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FAQs

Whether you have queries relating to property auctions or you're finding lease contracts difficult to understand, our Frequently Asked Questions section is designed to shed more light on common questions.

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Buying Property

Can you buy a house at auction?

Property auctions don’t just sell commercial properties. At Pugh we regularly list terraced houses, city centre apartments, and detached homes perfect for first time buyers – to name only a few!

You can buy houses at auction exactly as you would find with an estate agent, and you can often find our auction properties listed on portals such as Rightmove.

07/12/22 by
Is it worth buying property at auction?

Purchasing property can be a very worthwhile investment. If you do your research before, set yourself clear financial limits and commit to them, then you’ll find that you have a more positive experience at auction that via an estate agent.

Bidding at auction is legally binding, so if you’re the winning bidder you legally own the property immediately so there is 0 risk of gazumping. Many people find that auctions are more stress-free, faster and secure than alternative buying routes.

20/12/22 by
Are auction bids legally binding?

At online auction, the winning bid becomes a legally binding contract soon as the auction ends. This is why property auctions offer unparalleled for property sale speed and bother buyer and seller security – with absolutely 0 risk of gazumping.

20/12/22 by
What is a pre-authorised bidding deposit?

As part of the bidding registration process, we require a pre-authorised bidding deposit.

The term 'pre-authorisation' means a hold is placed on funds in your account to the value of the bidding deposit for each lot you have registered to bid on. Whilst this hold is in place, the amount will be ring-fenced and will be unavailable to you to spend until after the hold is released.

The pre-authorised bidding deposit amount is £2,000 per lot unless the lot is guided at Nil reserve where the bidding deposit will be £500 or where an alternative amount is stated within the marketing particulars.

This pre-authorisation will automatically be processed against the debit card provided in your registration from the Monday of auction week and once this is successful you will be approved to bid.

If you are the successful bidder the bidding deposit will be taken and put towards the sale deposit/buyer’s premium. If you are unsuccessful with bidding then the hold on funds will be released. However, please be aware this may take up to 7-10 days until these are available to you which is entirely dependent on the card issuer.

13/12/22 by
What is the procedure when buying property at an online auction?

To buy property at an online auction you simply need to follow these steps: create an account, register to bid, complete identity checks, complete fund authentication, pre-authorise that we’re allowed to take a deposit if you win, then bid!

To find out how to get started, follow our more in-depth guide here

02/03/17 by Paul Thompson
Can you view an auction property prior to auction?

In most cases, it can be arranged for interested parties to view properties due to be auctioned before the auction date. These are often block viewings at a set date and time. All interior viewing appointments can be arranged via this website (you can book a viewing from the individual property particulars pages) or by contacting the office on 0345 505 1200

However, it’s worth noting that sometimes it isn’t possible to arrange a viewing. But we try to provide video tours of properties on YouTube where possible in this instance.

02/03/17 by Paul Thompson

Selling Property

How do I sell a property at auction?

Selling property at auction is a straightforward process. Simply decide when you want to sell, book a free property appraisal for expert valuation advice, agree on a guide price and offer us formal instruction to proceed. 

At this point, we will draft particulars for your approval and confirm your solicitor’s legal pack. Finally, we’ll market your property to our whole client base and inform you of any pre-auction offers. After that - it’s auction day! We’re sure you’ll see success with Pugh, but if you don’t receive the bid you wanted at live auction then we can push for post-auction offers as an alternative sale avenue. 

For more in-depth information please see our full guide here

05/02/18 by Paul Thompson

Auctions

Are auction properties cash only?

No, quite the opposite. Online property auctions are done entirely online, so that means no physical cash is exchanged. As long as you have the finances to commit to your auction purpose and arrange them prior to bidding you can choose multiple financial options, including a bridging loan or mortgage!

12/12/22 by
Are auction houses regulated?

The UK’s leading auction houses, including Pugh, are regulated by RICS (Royal Institute of Chartered Surveyors). This means that auctions follow a regulated set of professional guidance, making them extremely secure.

13/12/22 by
What is an Addendum in the auction catalogue?

The Addendum represents any amendments or additions to the pre-printed information in the catalogue. The Addendum can be updated right up to the start of the auction, so it is important that you check this information before placing any bids.

02/03/17 by Paul Thompson
Why has a lot been withdrawn before auction day?

From time to time, lots are sold or withdrawn prior to the auction. It is recommended to check the website regularly to see if there have been any changes to the status. If you are interested in a specific lot, you can also make an offer before the auction which will be passed to the vendor for consideration. Any lots that have been withdrawn or pre-sold will be announced before or during the auction.

02/03/17 by Paul Thompson
What is a reserve price?

The Reserve Price is the seller’s minimum acceptable price at auction and the figure below which the auctioneer cannot sell. The reserve price is not commonly disclosed and remains confidential between the seller and the auctioneer. Occasionally a property may be listed with no reserve. This means that technically the lot will be sold if an offer is received - even as low as £1.

Both the guide price and the reserve price can be subject to change up to and including the day of the auction.

02/03/17 by Paul Thompson
What is a guide price?

The guide price is an indication of the seller's current minimum acceptable price at auction. The guide price or range of guide prices is given to assist consumers in deciding whether or not to pursue a purchase. 

It is usual, but not always the case, that a provisional reserve range is agreed upon between the seller and the auctioneer at the start of marketing. As the reserve is not fixed at this stage and can be adjusted by the seller at any time up to the day of the auction in light of interest shown during the marketing period, a guide price is issued. 

This guide price can be shown in the form of a minimum and maximum price range within which an acceptable sale price (reserve) would fall, or as a single price figure within 10% of which the minimum acceptable price (reserve) would fall. A guide price is different to a reserve price. Both the guide price and the reserve price can be subject to change up to and including the day of the auction.

02/03/17 by Paul Thompson
Can you buy an auction property before the auction?

If you are interested in a specific lot, you can also make an offer before the auction which will be passed to the vendor for consideration. Any lots that have been withdrawn or pre-sold will be announced before or during the auction.

Please be aware that you must be in a position to exchange and pay your deposit before the auction date if your offer is accepted.

02/03/17 by Paul Thompson
How do I register to bid in an online auction?

You must first create an account to register to bid at Pugh’s online auction. You can do this using the button in our header, we just need to collect a few details, verify your identity, and confirm your pre-authorisation of funds if you’re a winner.

For full details, view our buyer’s guide.

01/03/21 by Paul Thompson