Properties listed at auction do not always sell on the day. If a property fails to meet its reserve price (the minimum price the seller will accept), it remains unsold. However, this can present a great opportunity for buyers to negotiate a better deal. This guide explains how to buy unsold auction properties, including where to find them, how to negotiate, and key legal considerations.
1. Why Do Properties Remain Unsold at Auction?
A property may remain unsold at auction due to:
- Unrealistic reserve price – If bidding does not reach the seller’s minimum price, the property is withdrawn.
- Lack of interest on the day – Some properties attract fewer bidders due to location, condition, or financing challenges.
- Legal or structural issues – Buyers may avoid properties with title defects, short leases, or planning complications.
- Economic conditions – In slower markets, buyers may be more cautious, leading to unsold lots.
If a property fails to sell, it often becomes available for post-auction negotiation, sometimes at a reduced price.
2. Where to Find Unsold Auction Properties
If you are interested in buying an unsold auction property, here’s how to find them:
Check the Auction House’s Website
Most auction houses list unsold properties on their website after the auction. Popular UK auction houses include:
Contact the Auctioneer Directly
Auctioneers often continue selling unsold lots privately after the auction. Contact them to:
- Request a list of unsold properties
- Express interest and negotiate directly with the seller
Monitor Property Portals
Some unsold properties are later listed on:
Visit Future Auctions
Sometimes, unsold properties are relisted in a future auction with a lower reserve price.
3. How to Buy an Unsold Auction Property
Step 1: Research the Property
Before making an offer, gather essential details:
- Check the auction catalogue for guide price, property condition, and legal information.
- Review the legal pack – This includes title deeds, leases, planning permissions, and searches.
- Arrange a property viewing – Inspect the condition before making an offer.
Step 2: Contact the Auction House
- Call the auctioneer to confirm if the property is still available.
- Ask if the seller is open to offers below the reserve price.
- If interested, make a formal offer in writing.
Step 3: Negotiate the Price
- Many sellers of unsold auction properties are motivated to sell quickly, allowing room for negotiation.
- Use the lack of interest at auction as leverage for a lower price.
- Compare with recent local sales to justify your offer.
Step 4: Secure Financing
- Cash buyers have an advantage, as auctions typically require fast completion.
- If using a mortgage, check if the lender will finance auction properties (some require habitable conditions).
- Consider bridging loans if you need short-term financing.
Step 5: Exchange Contracts and Complete the Sale
- If the seller accepts your offer, you’ll sign contracts and pay a deposit (usually 10%).
- Completion usually happens within 14 to 28 days, unless agreed otherwise.
- Arrange legal checks with a solicitor before exchanging contracts.
4. Key Considerations When Buying Unsold Auction Properties
Legal Risks
- Some unsold properties have legal or structural issues that deter buyers.
- Review the legal pack carefully and get a solicitor to check for red flags.
Hidden Costs
- Auctions typically charge a buyer’s premium (often 1-2% of the sale price).
- Factor in stamp duty, renovation costs, and legal fees before purchasing.
Time Sensitivity
- Sales must complete quickly, often within 14-28 days.
- Have funds ready in advance to avoid missing deadlines.
Property Condition
- Many auction properties require renovation – budget accordingly.
- If major repairs are needed, consider costs vs. potential resale value.
5. How Fraser Bond Can Help
At Fraser Bond, we specialize in helping buyers find and acquire undervalued properties, including unsold auction lots. Our services include:
- Auction property sourcing – Finding the best post-auction deals.
- Market analysis – Assessing property value and investment potential.
- Legal and financial guidance – Connecting buyers with solicitors and lenders.
- Negotiation support – Securing the best price for unsold properties.
If you're interested in buying an unsold auction property, contact Fraser Bond for expert advice on finding profitable opportunities.
Conclusion
Buying an unsold auction property can be a great way to secure a below-market-value investment. By contacting auctioneers, negotiating effectively, and ensuring legal checks are done, you can acquire a property at a reduced price. However, always consider risks such as legal issues, financing challenges, and renovation costs before proceeding.
For those looking to find and buy unsold auction properties, Fraser Bond provides expert advice and market insights to help you make a smart investment.
