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buying at auction for rental/resale


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To be honest.... no I havn't. I prefer to buy my properties by not going to the Auctions because Auction prices at the moment are achieving too much money for the seller. A lot of Auction properties are no hopers anyway......that's why they are there.....difficult to shift on the open market.....unless there is a good reason for the property to go to Auction of course.

Auction Selling rules are very loose and you really have to know what your about when buying otherwise you could end up with a real pile of bricks. Plent of people have found that out to their cost. :angry:

Nope...... I 'll stick to my tried and tested buying method thankyou. :o

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Make sure property is mortgagable as a buy to let (eg, must have a running hot water supply, must have kitchen, etc - sounds daft, but without these it is not mortgagable).

Ensure you have sufficient funds to complete if mortgage fails.

Try to establish personal contact with the vendor (eg if they are doing the viewings). For me this has twice this has saved an auction deal from being lost (and deposit lost) - I was able to negotiate a longer completion time (with no penalties except interest).

Check the legal contracts BEFORE the sale - get them reviewed by your solicitor if you are serious about buying a property.

On the day you sign contracts (normally the day of the auction) arrange:

1. Insurance

2. Damp proof survey

3. Gas Safety Check if the boiler looks suspect (get quotes for remedial work from same person)

4. Electrical inspection if the electrics look dated (get quotes for remedial work from same person)

5. Apply for a mortgage if you havn't already done so and get the survey instructed immediately.

6. Instruct your solicitor on the same day. Some require a payment on account - give them a cheque on the day to speed things up.

7. For extra insurance, if the property looks slightly suspect (eg slight structural movement, etc) get a structural engineers report.

Points 2, 3 and 4 are a backup plan in case the survey shows signs of damp etc. With this ready to be given to the mortgage company you would have saved yourselves a week or so of waiting for reports to come in.

Some people (especially TV pundits) say you must always have funding in place. However, unless you have a short notice lending arrangement with a bank this is simply not possible - you never know if you are going to buy a particular property. However you will need a good broker on board and possibly funds to complete for cash if needed.

Good luck.

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