Can you score a Christmas bargain during the December property auctions?

Investors and homebuyers looking to grab a bargain this Christmas should consider trying their luck at a property auction.

For most, the real estate market becomes quiet from the second week of December, while attention turns to the holidays.

This means eagle-eyed buyers may be able to snag a bargain on the open market, but property auctions could prove an even better way to secure a downside price.

There are major auctions this and next week. Auction giant Allsop will have 225 lots under the hammer on Thursday, December 14, followed by another 165 lots on Tuesday, December 19.

Savills Auctions will also be holding its last sale of 2023 tomorrow. The catalog features over 220 plots across the UK, including a mix of residential, commercial and development options.

There's something to suit every budget, from a Grade II listed building with three apartments in Chelsea with a guide price of £1.95 million, to a three-bedroom house in County Durham with a guide price of just £15,000.

Robin Howeson, head of Savills Auctions, says: 'We sell opportunistic properties all year round and December can be a great time to find a bargain under the hammer.

'December could also be a good time to buy as we have seen an increase in activity over the past few auctions.

'We sold over £100 million worth of property at our auctions in November, making it a record month for us, so we certainly see no signs of slowing down before Christmas at the moment.'

Is it too late to register for December auctions?

There is usually only four weeks between the publication of an auction catalog and the auction itself, so buyers never have to organize for a long time.

Unless they can arrange a viewing at the last minute, anyone wanting to bid on these December auctions may have to buy it without seeing the inside of the property first – which is a risk. But if that's what they want, it's still possible.

To bid online or in person, buyers typically must first register.

They will have to provide details about themselves, identification documents and details of the lawyer. This can be done in advance, or by arriving a little earlier in the day.

It is also recommended that potential buyers ask an attorney to review legal documentation before bidding at auction. Legal packages for each item will be available on the auctioneer's website.

Legal packages usually summarize the good and bad points of each individual lot within a short period of time.

Search queries are often included in the legal documents, but if not, a lawyer can request them before the auction.

Prudent buyers who are willing to pay for a surveyor before the auction can usually do so.

For those who need a mortgage to finance the purchase, auctioneer Strettons' advice is to make arrangements before bidding.

While it is possible to finance an auction purchase with a mortgage, not all banks offer this. Most buyers pay in cash and there are several restrictions to consider.

Auctioneers can recommend mortgage brokers or development finance specialists if necessary.

How do real estate auctions work?

The property is usually listed with different prices. The first is the target price, which is used as an indicative figure to show potential buyers whether or not this fits within their budget.

Bidding on the property can start with an amount lower than the target price and increase.

It may also have a reserve price, which usually refers to the minimum price at which the seller authorizes the auctioneer to sell.

The reserve price is not disclosed to bidders, but could be up to 10 percent higher than the target price. So keep that in mind when bidding.

On the day an offer is accepted, it becomes immediately binding. The buyer must complete a sales memorandum – usually on the day or within a few days – and also pay a 10 percent deposit.

They then usually have between two and six weeks to complete the sale.

Most auction houses allow buyers to bid online and by telephone.

Robin Howeson of Savills added: 'All our auctions are live streamed online via an accessible virtual auction room, creating a level playing field and allowing all bidders to bid in confidence.

'We offer various ways to bid: online, by telephone or by submitting a proxy bid in advance.

'Potential bidders must register online prior to the auction and viewings can be arranged before the day itself.'

One of the main benefits of buying at auctions is that they take place all in one day, meaning buyers and sellers can buy or sell quickly.

The majority of properties offered at auction tend to sell. For example, Strettons claims it has achieved an 85 per cent success rate at auctions in the last 12 months.

“If you buy at a December auction you'll have the keys in January, which is a great way to start the new year,” Howeson adds.

'The process also eliminates any chance of counter-offers, staring or long chains.

'The prices achieved depend on the property offered and the opportunities offered. There are always countless options in an auction catalog and it is a matter of buyers doing their homework and due diligence prior to the sale and deciding what price they are willing to pay,” he says. adds.