Home Buying Advice
Property Auctions
Property Auctions: Buying a first home at an auction can often lead to a good buy - 90 per cent of the cheap property sold in the UK goes via property auction. Click on the link at the end of this section to find some real bargains.
How to bid for property at an auction is important. As a little bt of property auction advice, when buying property at auction, the buying process is obviously completely different from the 'normal' one as when your property bid in an auction room is accepted, you are legally committed to the purchase. In effect, that final bid acceptance becomes the 'exchange of contracts' and you cannot pull out of the completion. It also, of course, means you cannot be gazumped, nor can the vendor pull out at the last minute.
You must have the finances in place to go ahead with the completion (purchase) in the timescale required, usually 28 days. You must also have any deposit ready on the day of the sale - this might typically be 10 per cent of the purchase price.
You will need to seek mortgage advice form a mortgage advisor. You will need to decide your 'walk away' or ceiling price based on what you think the property is worth to you and what you can afford. Do not go over this amount, no matter how much you are tempted. You must have the finances in place for 'completion'.
You can sign up for a service telling you about properties for sale at auction. Alternatively enquire with estate agents, contact local auctioneers or watch the local press. You should visit an auction without bidding first, to get a feel for how the proceedings work, and to ask the auctioneer any questions you might have.
Before you bid, make sure you have carried out all the relevant research. Have a survey done, ask your solicitor to check title deeds and carry out local searches. Make sure you know if there are any special conditions of sale, and view the auction property thoroughly before placing a bid - when you buy auction property you have to see the state of the property before bidding.
To have your mortgage in place, seek mortgage advice.