How to Buy at an Auction

Tactics in the Auction Room

An auction room is an intimidating place for the layperson. Sometimes it’s easy to follow. Sometimes the delivery is so stylised or so fast that it all goes by in a blur. For that reason, it makes sense to go to a few local auctions before the one that contains anything you might be interested in. It will make you much more comfortable with the process.

If you’re going to bid, make yourself known to the auctioneer beforehand and sit somewhere in the room where you can be seen clearly by them and where you can see all of the other people in the room, especially the other bidders. You’ll have to look closely because many of them have developed ways of bidding, such as a slight raising of the eyebrows, that the auctioneer is looking out for but which are designed to conceal their interest.

One of the more amusing aspects of auction rooms, particularly those that aren’t quite full, is the ‘move to the back’. People will sit down near the front initially but when it comes to bidding time, many people will abandon their chairs and decide to stand on the back wall — in order to get a better view of proceedings (and their competition) and perhaps take themselves out of the spotlight a little.

The first bids will be spoof bids as the process seems to reluctantly get into gear. But then it will speed up. Don’t join in the bidding until it starts to slow down again, and the increments by which the price is rising become smaller.

Then you can see by the turn of the auctioneer’s head and his outstretched arm, just who you’re really up against. Watch out for the telephone bidder: the person, possibly a member of the agent’s staff, who confers into a telephone before making a bid. There may or may not be somebody on the other end of the line. It might just be a ruse to get the bidding up.

If You’re Successful

You’ll need to arrange funding prior to the auction. If your bid is successful, you’ll be expected to pay a 10% deposit there and then (many auction houses insist on a banker’s draft but some will accept a cheque — contact the auctioneer for details to make sure you have the right payment) and the remaining 90% within 28 days. You’ll also need to bring along some ID (passport is best) on the night.

Useful Information

Identify the main auction houses in your area using plotfinder.net and online property search engines. Essential Information Group (eigroup.co.uk) – for a subscription – offers comprehensive and searchable details on all UK properties going to auction (and has a database of past sales). Also, try national property auction houses such as Allsop (allsop.co.uk) and Pugh & Co (pugh-auctions.com), who tend to have quarterly auctions in the main cities, but sell both commercial and residential property across the country.