Auction

Buying a Property at Auction

Auctions offer a fast-paced way to buy and sell property and are popular with private buyers, investors, banks, and receivers. Unlike traditional purchases through estate agents, buying at auction requires immediate commitment. Once your bid is accepted, you must sign a binding contract and pay a non-refundable deposit on the spot.

It’s important to remain level-headed—auctions can be exciting, and even cautious bidders can get caught up in the moment and make impulsive decisions.

Steps to Buying a Property at Auction

View the Property: Contact the auctioneer and arrange to view the property.
Set a Budget: Estimate all associated costs – stamp duty, legal fees, and others. Determine your maximum price and stick to it.
Consult Your Solicitor: Engage us early so we can request and review title documents and contracts before the auction, and raise any necessary legal queries with the seller’s solicitor.
Survey the Property: Have a qualified engineer inspect the property. Bargain properties may conceal costly defects. Once you sign at auction, you cannot pursue the seller or auctioneer for any hidden issues.
Review the Map: Ensure the auction map accurately reflects the property boundaries and what is being sold.
Check Planning Compliance: Your engineer should confirm the property complies with planning permission and building regulations.
Investigate Local Development: Visit the Local Authority to check for any upcoming developments (e.g., roads, large housing estates, or waste facilities) that could affect the property.
Secure Financing: Arrange your finances before the auction. Be aware:
– You must sign a binding contract if your bid wins.
– You’ll pay a booking deposit at auction.
– A contract deposit (often 10%) may be required immediately.
– The remaining balance is due on the contract’s closing date.
Important: Auction properties are sold “as is” and not subject to finance or surveys. Failing to complete the purchase after a successful bid may lead to financial loss.
Familiarise Yourself with the Auction Process: Attend one or two auctions in advance to understand how bidding works.
Review Contract Amendments on Auction Day: There may be last-minute updates to contracts. Speak with your solicitor if changes involve the title, maps, or planning matters.

Bidding at Auction

Raise your hand or catalogue to place a bid. Properties usually have a reserve price, which is the minimum amount the seller is willing to accept.

What is a Guide Price?

An estimate of the price range a property is expected to achieve.

What is a Reserve Price?

The lowest price the seller will accept. If bids do not reach this threshold, the property will not be sold.

Closing the Sale

When bidding slows, the auctioneer will say, “Going once, going twice, for the third and final time… SOLD.” The property is sold to the highest bidder, provided the reserve is met.

If You Are the Highest Bidder

If your bid wins:
– You must sign contracts and pay a 10% deposit.
– Take a signed copy of the contract for your solicitor.

If your bid doesn’t meet the reserve, the auctioneer may record your details and consult the seller about next steps.

Completing the Purchase

Completion is usually within 4–5 weeks from the auction date, as specified in the contract. Your solicitor will handle the final legal steps.

Stamp Duty

Stamp Duty is payable by the buyer on property transactions. It varies based on:

Property type (residential vs. non-residential)
Property value
Buyer status (e.g., first-time buyer, investor)

Current Rates:

Residential Property (houses, apartments, duplex units): Up to €1,000,000 – 1%
Non-Residential Property (shops, land, warehouses): All property – 7.5%

Other Costs to Consider

Solicitor’s Fees: We charge a fixed fee. A portion must be paid in advance for auction properties. If your bid is unsuccessful, this payment is non-refundable.
Surveyor’s Fees: Cover inspections and map verification.
Insurance: Must be arranged for the property after the auction.
Life Cover: Required by lenders to protect the mortgage in case of death

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