An auction is very different from a normal (private treaty) sale. When the hammer falls, you have bought the property: you immediately pay the deposit (usually around 10%) and sign the legally binding contract for sale, with no cooling-off period and no "subject to survey or finance". So everything, your mortgage approval, your survey and your solicitor's review of the legal pack, must be done before you raise your hand.
Most Irish homes sell by private treaty (offers and bidding through an agent, then a sale-agreed period). Auctions are a smaller slice of the market, often used for probate sales, investment lots or where a transparent public sale suits the seller. The rules are stricter, and the risk sits with the buyer.
How an auction works
- Reserve price. The seller sets a reserve, the minimum they will accept. If bidding does not reach it, the property is withdrawn. The seller can also withdraw at any point during the auction, even after the reserve is met.
- The auction pack. The auctioneer publishes the terms and conditions and a legal pack before the auction date. Get it and have your solicitor review the title and conditions in advance.
- The bidding. Held in a room or online; the highest bid above the reserve wins.
- Fall of the hammer. The winning bidder immediately pays the deposit and signs the contract for sale. That contract is binding straight away, and if you pull out afterwards you can lose your deposit.
Why it is binding, and what that means for you
In a private-treaty sale, "sale agreed" is not binding, you and the seller have weeks before contracts to do the survey, finalise the mortgage and review the title. An auction collapses all of that into the moment of the hammer. There is no later stage to back out, renegotiate, or make the purchase conditional. You are buying as-is.
Prepare before you bid (this is everything)
Because you cannot make the bid conditional, do the work first:
- Have your mortgage sorted. You cannot bid "subject to finance", so you need firm approval and certainty you can complete. Many auction buyers are cash buyers for this reason.
- Get the survey done beforehand. Pay for a structural survey before the auction, not after, so you know what you are bidding on.
- Have your solicitor review the legal pack. Title, planning, and any conditions in the auction T&Cs should be checked in advance.
- Set your absolute maximum and stick to it. Auction rooms are designed to push you higher. Decide your ceiling (including the deposit you must pay on the day) and do not chase past it.
On the day and after
Win the bid, pay the deposit (typically 10%) and sign the contract immediately. Completion then follows in the usual few weeks, when the balance is paid and ownership transfers, the same closing mechanics as any sale.
Auctions can be a good route to a property, but only if you are fully prepared. If you are not certain of your finance or you have not had the place checked, a private-treaty purchase, with its survey and mortgage conditions, is far safer. This guide is general information, not legal advice; confirm the specific auction's terms with the auctioneer and your solicitor.
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