How to bid at a property auction

Before you can bid, you need to register with the auctioneer. Leave plenty of time, as checks can take a while and some auctioneers close registration before the sale.

Registration and ID checks

Property and land auctioneers must register with HMRC for anti-money laundering supervision. HMRC expects an auctioneer acting as an intermediary to identify and verify customers on both sides, the buyer and the seller. RICS describes these checks as a legal requirement. Expect to provide:

• photo ID, such as a passport or driving licence;
• proof of address, such as a recent utility bill or bank statement;
• details of where your money is coming from;
• company documents and details of who owns or controls the company, if you are buying through one;
• payment details for the deposit and fees.

Ways to bid

• In the room: make your bid clear to the auctioneer. If the hammer falls on your bid at a traditional auction, you have exchanged contracts.
• Live online or livestream: you watch the sale on screen and bid through the platform. Allow for connection delays.
• Timed online: bidding is open for a set period. Many platforms extend the end time when a late bid arrives, so the finish can move.
• Proxy bid: you authorise the auctioneer to bid for you up to a set maximum. You usually have to provide the deposit in advance.
• Telephone bid: a member of the auctioneer's staff calls you during the lot and bids on your instructions.

Not every auction offers every method, so check the auctioneer's terms.

On the day

• Read the addendum for late changes before your lot.
• Set your maximum beforehand, including fees and tax, and stick to it.
• Lots can be withdrawn or sold before the auction. Check with the auctioneer.
• Online, RICS advises not waiting until the last moment to bid.

When you win a traditional auction, you are usually bound by the memorandum of sale and must pay the deposit straight away. Make sure a solicitor has reviewed the legal pack before you bid.