There are a number of advantages to buying property at an auction, which include taking away the lengthy process which is normally associated with property purchases, but there are things you need to consider too.
You should get yourself an auction catalogue so you can review all of the houses on offer at the auction. If you do see a property you like, you should arrange a viewing as soon as possible. By viewing the property you will have all of the facts before you decide to bid on it at the auction, and seeing inside will help you to know how much you want to bid.
Once you have decided that you are interested in purchasing the property, you need to make sure that you have carried out all of the local searches you would normally do when purchasing a house. These will tell you if the property is involved in any disputes, whether there has been any mining, subsidence or flooding in the area and whether there are any potential developments being built or planned nearby.
You should also consider if you want to have a survey completed on the property. You are making a huge investment so you should ensure that you are aware of all of the implications before you enter into it. Again, you should have your survey completed prior to the auction because as soon as you bid at the auction and you win, you immediately become the legal owner of the property.
In order to complete the purchase you will need two forms of identification, your 10% deposit, bank details and a cheque book too. The auction house may require you to register with them in order to make a purchase, and you should also check to make sure the property has not been sold or withdrawn prior to the auction.
When the auction is due to start you should be in a position where it is easy for the auctioneer to see you and when you make a bid you should do this as clearly as possible, by raising your hand or putting your catalogue in the air. As each person bids, the auctioneer will continue to raise the price of the property.
Once the bidding is at an end, the auctioneer will give everyone a last opportunity to make a bid. If no one else comes in with a bid, the person who made the last bid now owns the property, providing the reserve has been met.
If the reserve has not been meet you can still leave your details with the auction house, because the vendor may decide to sell after all and accept a bid at a later date.
Once you are the legal owner of the property you will need to now pay your 10% deposit and arrange a mortgage for the other 90% within 20 days of the auction or pay the outstanding balance with 28 days or you will lose your deposit and the property will be put back on the market.
If you would like any more information about this article or you have any property questions, please call us on 0800 142 2775 or reply to this email and we will be delighted to help you (there is no charge for initial telephone discussions).