Enter the purchase price amount, without commas (e.g. 120000) then hit SUBMIT.

Auction Properties - Buying a Property at Auction

An Auction is where a property is purchased or sold at an auction house.  Bids are placed, once the highest bid is accepted and the gavel (hammer) goes down contracts are exchanged.
 
When buying at auction you must be carefully as if your bid is accepted and the gavel does go down then there is no way of going back, contacts have exchanged at this point, you are legally bound to pay a 10% deposit with the balance to be paid on completion which depending on the contract is usually 21 days after the Auction.  Therefore in order that you can make a fully informed decision and be able to commit to your bid it is always advisable that you consider the following before the auction:

Organise your finances:
When considering to purchase an auction property you must first consider if you have the necessary finances to pay the deposit, balance to complete, legal fees etc.

It is important that if you need a mortgage to finance your purchase, ensure that the mortgage lender has provided you with a formal offer before the auction.  Ensure that you organise this as early as possible as your mortgage lender will want to have the property valued before issuing the formal offer.

Make a full inspection of the property:
Before an auction it is advisable that you make a full inspection of the property.  Should you have any concerns it is advisable that you should instruct the services of an independent surveyor.

Remember that the property is sold as seen and no warranties will be given to you by the seller.

Take legal advice and check the legal documents:
Before legally binding yourself at auction you should instruct the independent professional services of a Conveyancing Solicitor to review the title and the contract and to conduct necessary searches.

It is important that before placing your bid you read all the legal documentation, searches and the contract with Special Conditions in order that you are aware what you are potentially binding yourself to.  Your solicitor will be able to advise you of the legal issues that will effect you and therefore when the gavel falls you will not be in for any nasty surprises.
 
Be aware that changes can be made prior to the auction such as additional Special Conditions to the contract.  These changes will be made available prior to the auction in what is termed an amendment / addendum sheet.

Be aware that you cannot alter the terms of the contract after exchange and the consequences for failing to complete are severe.

If you have located a certain property which you are interested in you should register your interest with the auctioneers in order that they may notify you if the lot has been sold or withdrawn prior to the auction.
    
When choosing the property you wish to purchase you should check if it is being sold with tenancy, partially tenanted or fully vacant possession and also if you are liable to pay VAT.

If you are unable to attend on the day of the auction you can bid by Proxy biding in which you place your bid in writing to the auctioneer or bid by Telephone biding.

If you are considering purchasing a property at auction please feel free to contact us to discuss your requirements.

Additional Reading:- A Guide to Selling Property at Auction