Purchasing commercial property through auction is a well-established route to market for many businesses and investors, often favoured for its speed and potential for investments.

Recent figures highlight the continued appetite, as well as new buyer behaviours - sales in the first nine months of last year reached £667.6 million, surpassing 2024’s record (£655.9m). Some commercial agents report that online auctions now represent 35% of their commercial sales, rising from 13% in their previous 12 months.

However, in stark contrast to an episode of ‘Homes Under the Hammer’, auctions are not for the faint-hearted or the under prepared, and once the hammer is down you are contractually liable to purchase the property. This commitment may not seem like a big deal in the moment but compared to traditional sales there are some important differences that every buyer should be aware of.

Common pitfalls
Firstly, auction properties can be subject to less scrutiny and fewer enquiries. While a legal pack is provided these can be very basic or even incomplete. The responsibility falls with the buyer to identify if there is anything missing - which can often be complex and take time.

The compressed timescales also mean buyers often have limited opportunity to fully investigate a property and arrange a survey for the property before making a bid.

Finally, the competitive nature of auctions can encourage quick decision-making rather than careful planning. Bidding environments can create added pressure to act, sometimes leading buyers to exceed their budget or proceeding without fully understanding the risks or issues.