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What Is An Online Property Auction and How Do They Work?

Property Saviour » Modern Method of Auction » What Is An Online Property Auction and How Do They Work?

When we think of a property auction, we probably imagine a room full of investors with an auctioneer up front – hammer in hand – spouting numbers at record speeds.

These days, the opposite couldn’t be more true! Property auctions are now open to everyone, and there’s no longer a need to be there in person.

Online auctions are becoming increasingly popular for those looking to bid on properties in the UK. It’s a convenient way to do it! Read on to find out more!

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What Is An Online Property Auction?

Online property auctions are similar to traditional auctions, but with the difference that instead of bidding in person, you do so online.

Reputable online auction sites are safe and offer great advantages to bidders. You can bid from anywhere – be it on vacation, at work, or even in bed! The process is smoother and more efficient.

How do online property auctions work?

We aim to modernize the auction industry by providing a convenient option for sellers and buyers alike. We’ve developed two ways to participate in auctions online: Auction Events and Timed Auctions.

Auction Events are live-streamed with bidders registering before the auction day and bidding remotely with a live auctioneer in real time. Some timed auctions feature lots that you can browse and bid on at any time.

This means you can make the most of property investment opportunities without having to dedicate a large chunk of time to travel to an in-person auction.

You can purchase a new development, home, or commercial space from the comfort of your own home or wherever you have internet access.

What Is An Online Property Auction and How Do They Work
Reputable online auction sites are safe and offer great advantages to bidders.

What happens at an online property auction?

Online property auctions make it easy to view photos, access details about the home you have your eye on, and bid on and purchase it. Whether you’re buying or selling, online auctions provide the same benefits as traditional, in-person property auctions.

Although it’s all done online, you still have access to a broad selection of unique properties and transparent sales. When selling, you can usually opt for an unconditional or conditional auction. The main distinction between these two is as follows:

Unconditional online auctions

Online auctions are unconditional, which means contracts are exchanged as soon as the “hammer falls” or the online period ends (if the reserve has been met or exceeded). The completion of the process typically takes place 30 days from that point.

Conditional online auctions

Online auctions are a great option for sellers looking to move their property quickly. They have the potential to attract more buyers due to the extended period they provide for finance to be organised.

This is beneficial for mortgage seekers as it gives them enough time to apply for a loan or secure other funding before the deadline.

Before bidding, all prospective buyers must enter their payment information to authorise the sale. This means that the successful bidder can make a deposit payment straight away and the seller’s sale is guaranteed.

What are Conditional online auctions
Live online bidding is an option which is exclusive to Timed Auctions.

How does online auction bidding work?

While both Timed Auctions and live-streamed Auction Events are offered, it is essential to understand the differences between these two types of online auctions so you can make the best decision for your buying or selling needs.

We have provided information below about the ways you can bid in an online property auction to aid you in choosing the most suitable option for you.

  1. Live online bidding is an option which is exclusive to Timed Auctions. During this type of auction, the countdown is tracked in real-time online and bids are placed against others.
  2. Online bidding via live stream is done through our online Auction Events. It follows the format of a traditional auction but is transmitted online so you can bid remotely, negating the need to attend the auction in person.
  3. Proxy bidding is another option available in live-streamed auctions. The auctioneer will increase bids on your behalf up to the amount you stated in your registration form.
  4. Telephone bidding, bidding over the phone is also allowed at live-streamed auction events. The auction team will call you and guide you through the bidding process in real time.

When the price is suitable, you can place a bid through the phone. This is great for those who are anxious about watching the auction live, but still want to know what’s going on and be helped through the process.

How do you buy an auction property online?

If you’re an experienced investor or looking for a place to call home, you can place bids on properties online in our Timed Auctions or our live-streamed Auction Events. No matter your experience level, you can take advantage of these opportunities.

How to sign up for Timed Auctions?

Signing up for Timed Auctions is straightforward:

  • Step 1: Create an account and sign in – Signing up is totally free and super easy. By registering, you’ll be able to bid on properties in our online Timed Auctions, instantly access legal documents, view our properties, and watch other online auctions.
  • Step 2: Add a payment method – Before you can start bidding, add a payment method to your account.

If you want to take a look at your options first – Use the ‘watch’ feature on the lot you’re interested in to stay up to date with the highest bid. This will give you the flexibility to decide to place a bid at a later stage, without having to commit straight away.

How to sign up for our Timed Auctions
By registering, you'll be able to bid on properties in our online Timed Auctions, instantly access legal documents, view our properties, and watch other online auctions.

How to sell an auction property online?

If you’re looking to sell your property through an online auction, our step-by-step guide will help you understand the process. We’ll cover how to agree on a suitable reserve price, set the terms of the auction, and more.

  1. Step 1: Choose your method and set your reserve price. Firstly, decide which method (conditional or unconditional) you want to use. Then, agree on a reserve price with the auctioneer. This is the minimum amount you’re willing to sell your property for, so it won’t be sold for less than you’re happy with.
  2. Step 2: Have all your legal documents ready. Before the auction begins, make sure you have all the relevant legal documents. These should include title registers, land registry, any special conditions, and more. If you don’t have a solicitor, we can recommend one of our legal partners to do this for you.
  3. Step 3: Set the terms of the auction. This only applies to Timed Auctions. Decide how long the auction should accept bids for – this can range from 24 hours to 30 days. Often, the property will be marketed online before the bidding opens to generate interest.

For unconditional online auctions, when the auction time is up and the reserve price is met or exceeded, the successful bidder’s payment method will be charged a holding deposit and the exchange will take place.

This means you’re legally obligated to sell the property at the full price offered by the bidder.

Finally, for conditional online auctions, the exclusivity period will start once the auction ends. Contracts must be exchanged and the sale completed within 60 days. If the deadline isn’t met, you’ll be liable for auction fees and the buyer will get a refund of their reservation fee.

Thinking Of Selling Your Property?

If you are considering selling a property in other ways, we’d be delighted to assist! Contact us to guide you.

auction hammer

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  • The price we’ll offer is the price that you will receive with no hidden deductions.
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