I am thinking of buying a house at auction in the UK - any advice?
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Go to some different auctions before your planned purchase to get a feel for the atmosphere, how auctioneers work and the strategies employed by buyers. Make a note of how much above the guide price properties are actually being sold for. Stand at the back of the room to get a good view of bidders.
The property auction pack should be available a couple of weeks prior to auction. This will give you title and search info. If you're not clear about anything get it checked by a solicitor. Don't rely on the auctioneer to advise you.
Once you have found the property of your choice you need to make sure you have funds to buy it. If you are successful at the auction you will be required to put down 10% of the price and to complete the purchase within 28 days. You will therefore need to arrange a mortgage and its better to get the survey done before the auction although you will be spending without guarantee of buying.
Auction rooms can charge a Buyers Premium usually of around £200-250 plus VAT payable to the auctioneer not the seller.
If you go for a PRC (precast reinforced concrete) house then you will have to remove, and replace with bricks, the concrete outer walls of the house which can be quite expensive. £30'000 upwards. Otherwise if and when you want to sell the property on it will be difficult for any potential buyers to get a mortgage.
Set a Target before you go and DO NOT go over it. Don't even risk it!! If its over your target then walk away with your head heald high knowing that it wasnt the right one for you.
went to auction and lost about a month ago!! lost it to a developer as they are everywhere and will go to an austion without even looking at a place!! Have now got a great flat instead and the auction house is just a memory!
Good Luck!!
Yes, go to an auction first, see how it works.
Always read the legal pack of the house you want to bid for.
Don't forget to go and view it, or you may be in for a nasty surprise.
Be careful what you are taking on, get advice first.
All good answers here. Auctions can be very frustrating places it pays to be a bit clinical and not let your heart get in the way, as the dissapointment at being outbid will be painful. Definitely attend a few auctions and study the process. If your going to bid on a property dont start the bidding unless the room is deathly silent, let it start and wait until it is beginning to slow and see where the price is, if its going your way wait a little longer then come in with smaller bids say £500 if the auctioneer will allow it ,then edge towards your limit until your rival bows out. Hopefully you will succeed
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