Auctions Explained - Your step by step guide to buying at auction

If you have never been to a property auction before, or bought or sold through an auction house it may seem like a daunting prospect. Well, don't worry because our step by step guide will walk you simply through the process as a buyer. If you're still unsure of any part of this process, just call us on 0208 543 1111 and we will do our best to guide through this alternative way of buying your property - it's as simple as that!

Step 1 - Find an auction

Search for an auction taking place at a time/venue that is suitable for you. Gibbs is a good choice on 19th November 2008 in Covent Garden, Central London! Have a look through our catalogue to identify those properties that interest you and suit your needs. For example location, any refurbishments, is there potential to extend? Check our guide price listing to see if it's within your budget.

Step 2 - Viewing

Each of our properties have viewing times arranged. Check our catalogue and website for a list of viewing arrangements.

Step 3 - Finances

Work out how much you can afford, what your absolute maximum price is and what you're ideal buying price is. Estimate your total costs including; repairs, decorations, solicitors' fees, survey, stamp duty, mortgage interest charges, removal charges, furnishings etc. Then add this to the amount that you will need to borrow. Remember that if your bid is successful you will need to put down a 10% deposit (or £2,000, whichever is greater) on the day of the auction. You will also be expected to complete within 28 days, so you must have a firm offer of a mortgage before bidding for the lot, or have cash finances ready.

Step 4 - Legal

Arrange legal assistance, either a solicitor or licensed conveyancer. Legal enquiries such as Local Authority and Land Registry searches need to be carried out before you bid. We can provide you with a legal pack. This contains legal documents outlining special conditions of sale and title deeds' details.

STEP 5 - Survey

If you're taking out finance for the property lenders will require a survey to be carried out. You will need to arrange this through your lender and us before the auction day.

STEP 6 - Bid prior to the Auction

You can submit an offer in advance of the auction. We will submit your offer to the vendor and if they are happy with it, the property can be sold prior to the auction. This will eliminate any risk of you being out bid on the auction day.

STEP 7 - Payment

If your bid is successful, you will need to put down a deposit on the property as soon as the hammer goes down. You are required to pay a deposit on the day so ensure you have this deposit ready to pay before you go to the auction. Deposit payments can be taken by bankers drafts, building society cheque or personal cheque with prior approval. If you're getting a bankers or building society draft drawn up, get it written for the maximum of your budget as we can always refund you the difference.

STEP 8 - Confirm the Lot

Before you set off for the auction, call us to double check that your Lot is still going to be offered and hasn't been sold prior to the auction.

STEP 9 - Be On time

Arrive at the auction venue in plenty of time. Get a seat near the front so you can hear the auctioneers' announcements and speak to a member of staff if you have any last minute queries. It will also give you time to register your interest to buy and check if any addendums have been added to the lot (s) that you are interested in.

STEP 10 - Bidding

When your Lot number comes up, the Auctioneer will announce the address. Check that it is the Lot you have come to buy. Use your hand or catalogue to signal a definite intention to bid and catch the Auctioneers' eye. If a bid is received higher than your own, the auctioneer will return to you in case you wish to increase it. When the bid is about to close, the auctioneer will announce "for the first time, for the second time, for the third time and final time - sold!"

STEP 11 - Winning the lot

Most Lots have a reserve price. If your bid is the highest and the reserve has been met you are the winner and the vendor is legally contracted to sell the Lot to you. You will need to fill in a Memorandum of Sale detailing your name, address, contact information and that of your solicitor. You will exchange this for the Vendor's part as soon as it is ready. This becomes your contract and should be sent straight to your Solicitor. You will also be asked for proof of ID and your 10% deposit.

STEP 12 - Insurance

If you are the highest bidder and the reserve has been met, the property becomes your responsibility the second the hammer goes down. You will need to ensure that you take out the necessary buildings/contents insurance as soon as possible.

STEP 13 - Final Balance of Payments

As the highest bidder, you are contracted to complete. The final balance of payments need to be transferred within 28 days of the auction, unless otherwise stated.