CapEx Properties

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

When we decide to invest in UK property and 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, this couldn’t be further from the truth!

Nowadays, property auctions are available to everyone and there’s no need to physically attend one. Online auctions are rising in popularity as a convenient way of bidding to buy property in the UK.

What Is An Online Property Auction?

Online property auctions are similar to traditional auctions. The main difference is that instead of bidding in person, you bid online.

Reputable online auction sites are safe and can have huge benefits to bidders, provided you know what you're doing. You can bid from anywhere – whether you’re on holiday, at work or even in bed! The experience can be calmer and more efficient.

How Does An Online Property Auction Work?

Step #1: View Properties

Just like a traditional auction, you’ll have the opportunity to browse the properties on auction and schedule a visit. Most online property auctions will have open house dates, rather than individual viewing appointments.

Step #2: Create An Online Account

If you’ve found a property to bid on, you’ll usually need to create an account on the auction house website. It should be free to join and relatively simple to sign up. You’ll normally need an email address to create an account.

Most online auction houses will ask for proof of identity, so you may need a picture of your passport and a utility bill to hand.

Step #3: Add Your Payment Details

Once you’re registered, you’ll normally need to add your payment details before you bid. This is because you’ll be charged an immediate deposit as soon as you win an online auction.

Step #4: Check the Sale-Type

There are two types of sales at online auctions, and you’ll need to check which one applies to the property you plan on bidding for.

The two types include:

  • An unconditional auction – Which is the same as a traditional auction, where the sale becomes legally binding immediately after bidding has closed. This means you’ll need to have everything agreed and sorted in advance of bidding (like mortgages or surveys).
  • A conditional auction – Which gives you the right to buy the property after you’ve won the auction. You’ll still be charged an immediate deposit. But you don’t need to have your mortgage, survey, or anything else finalised before you bid.

Step #5: Partake in Online Bidding

There are usually two ways to bid at an online auction. You can either:

  • Bid via proxy – Which is an automated bidding option. You set your maximum bid in advance and the system will automatically bid in small increments until you’ve reached your maximum.
  • Bid in real-time – Which is when you bid live against others. Each time you are outbid, you can enter your new amount on the system. Usually, online auctions have rules where the end time is extended if a buyer bids with less than five minutes to spare.

Remember that like any investment, you must make sure that you’ve done your own research on both the target property and that you have familiarised yourself with the auction company’s contract, so you know what’s expected.

CapEx Properties are your UK property buying agency, so if you’re looking to invest in UK property, we’d love to help!

Get in touch on +442039898010


How to invest in property in the UK

So, is the UK good for property investment? Yes, resoundingly so. Investing in UK property can be extremely attractive to foreign investors. Rental demand in the UK is inordinately high and outstrips supply year on year, as the country cannot build the required number of new homes that it needs, to service the population. As a result, historical capital appreciation has been as much as double digits, year after year, so the right investment in the right area, certainly can produce a healthy, long term capital gain. 

A market as fast and competitive as this one can be difficult to navigate especially as a foreigner buying property in the UK. So, whether you are relocating to London or planning to invest in a buy to let property, CapEx Properties is top of its class when it comes to assisting you in making a sound investment with good solid returns. 

If you are interested in procuring a property investment in the UK, you can contact us by completing our contact form. An expert broker will get back to you within 24 hours to talk about your needs and specifications. CapEx Properties offers a tailor-made experience to avoid the worry and stress of navigating the UK property market and endeavours to find you the best property investment in the UK. CapEx Properties has helped countless foreign clients find their ideal property and we pledge to do the same for you. 

About Us

CapEx Properties is an independently owned property search/buying agency, assisting international clients with the search & acquisition of UK properties.

Contact Details

CapEx Investment Properties Limited trading as Capex Properties is a company registered in England and Wales. Registration number 13324508.
Registered address: 128 City Road, London, EC1V 2NX, UK.