Buying a house at auction can feel exciting, fast-paced, and—if you're lucky—profitable. But for first-time buyers, it can also be intimidating. With no cooling-off period, tight deadlines, and legally binding commitments, auctions are not for the faint of heart.

This guide breaks down everything you need to know to approach your first property auction with confidence—and avoid costly mistakes along the way.

Why buy at auction?

Auctions can be a great option for first-time buyers who are:

• Looking for a fixer-upper or renovation project
• Hoping to buy below market value
• Comfortable with a fast and firm buying process
• Tired of being stuck in property chains

If you're prepared and do your homework, you can land a great deal—but you need to understand how the process works.

Step-by-step: how the auction process works

1. Search for auction listings
   Look on websites like EIG Auctions, Auction House, Savills, or iamsold. Filter by area, budget, and property type.
2. Order and review the legal pack
   The seller provides a legal pack, which includes title deeds, searches, lease info (if leasehold), and special conditions.
   Tip: Get a solicitor to review this before you bid.
3. Arrange a viewing
   Most auction properties allow viewings. Always go see the property in person and take someone with experience if possible.
4. Sort out your finances
   You’ll need 10% of the purchase price on auction day, and the remaining balance (usually 90%) within 28 days.
   Tip: Have a mortgage in principle or, ideally, be a cash buyer. Some buyers use bridging loans for short-term financing.
5. Register to bid
   Online or in-person—you’ll need ID and proof of funds. Make sure you understand all the auction terms and conditions.
6. Bid confidently
   Stick to your maximum budget. Don’t get carried away in the moment.
7. Pay the deposit
   If you win, you exchange contracts immediately and pay the 10% deposit on the day.
8. Complete the purchase
   You’ll need to complete (pay the balance and take ownership) within the timeframe set out—usually 28 days, sometimes 56.

Common risks and mistakes to avoid

Not reading the legal pack
Many first-time buyers skip the legal details, only to discover unexpected ground rents, service charges, or legal disputes.

Overbidding in the heat of the moment
Set a hard budget and stick to it. Auction fever can make you overpay—don’t forget extra costs like solicitor fees, stamp duty, and renovation work.

Assuming you can back out
There’s no turning back once the hammer falls. You’re legally bound to complete. If you don’t, you’ll lose your deposit and may be liable for additional losses.

Not getting a survey
Auction properties are sold as seen. Always arrange a survey (even just a basic one) if time allows. Many need significant renovation.

Relying on a standard mortgage
Most mortgages take too long to process for auction deadlines. You’ll need either cash, a fast-track mortgage, or bridging finance.

Pro tips for first-time auction buyers

• Visit multiple auctions as an observer before you bid
• Get a solicitor lined up early for legal pack reviews
• Have a full cost plan: deposit, fees, stamp duty, and repairs
• Look at auction results to see sold prices in your area
• Don’t fall in love with a lot—there’s always another one

Final thoughts

Buying a house at auction can be a smart move for first-time buyers, but it’s not without risk. Preparation is everything. By understanding the process, reviewing legal packs, arranging finances in advance, and bidding with discipline, you can secure a great property—without any nasty surprises.

Remember: At auction, it’s not just about the hammer falling. It’s about being ready when it does.