A property overlooked at auction

Our January 2026 update described a property purchased after it failed to sell at auction. It had 4 bedrooms, 2 bathrooms, a large plot and a reported floor area of 1,936 sq ft. The purchase price was reported as under £100,000.

By the time of the update, non repayable funding had been approved for works intended to improve the EPC rating to C. The YouTube walkthrough which you can view via the link below showed wall insulation being installed, with upgrades also taking place upstairs.

The funding mattered to this particular project because it reduced the owner’s renovation costs. The intended EPC C rating was a target for the works.

Watch the original property walkthrough

Why a good property might remain unsold

Unsold auction property is not a single category. A seller’s reserve may exceed the bids received. A lot may have attracted limited interest, come with unfamiliar terms or require work that buyers found difficult to price. It may also have legal issues which buyers retreat from, but may be very easy to resolve.

There can also be substantial defects. Ask why the property did not sell, inspect it and review the evidence yourself. A quiet auction does not tell you the full story.

Our approach to property auctions includes opportunities prior, on the day and afterwards. Each route needs the same disciplined valuation.

How a £55,000 opening offer led to a £60,000 purchase

In May 2025, we recorded a mentee’s purchase of a tenanted two bedroom freehold house after it remained unsold. We had investigated the opportunity prior to auction, then waited to see whether the seller’s position changed. An opening offer of £55,000 led to an agreed price of £60,000, below the reserve.

That result followed several earlier opportunities where the mentee kept to her limit and let the property go. The research was already in place when the negotiation opened. We could assess the seller’s response against a price we had worked out beforehand.

At the time, we assessed annual market rent at £9,000. A separate two bedroom terrace needing work sold during the auction for £114,000, with the same estimated market rent. The worked rental yield comparison shows the effect of those purchase prices and explains what the headline percentages exclude.

Keep a record of the offer, counteroffer, conditions and response deadline. A low opening offer is useful only when the property appraisal, funding and legal position support the eventual agreement.

How to buy unsold auction property

1. Confirm that it is still available. Speak to the auctioneer, obtain the latest particulars and ask about the seller’s present instructions.
2. Investigate the reason it failed to sell. View the property, ask questions and check the legal pack and any later amendments.
3. Set a maximum offer from the evidence. Use relevant completed sales, rental evidence and estimates for the work your strategy requires.
4. Count the whole purchase cost. Include auction charges, taxes, professional fees, finance, insurance, refurbishment and a contingency.
5. Prepare your funding and legal review. Ask your solicitor and finance adviser whether the proposed contract and completion timetable can be met.
6. Negotiate and document the terms. Ask the auctioneer how the sale will proceed and when you become legally committed. Have agreed changes included in the contract.

The RICS property auctions consumer guide explains why the particulars, legal pack and conditions of sale deserve careful examination. Our guide to buying property at auction connects that preparation to your investment plan.

Assess energy improvements and grants separately

The original case benefited from approved funding. Treat funding as a separate question for your own property: establish eligibility, available money, the work covered and any contribution required from you.

For current information in England, GOV.UK explains the Warm Homes: Local Grant. Eligibility depends on the property and household circumstances, local funding must be available, and landlords may have to contribute. This is an example of a current scheme to investigate, rather than an identification of the scheme used in the case study.

Assess whether the purchase still works if a grant is unavailable or delayed. Obtain estimates for the improvements needed and check the EPC position independently before relying on a proposed upgrade.

Finding unsold auction properties in Liverpool

Check the unsold lists of local and national auction houses, then confirm availability directly. A catalogue status can change quickly when negotiations continue after the sale.

For help evaluating opportunities across Liverpool, Merseyside and Wirral, visit Property Sourcing Liverpool. We consider local values, rental demand, condition and likely costs alongside the seller’s position.

You can also explore our published property sourcing track record, our approach to property investment in Liverpool and our property auction courses.