Bought property at auction? Please tell me your experience....

[Paddlechick666]

Am desperately hunting around looking at all my property buying options - there aren't many!

Anyways, there are some properties that could be in price range that are up for auction but I've never done anything like this before and it looks very very intimidating.

How does it all work? Can you get a mortgage for an auction property?

Help!

TIA

bump

PC, no real experience myself, but an ex colleague of DH did this a few years ago. I believe you need to have the finances in place before going to auction. A lot of banks/building societies are reluctant to mortgage on auction properties due to state of repair, so i would say a full structural survey upfront is a must, which is expensive. I believe as well that as the hammer falls you have entered into a contract, which means that if the finances fall through unless you have an understanding vendor, you can be up the proverbial. I think they usually get a month to pay? I have always wanted to buy at auction but given our finances not an option at the moment.
Anyway, this is from a few years ago and 3rd hand, so i am sure someone else will be along soon! Good luck with whatever you decide to do.

I think it depends if there's a kitchen and/or bathroom? Read this somewhere but vcan't locate it.

Paddlechick, houses tend to go to auction because there is some reason why they can't be sold in the usual way via normal estate agent. If comparable houses with ordinary estate agents are outside your budget but the auction ones are within your price range, there will undoubtedly be a reason for that. Sometimes auction properties will not have vacant possession (sitting tenants) or they may be unmortgageable because of poor structural condition, or there may be other legal complications.

That's not to say it can't be done, but you need to be very clued up and aware before you pile in. Look at some auction websites, and go to the viewing sessions for houses that seem suitable. Chances are you will immediately see what the problems are (railway line three feet away from the bedroom, motorway opposite, huge cracks in walls, place honks of damp. You get the picture). You can apply for legal packs for houses you're particularly interested in, so you can see if there are any restrictive clauses or other complications. Then try attending a few likely auctions without bidding just to get a feel for what goes on and what the prices are. You have to put down 10% deposit immediately the hammer goes down, and complete within two weeks, so yes you have to have the money sorted beforehand, and you should have a structural survey done too, with the attendant risk of repeatedly paying for surveys for houses that you get outbid on.

IME (and I've looked into it quite a bit over the past few months) there aren't many actual bargains out there (London) atm, but there are loads of people paying hugely over the odds for horrid and problematic houses.

So go and check it out, but be very, very wary. It's a shark pond out there.

thanks ladies, appreciate the advice.

am also in london, hence becoming somewhat desperate and researching all the options.

think the auction option is probably too risky and intimidating for me i'm afraid.