How do I buy at an auction now?
Like many aspects of the property market, auctions have had to adapt to a new normal since lockdown.
Big, bustling rooms packed with buyers have given way to virtual auction rooms where bidders participate remotely while following the action in real time online.
And if you want to learn more about how things are done now, you’re in the right place.
We spoke to two auctions aficionados: Christopher Coleman-Smith, who’s been director of Savills’ auctions team for more than two decades, and Andrew Morgan, co-founder of Hollis Morgan Auctioneers, to find out their top tips on buying at an auction.
Scroll down to read the highlights of our Q&A with each expert…
Christopher Coleman-Smith, Savills
How have auctions changed since lockdown?
Well, the biggest difference is that everything is done remotely now. We don’t hold auctions in big hotel ballrooms – everything takes place virtually or over the phone.
There are two ways of doing things now: a countdown auction and an interactive auction. A countdown style of auction involves multiple lots being sold at once and with viewers being able to follow numbers on a screen, whereas with an interactive auction, the auctioneer takes bids at the virtual rostrum as they would do in the auction room. Buyers have been absolutely fantastic in terms of how they’ve adapted. Auctions are about people, at the end of the day, and we’re still interacting with people.
How do people buy at an auction now?
It’s still very much the same in that people bid for a property they want to buy, except we and the bidders aren’t all in the same room. But the principles of buying at an auction remain the same. People still need to pre-register before joining any auction, just so that all the legal details can be taken care of.
Buyers have until the day before the auction to pre-register. Our property catalogues get published three weeks before the auction, and it’s just as important as ever to do your due diligence and do your homework. Then on auction day, you can log in to watch the livestream at any time and follow the action.
What’s your advice for home-hunters buying at auction in the current climate?
Like I said, my advice for buyers is still very much the same as it was pre-lockdown. The process may have been adapted slightly, but the do’s and don’ts remain the same. The main thing to think about is to get your finances in order before you seriously consider buying at auction.
Also, read the Ts & Cs of the auction house; make sure you know what needs to be paid, and when, so you don’t encounter any unexpected hiccups on the day. I’d also recommend setting a budget and sticking to it, getting your solicitor to review all legal packs, and viewing properties in person before bidding.
Can people still view properties in person?
Yes, they can. All viewings are staggered so that only a certain household is allowed inside a property at any one time and all the relevant social distancing guidelines are adhered to. Buyers can still get into properties to have a look.
What can people do to be best prepared for buying at auction?
The best preparation really is for people to do their homework thoroughly. The beauty of buying at an auction is that things can happen quickly so don’t go into something that you’re not fully committed to. Ask lots of questions and arm yourself with as much information as you can prior to auction day. Then, on the day itself, have a clear idea of what you want to buy.
Are there any strategies bidders could use?
Over the years I’ve seen lots of different approaches, but there is no hard and fast rule to successfully bidding on the property you want. I’ve not seen anything that works every time and of course everyone is different – some people like to leave a bid until the last minute whereas others like to go up in increments.
My advice would be to do whatever you feel comfortable with and give it your best shot.
What are the advantages of buying at an auction?
Buying at auction really is a great way of buying. On the day, the seller sells and the buyer buys. You walk out with a contract, which doesn’t happen if you go down the conventional route.
There is no faffing around for another six months, or a situation where you commit to something and then down the line you’re told you can’t have it. People like buying a property on the day, as it saves a lot of aggravation. You go to an auction and walk away with a property.
To view some of Savills’ most impressive homes, click here.
Andrew Morgan, Hollis Morgan Auctioneers
How have people reacted to the way auctions are conducted now?
The new era of auctions has actually started extraordinarily well. At our physical auctions, we’d typically get between 300-500 people turn up, whereas with our most recent virtual auction, we had 900 participants register online. What’s been great is that we’ve been able to recreate the same sort of vibrant atmosphere via the livestream. There’s obviously been a lot of pent-up frustration in the market and we’re seeing the evidence of that. People have taken to the virtual aspect very naturally; I think we’ve all been pleasantly surprised.
Are virtual auctions here to stay?
I think it was always going to go this way, but it’s probably happened 10 years earlier than some of us imagined. What’s also interesting is that people who didn’t think of themselves as computer literate are now quite savvy when it comes to virtual auctions, because they’ve had to spend time ordering and buying things online recently when otherwise they wouldn’t have done.
Why do auctions work so well?
There is an element of certainty about auction, you know the date you’re going to bid on a property, and you can get all your finances and everything else prepared ahead of time. The key advantages are that you know the seller has set their stall out, which shows that they mean business. A lot of people think they might get a bargain, too, and the ball is in your court if you want a property.
To view some of Hollis Morgan’s auction homes, click here.
