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Buying at auction - tips and advice?

(2 Posts)
SoldToTheHighestBiddy Wed 29-Jun-11 20:51:24

Hello - all and any advice gratefully received!

We're just starting to think about buying a property and are considering looking at auctions. It's all a bit hypothetical at the moment (!) but might not be by next week when we've spoken to the bank and got ourselves sorted grin

I've been to auctions, but not property ones. We've just started looking on rightmove etc. and I've spotted something up for auction which looks ideal. Sooo...

Has anyone bought at auction? Any hints or tips?

Money - I know you have to have 10% of the purchase price ready plus auction admin fee- is that it? What happens with deeds and all the conveyancing stuff, does that still have to happen or is it just PING there you go!?

Banks - how do they value if it's an auction property, do they do a valuation and agree to mortgage that particular property in exactly the same way? (guess we will find all that out at the meeting tho).

And all the stuff I won't have thought of! This house looks lovely - it's a mid terrace, quite nicely presented, lovely area, most things have been done (newish kitchen, good bathroom etc) but it's not done up for sale iyswim - it's just a normal quite lovely little house. So WHY is it being auctioned? The only thing I can think of is that the owners need a quick sale. The guide price is about 25-35% below what the one nextdoor sold for in 2006 (and looking at other prices in the village the guide price looks pretty low). But what other dastardly reasons might they have to auction it? The only thing I can think of apart from structural defects (unlikely in terrace?) is neighbour problems and I was wondering if you had to declare them in the same way with an auctioned property.

So- all comments very welcome. Have you bought at auction? Are guide prices absolutely meaningless? Is this a good idea? Help... smile

GnomeDePlume Wed 29-Jun-11 23:50:24

We havent bought at auction yet but are keen viewers of 'Homes under the hammer'. We havent gone to auction yet because that is a highly unusual way of selling in our area. A few things we have seen:

- when the hammer goes down you have exchanged contracts, you normally have about 2-4 weeks to complete - check this! If you dont complete you lose your deposit.
- read the legal pack, be absolutely certain of what you are buying.
- property often goes to auction because it wont sell in a normal market. Reasons for this are legion:
- non standard construction
- structural problems
- access problems
- ownership issues (eg where there another party has rights of access)

All of the above impact on the ability to get a mortgage.

Set a limit and stick to it ABSOLUTELY
DONT buy something else because you missed out on the property you wanted
Get all the information on the property, go and see it, get a survey if you can

Good luck!

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