Buying at auction

[Chris Pearce]

Hello to all,

we are in the proccess of planing to buy a property at auction and repair and possible let or sale on. At the moment we have more questions than answers, such as:

1. Do we get a survey carried out on a property that we are intrested in before the auction or does the auction allow you to get this done afterwards?

Thanks for any usful answers.

[Melboy]

The vast majority of properties that end up at Auction are there for one reason and one reason only.........difficult to sell on the open market and 9 times out of ten they have a problem with them.

So to answer your question............Surveys are carried out prior to bidding.........and make sure you get a comprehensive one at that because the Law of The Auction House is totally different to the normal consumer buying and selling guarantee's.

Once that hammer comes down and you are the owner of the property that's it.....no if's, no but's, no changing your mind 'cos you thought the central heating boiler was working and it's not and you didn't realise it was built on top of a mineshaft which flooded every Winter and you didn't realise that the roof was in need of total replacement.

Forget these Telly programs where everybody lives in La La Land and make huge sums of money from Auction Property, what they don't show you are the people who get caught out and believe you me there are loads of those!

Mel.

[GPEL]

Good advice from Melboy and don't let the emotion of the event rule your head or you'll end up bidding far more than you budgeted.

[Independent Adviser]

Hello to all,

we are in the proccess of planing to buy a property at auction and repair and possible let or sale on. At the moment we have more questions than answers, such as:

1. Do we get a survey carried out on a property that we are intrested in before the auction or does the auction allow you to get this done afterwards?

Thanks for any usful answers.

Hi Chris

If you require borrowing the lender would require a basic survey to see if it values up ok(This survey does not give you any protection)

It would be a good idea if you could get your funds agreed with a suitable lender prior to the auction.

I have had clients who have come to see me after bidding. less time = mistakes

You have to put down 10% on the day and the remainder in 28 days

You would be wise to prepare the following items:

6 months bank statements

Proof of Income

Proof of ID (Passport or Driving Licence - Make sure it has your current address on it)

Proof of address dated within the last 3 months (Bank statement or utility bill)

Speak to the local agents and get some comparable evidence of rent for the type of property in that area

If you think you will be selling the property on to make a profit budget with the worst case in mind.

Pick a deal with no tie in.

It may be worth buying in joint names to make use of your capital gains.

Hope this is of some help ?

Best

Ken

[odecar]

Having not done the homework on an auction property and then realise its unmortgageable I learnt the hard way. Goodbye 8k. An expensive lesson thats not even writeoffable for tax but whats done is done.

Generally many auction properties come up for auction have previously been with local estate agents so Rightmove.co.uk can show who had it for sale and for what price.

Best idea was to go look at the property and speak to neighbours. On one occasions they warned me off as place had historically lots of problems, they weren't buying so had no vested interest and prop sold for 65% over auction price because 1 person in room kept pushing the bid.

I have attended a couple of auctions and find that many properties are going for way over normal market price so now I avoid.