Buying at Auction: Why You Need a Survey First

Property auctions offer opportunities to purchase homes quickly and sometimes below market value. However, auction purchases carry significant risks. Unlike standard property purchases, auction sales are legally binding immediately. As RICS chartered surveyors, we explain why surveys are absolutely essential before bidding at auction.

How Property Auctions Work

Property auctions differ fundamentally from standard purchases. Properties listed in auction catalogues weeks before, viewings arranged by auctioneers, legal packs available for review, bidding on auction day (online or in-person), and exchange happens immediately when hammer falls. Completion typically 28 days later with 10% deposit paid immediately. No cooling-off period exists - once you've bid successfully, you must complete.

Why Auction Properties Need Surveys

You Can't Withdraw After Winning

Standard property purchases allow withdrawal before exchange. Auctions don't. When you win, you're legally committed. Discovering problems afterward leaves you stuck with an expensive mistake. Surveys before bidding protect against this.

Auction Properties Often Have Issues

Properties go to auction for reasons. Many have significant defects, require extensive renovation, or have legal complications. Sellers often choose auctions because traditional sales fell through due to survey findings. Our experience shows 70%+ of auction properties have noteworthy defects.

Limited Viewings

Auction viewings are brief, often 15-30 minutes. Properties may be tenanted or empty. You can't thoroughly assess condition in short viewings. Professional surveys reveal issues casual viewings miss.

Legal Packs Don't Replace Surveys

Legal packs contain property information, searches, and title deeds. They don't include building condition assessments. Solicitors review legal aspects; surveyors assess physical condition. Both are essential for auction purchases.

Auction Survey Process

Step 1: Identify Potential Properties

Review auction catalogues online or in print. Properties typically listed 3-4 weeks before auction. Attend viewings to shortlist properties worth surveying. Don't commit to surveys until you've viewed properties.

Step 2: Arrange Urgent Survey

Time is limited before auctions. Contact surveyors immediately after viewings. We prioritize auction surveys understanding tight timescales. Surveys typically completed within 3-5 working days. Some surveyors offer express services for auctions.

Step 3: Review Survey Report

Read reports thoroughly before auction day. Identify all defects and estimated repair costs. Consider whether issues are acceptable and affordable. Use findings to set maximum bidding limits.

Step 4: Calculate True Costs

Add purchase price, repairs identified, renovation costs, auction fees (typically 2-3% + VAT), and contingency for unexpected issues. Ensure total cost doesn't exceed property's repaired value.

What Survey Level for Auctions?

Most auction properties need Level 3 building surveys due to older age, poor condition, or renovation requirements. Level 2 homebuyer reports may suffice for standard modern properties in reasonable condition. When in doubt, choose Level 3 - comprehensive information is crucial when you can't withdraw.

Common Auction Property Problems

Our surveys of auction properties in Cannock and Staffordshire regularly identify serious structural movement requiring underpinning, extensive damp throughout properties, dangerous electrical installations, roof replacements needed, subsidence issues, asbestos present, serious disrepair from neglect, and defective drainage systems. These can cost £20,000-£50,000+ to remedy.

Using Survey Findings

Set Your Maximum Bid

Calculate property value after repairs minus repair costs, renovation budget, profit margin (if investing), and contingency. This gives maximum sensible bid. Don't exceed it in auction excitement.

Decide Whether to Bid

Sometimes surveys reveal problems making properties unsuitable. Better to lose survey fee than complete disastrous purchase. If issues are too extensive, walk away.

Plan Post-Purchase Works

Surveys provide detailed repair specifications. Use reports to obtain contractor quotes before auction. Arrange contractors to start immediately after completion. Detailed planning prevents delays and ensures budgets are accurate.

Risks of Buying Without Surveys

We regularly hear from buyers who purchased at auction without surveys discovering expensive problems after completion. Recent examples include structural issues costing £45,000 to repair, hidden damp requiring £15,000 treatment, and illegal alterations needing removal. These buyers are stuck with properties and massive unexpected costs. Surveys costing £600-£1,000 would have revealed these issues.

Auction Survey Costs

Survey costs are similar to standard purchases: Level 2 reports £400-£600, Level 3 surveys £700-£1,200, and Express services add £100-£200. Small investment compared to potential losses from purchasing problem properties.

Timing Considerations

Arrange surveys minimum 10 days before auction for standard turnaround. Express services possible with less notice but cost more. Never bid without receiving and reading survey report. Don't risk purchase without professional assessment.

Other Auction Considerations

Beyond surveys, arrange solicitor review of legal pack, confirm mortgage offer if needed, have deposit ready (10% of purchase price), understand completion requirements, and plan renovation works. Comprehensive preparation prevents problems.

Get Auction Property Surveys

If you're considering bidding on Cannock or Staffordshire auction properties, contact our surveyors immediately. We understand auction time pressures and provide fast comprehensive surveys helping you bid with confidence.

Don't gamble on auction purchases. Professional surveys cost far less than discovering problems after commitment. Make informed decisions and protect your investment.