Has anybody bought a house at auction?

[Greenfairydust]

So, I was just about to offer on a property but another agent called me to say they have a house on the same street I am looking at.

The house is cheaper than the one I was considering and in a decent condition but the issue is that it is being sold at auction.

Has anyone bought a property at auction? what are the pitfalls?

I am a bit nervous about the process and of course there is no guarantee that the house will go for a reasonable price, although the agent said they had not had much interest so far from viewers so far.

There’s a show on iPlayer called accidental renovators. They bid on the wrong property, 3 or 4 years down the line they are probably delighted as the house is amazing, or will be, but at the time… unless it’s a contrived back story.

You normally have to exchange in 28 days for an auction property (not always though) so if you need a mortgage it may rule you straight out anyway. You will also have auctioneers fees to pay and you need to pay the deposit plus fees on the day of the auction.

We did. Had to pay 10% immediately and then we done the mortgage application etc. We actually went in with a set amount before the live auction and it was accepted. Was offers over 200k starting, we offered 180k which was accepted.

You're Supposed to Complete within 28 days as many are cash buyers but they were fine with us, all done in 6 weeks.

Get a solicitor to look at the auction pack before the auction. It’s worth the fee.

This, my sis bought her house at auction without having title deeds reviewed before hand, had to get local solr down ASAP to review them....

House is amazing, no problems, was a great buy.

I bought my house at auction, so much more straightforward than selling . When I sold , in 2022 in April, the solicitors took until August to do the paperwork. There were no complications, just took their time. The auction house was done and dusted within the month. Most of it is done before the house is in the auction so it’s pretty straightforward.
All the other stuff you have to do is the same, mortgage arranged, survey done and builders round for quotes. I’d defo do it again.

@Greenfairydust watch out for ‘modern’ auction which could be minimum of £5k non-refundable fee on top of the purchase price.
They list the house generally about 10% less than the reserve price.
eg. Listed at 200k, minimum they would accept is 220 + you pay min 5k or worse plus a %

I plan to sell my property by auction soon. My friend sold hers a couple of years ago that way.

Buyers usually have to put down a deposit to bid. This is non refundable if the winning buyer decides to pull out, so you must be able to proceed if you bid. There is no quibbling or trying to change bids. And it usually has to complete within a month. No game playing or gazumping. So technically should be an easier sale.

We've literally just brought our forever home at auction at Christmas.

You can ask for a clause to be put in which would allow for you to have the deposit fee returned should your house sale fall through providing the sellers agree to it, but that would be the only reason you would get that fee back, not if you just chose to pull out.

We had 56 days to complete, there was a slight issue with our buyers funds which delayed us til 60 days but that wasn't a problem as long as we communicated well with everyone involved.

We went in with a set maximum and it was the most stressful hour of my life! You can't get sniped at the last minute via modern method, from the last bid the time is extended by 2 minutes no matter what to give time for a return bid.

I'm happy to answer any questions you might have if you want from our experience?

OK some positive feedback then.

I actually saw the house today and it is not for me.

But I won't rule out auctions if another property comes up as it seems some people have had positive experience.

Yes, I would need a small mortgage (I have an agreement in principle) and I was a bit nervous as to whether everything could be done within the timescale, also I saw the fees which again I did not like the look of.

@Greenfairydust I’m guessing it’s this one?
www.rightmove.co.uk/properties/131967302#/?channel=RES_BUY

Starting bid is 275k, they most likely want 300.
Fee is 4.2% or £11.5k at 275, or £12.5k at 300.

Plus a £300 buyer information pack!

@C4tastrophe

Yes I was looking at this one and another on Mill Road.

It all makes me nervous though so probably not my first choice to go for an auction

Why not go along and watch the auction?

@Honeyroar those are just online auctions I believe.

@Greenfairydust

i lost track of your ABCD thread. I'm sorry you haven't found the right place yet.

I bought my place at auction. I'd actually offered asking price when it was a regular listing, but they turned it down.

I got it at Auction for less. It initially looked like I'd get it for even less, but someone else started bidding & pushed the price up. For various reasons I think they weren't genuine buyers, but just there to bump the price up. I'll never know though.

it was fun doing it in the Auction Rooms. The Adrenalin gets you through, I'm not sure about online 😂and it was 13 years ago now, so not this 'modern auction' way.

good luck with finding a house!.

Funny , I was just talking to someone about an auction property being “bid up”. The house sold then three months later the auction house/estate agent approached my friend asking if she wanted it because the sale “fell through”. They wanted her to pay the amount it had sold for, but she refused.