Auction property

[TulipsfromAmsterdam]

Has anyone bought a house that was up for auction through the estate agent listing. A house we were interested in has become available but selling by auction this time as seller wants a quick sale. We would hope to not have to go to auction and buy in the traditional way but not sure if this is possible till we speak to agent next week.

I’ve not, but seriously considered an auction property a couple years ago.
Check auctioneer costs first!

Be very careful that there’s nothing untoward about it - usually you pay a circa 10% deposit on the day, with a couple weeks to pay the balance. If you discover issues with (eg) planning permission, building regs, covenants, servitude’s or whatever then you’ll loose your deposit. Ditto for being certain you’ll get mortgage in time.

The vendors could be aware of why previous sale fell through and desperately trying to get rid to someone who doesn’t have time / skill / inclination to (eg) go through the legal pack properly.

Or maybe the vendors need the proceeds quickly and it’ll be a good solid purchase.

Thanks for reply. I am very unsure of auction route and hoping we may come to an agreement through estate agent. Will see what they say after viewing. Thanks again.

I thought most of the properties on auction are not mortgageable so you need to be a cash buyer. I may be wrong but you should check.

Is it the modern method of auction, or a genuine auction?

I sold at auction and the buyer was getting a mortgage - he couldn't pay when the hammer fell, I had to wait the weekend for his 'underwriters' to approve it.

I have. We are living in it. We needed a house really fast and from fall of the hammer to keys in the door it was 27 days.

@TulipsfromAmsterdam not sure I understand your question? Do you mean you’d like the vendor to sell you the property outside of the auction process? Is it a standard auction? You can ask the EA to approach the vendor to see if you can agree a price before the auction so it is withdrawn from sale but you will likely have to use the sale contract and terms from the auction pack and complete in the same timeframe. It is in the auction process for a reason (guaranteed quick sale/legal issues/repossession/possibly unmortagable) and the EA may have the listing purely to facilitate viewings. There are costs you may have to bear as the purchaser which you normally don’t in a non-auction sale (sellers legal fees for example) and these are normally detailed in the pack so read everything carefully and ask a solicitor to check the details before you bid.

Yes a few times. Unless you can match the speed of an auction transaction you may get turned down, but some auction listings are sold before.
There is always a legal pack available before the auction and you must read it carefully. You may be responsible for the sellers costs for example, or they may want completion within a shorter than the usual 28 days from sale.
You should of course view the property and do any checks - if you have a builder friend take them too. There are usually a couple set open days so it is unlikely you can ask for a private viewing.
Get your finances in order. You have to show you can afford it before the auction house will let you register.
Some auction properties are very run down but not all. But it's up to you to do due diligence.

I know of 2 close relatives’ properties that were sold at auction purely to guarantee a quick sale as the owners were in residential care. They’re not necessarily unmortgagable.