation costs
- Finance arrangement fees
- Renovation or repair costs
Solution: Build a comprehensive budget before bidding that accounts for all costs.
5. Not Inspecting the Property
Some auction properties cannot be viewed internally before the sale, but you should always inspect what you can. External inspections, local area research, and online due diligence are essential.
Solution: Visit the property, research the area, and if possible, arrange a building survey before the auction.
Bid With Confidence
At StatusKWO, we help auction buyers prepare properly with fast, reliable finance. Contact us before your next auction to ensure you are ready to bid with confidence.