Has anyone bought a property at an auction?

[Chrysanthamum]

I was wondering what property auctions are like and if anyone has got a good deal for a home at one.

We bought a house 3 years ago at auction.The main thing you must remember is never bid over your limit!
Did you want to know about the specifics (time limits, deposits etc) or just general stuff ?

Thanks for that Ihbfrugal, I've read a bit about deposits and the time limits but wondered if you have to attend a lot of auctions to get an idea of how much to bid what's out there etc. Were you pleased with your home? Did you target a certain area or type of house and then bide your time?

Hi Chrysanthamum

We knew which type of house/area we wanted to buy in and kept an eye out for sale/auction boards. Our local paper also has an auction listing every week - mainly antiques etc but also when property auctions are coming up. Usually local estate agents who specialise in auctions have upcoming sales on their websites.

We bought a house that needed work but was priced to reflect that. We basically worked out what needed spending to bring it up to standard plus 10% contingency (it needed d/glazing, new kitchen, damp proofing course, and general cosmetic work - and we had block paved parking)and then set a limit .

We bought at the first auction we went to.( I had spent a lot of time watching Homes Under the Hammer whilst on maternity leave!)

I would certainly go to a couple of auctions just to get a feel of prices (as it is a different market to when we bought at auction).

If you have a specific type of house in a set area that you want to move to, you will have already checked actual sales - so an estimated auction price will give you a starting point - it's then up to you !

My mum's friend bought a house at auction a month ago - she had all the finance in place just in case - but she had expected that a lot of people would be bidding. Not the case and she got it at a couple of grand over the reserve. I know this is because people are very nervous at this moment in time- and I don't know what the market is like in your area stagnant/static/prices still falling?

Hope this helps

We bought at auction a couple of years ago. I spent around six months studying auction catalogues then checking the websites after the auction to see what the houses had sold for.

I then went to one auction to get a feel for it before going for it!

My tips would be:

• allow plenty of contingency in the budget if the property needs work
• make sure you've budgeted plenty for skips and waste disposal, plus more than you think for the garden
• get your finances sorted before the auction so you don't have a mad panic and risk your deposit
• be aware that the reserve price may be higher than the guide
• check and double check what you need to take with you (identification documents, chequebook for example)
• on the day, make sure you stand at the back so you can see what's going on and who else is bidding
• if the house you're after doesn't reach the reserve, talk to the auction house afterwards and see if you can reach a deal
• most importantly, don't get carried away

We were lucky in that we were after the very last lot so most people had gone home and we got it for £5k over the lower end of the guide.