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You will find property auctions advertised in your local and national press. Buying a house at auction could yield a real bargain but many of the properties that come up for auction are in such poor condition that you’ll need to spend tens of thousands of pounds to bring them up to habitable standard.
That’s not to say that bargain-hunters won’t win by buying a home at auction. It’s possible, but only if you find out as much as you can about the property before making your bid. Auctioneers will be able to give you details of properties which are coming up for auction. They will also be able to give you a guide price – how much they think the property will sell for.Attending an auction before you’re ready to bid is a good idea - you’ll get an idea of how things work and a feel for the kind of properties which are offered. Some people just aren’t prepared for buying at auction and getting the property you want at the price you want it is a skill in itself. But don’t worry about buying the wrong property by accident - sneezing, winking or scratching your head won’t mean that you’ve inadvertently made a bid. If your bid is accepted for a property it will be assumed that you are happy with its condition. You will have to put down 10 per cent of the price of the property as a deposit there and then and, if you subsequently discover faults or problems, you’ll have no recourse. Effectively the properties are sold as seen. For this reason there are steps you need to take before making your bid - seeing a property obviously isn’t enough. Before bidding you should get a full structural survey carried out and employ a solicitor to undertake all the necessary searches on any property you’re interested in. If you are not completely happy with the condition of the property, or are concerned about any of the legal aspects, think before making a bid. Of course you also need to have the finance in place before going to auction, giving you the added advantage of knowing exactly what your bidding limits are. But you don’t have to leave it to chance. Spotting a property early could mean that you get in first and snap up a bargain before the auction has even been held. You can make an offer beforehand. If you contact the auctioneers, they will pass your offer on to the vendor and if it is a reasonable offer, it may be accepted. Another benefit of buying at auction is that you can’t be gazumped. Once your bid has been accepted, the property is yours and it’s too late for someone else to come in with a higher bid. You put down your 10 per cent deposit at the auction, and then, only 28 days after buying, you should be able to move in. |
