Buying property at auction could help you find your ideal home and make a profit into the bargain. Many of the lots that go under the hammer have problems, so be prepared to do your research and get your hands dirty.
To start with, find out where the local auctions are – estate agents can help. Get hold of the auctioneers catalogues and make sure you go through them thoroughly. If there are properties you’re interested in, contact the auctioneer and arrange viewings. It’s probably a good idea to take a builder with you so that you can get an idea of what renovation work will cost; they could also help you spot any hidden problems.
Auction catalogues are generally published well in advance of the auction with guide prices often set low to entice buyers. You will need to contact us as soon as you find a property you wish to bid on because once the hammer falls the property is yours warts and all so you don’t want to find you have any unresolved legal issues. The solicitor acting for the seller should have placed with the auctioneer a “legal pack” for prospective buyers and their legal advisors to view to ensure there are no issues.
It will be important to act fast so that you have time to do your research before you go into the auction room. If you have any concerns, you can do land and property searches yourself. Also, check the prices of other similar properties in the area – how much have they sold for? What condition were they in? Work out what you think the property is really worth and what your maximum bid will be – it’s easy to get carried away once bidding starts – prices can go much higher than the guide price.
You can buy an auction property with a mortgage but you will need to do all the groundwork with the bank or building society prior to the auction and have a mortgage in principal so that you can meet the 28 day deadline.
On the day of the auction, you will need the means to pay a 10% non-refundable deposit and your personal identification. The remainder of the sale price will be payable within 28 days including any additional costs noted in the contract along with an auction administration fee. Please note – if you are the successful bidder you are legally obliged to complete on the sale.
Where we can help
Our team has many years’ experience in helping people to buy and sell property at auction and are on hand to advise throughout the whole process.
If you’re buying or selling property contact us for a free, no obligation conveyancing quote or a chat about your options.