Nothing beats the excitement of standing in an auction house, bidding on your dream home at a property auction. Whatever your reason for buying at auction, it’s not for the faint-hearted, but can be a great way to get a property you know you can afford.
First things first, preparation is key.
Take a look
It goes without saying, make sure you have a good look around and get a feel for the property.
Agents often have open house days, which also gives you a chance to weigh up the competition and potential interest. If you can’t make the open day, you can also ask to arrange another time to have a look around.
It’s important to know exactly what you’re letting yourself in for. So that you’re in possession of all the facts, arrange for a surveyor to undertake a structural survey. A basic survey starts at £250 and gives you a good idea of what you’re letting yourself in for any issues you will need to consider before you purchase.
Make sure you’ve got the money available. You’ll need to pay 10% of the auction price on the day and the remaining balance 28 days later. There is no deviation from this – it is set in stone.
Contrary to popular belief, you can buy at auction using a mortgage. You’ll need to get an agreement in principle in place, before you pick up your bidding card and again, you’ll need the 10% deposit available to pay on the day. It is a riskier route, so you’ll need to do your homework and be confident you will get the money in time.
Make sure you’ve got a solicitor ready to hit the ground running. Once the hammer falls, your bid is legally binding and on average, you’ll usually have around 28 days to complete the sale.
Each property that’s up for auction comes with a legal pack for your conveyancer to go through beforehand. The pack includes the deeds, special conditions of sales, leases, searches and replies to potential buyers’ enquiries.
If you’re borrowing funds, you must appoint a solicitor to act on your behalf and liaise with the bank.
Once you’ve decided you’re all ready to join in the bidding, you’ll need to register. If you’re successful, you’ll need two pieces of ID for this – usually a driving licence and a utility bill.
It’s easy to get taken over with the excitement of the auction when you’re in the throes of the bidding. Make sure you set yourself a limit and most importantly don’t go over it.
Hold your nerve and fingers crossed the gavel will be dropping on your bid!
Feeling tempted? Have a look at what we’ve got coming up for auction here……
If you’d like to find out more, download our Comprehensive Guide to Buying At Auction.