Question 1

What happens when you buy land at auction?

Accepted Answer

Buying at auction is an assured way of securing a purchase. Once a bid is accepted, contracts will be exchanged on the day of the sale. The seller cannot withdraw from the sale, nor is it possible for any kind of guzumping to take place.

Question 2

Do you need cash to buy land at auction?

Accepted Answer

You don't need to be a cash buyer to purchase a property at auction. You can use specialist auction finance. A finance specialist can help you secure the funding you need within the short time frame, allowing you to make bid on a property without necessarily having the funds upfront.

Question 3

Do you need a solicitor to buy land at auction?

Accepted Answer

Taking legal advice is part of your necessary due diligence before you bid. Some regular auction buyers may feel experienced enough to do this work themselves, but for others we recommend that you do consult a solicitor. If required, do speak with the auctions team about who to use and what you need them to do.

Question 4

How much are auction fees on land?

Accepted Answer

The starting rate for an auctioneer's commission will usually be around 2% + VAT or more and that's only paid when the property successfully sells.

Question 5

What happens if you buy a property at auction but can't pay?

Accepted Answer

The exact amounts you'll be liable for will vary depending on the auction house you've bought through, and the circumstances of the seller. The penalties can include having to pay the seller for damages, and even depreciation, depending on what happens in the future.

Buying land at Auction FAQs