Anyone bought a house at auction?

[IggyPoppers]

There's a house we had our eye on for a while but just hadn't viewed yet. It has now been taken off the market and will go at auction. Has anyone bought a house this way?

I've got friends that bought their house at auction. They got a bargain, although had problems when it came to completing and actually getting the keys. The previous owner also literally just walked out the door leaving all the shite he didn't want, so a week was spent fumigating/getting rid of stuff. That said they spent many profitable hours ebaying stuff.

Don't you need to have the cash to hand? Ie you can't get a mortgage on an auction property to pay the auction fees? Many, many years of watching Homes Under the Hammer have taught me to always view the property inside and outside first! And get a builder/surveyor friend if poss, they're very helpful to take with you when viewing.

Do you need a mortgage? A lot of properties end up going to auction because they are not mortgageable for various reasons. Speak to the auctioneers to find out their t and c's for purchasing.
Yes, I love homes under the hammer. Always read the seller's pack and let your solicitor have a look at it too if you don't understand anything. Get the house surveyed as well. (I have gleaned this from the programme anyway) It always amazes me how some people don't even look inside the houses they are buying on that programme.

We bought one. You will need cash or a loan rather than a mortgage although you may be able to get a mortgage reasonably fast after buying it depending on the condition of the property

Some properties are sold at auction for a quick sale. A few people in my family have done this.

Have the sale pack looked at by a conveyancer before the auction. They'll charge you but the hammer falling is exchange of contracts so you won't be able to ask any questions afterwards or get out of the contract without loosing your deposit.

you can get a mortgage on auction property but you need to have ducks in a row need survey done before auction and have your solicitor read the legal pack as you normally need to pay 10% when hammer falls and balance in 21-28 days ( no extensions) otherwise you lose your deposit
to be mortgageable a property generally needs to be of standard construction and needs a functioning bathroom ( toilet) and kitchen ( sink)
mortgage companies care about getting their money back so long as your mortgage is well below value of property
often unusual properties go to auction when it is difficult to gauge interest, we sold my grandfather's house ( solid but very old fashioned) at auction it went for 40K over guide and 35k over verbal offer the week before

We have. You need the deposit amount to pay on the day, then, since the timescale to completion is so short, you really need to have the money ready to pay the remainder. Don't rely on getting a mortgage in time, you probably won't. Also, don't rely on getting a mortgage soon after, if you need to financially. Many properties going for auction are not mortgageable - mortgage companies require the property to be liveable in which means a decent kitchen/bathroom, no major problems with roof, foundations, windows etc. You may get a renovation mortgage, but again this isn't without its problems.

Unless you have most the money in cash it can be very hard because completion is usually 4 weeks. NatWest were willing to loan to us up to 50% of the value as a bridging loan, then process the proper mortgage after, but it was because of the sizeable deposit and 10 years ago!

mortgageable ( subject to above caveats about bathroom kitchen) depends on amount you want to borrow and the lender if you only want 50 % they will be more flexible about state of house than if 90%
if you only want 50% they won't care if it needs rewiring central heating new windows re pointing etc livable is a very low standard basically running water into a sink with connected waste and 1 cupboard for a kitchen and flushing toilet with sink for bathroom and weathertight ie has windows doors and a intact roof a few slipped tiles./slates won't matter

We would need a mortgage. We are already approved for the amount we need. But I've just read the legal pack and the render on the building is failing and letting in damp. There are 6 flats all sharing the freehold and they haven't set up a maintenance plan nor a fund....that's a no right? Even though I really like it?

Define no.

I wouldn't touch that particular one based on what you've said.

I've been attending auctions for years and I'd say its very hard to get a bargain these days, in fact in some cases I've seen properties go for more at auction than they were asking for them on the open market thanks to the large numbers of giddy and excitable people bidding on them.

Nope. Try again on a different property.
I inherited a flat and strata title fees were $6400.00 every 3 months for a year once asbestos was found in the roof, it can work out to be very expensive

Paying for the work doesn't so much bother me as much as the lack of framework between the owners or any play to deal with maintenance. We've never owned a flat. Is it common to not have a sink fund for repairs and and a schedule of maintenance?

No. Sounds like a money pit. The 'lack of framework' is probably why it's being sold at auction. Run away.

Also don't forget that whatever you pay for the flat at Auction, (depending on the price of the property), you may have to pay stamp duty on top of the price paid.