Buying at auction

mstopham

I am looking at purchasing a property at auction in March

It will need some renovation I would think.

What would people recommend I do/get checked before the auction?

simpywimpy

Get a survey done beforehand wherever possible and make sure you have finance in place. You have to place a deposit on the day if you win and will lose it if you then can't pay the balance regardless of whether the mortgage is refused/cancelled etc

poppysarah

Make an offer before hand maybe ...?

mstopham

simpywimpy wrote: »

Get a survey done beforehand wherever possible and make sure you have finance in place. You have to place a deposit on the day if you win and will lose it if you then can't pay the balance regardless of whether the mortgage is refused/cancelled etc

It will be cash purchase so finance is in place. The property is looking a bit dilapidated and has a big extension, what kind of survey would be recommended?

mstopham

poppysarah wrote: »

Make an offer before hand maybe ...?

Yes I am considering that I have to say. Got £100K it's guide is £75-80K but need to get it liveable and pay fees out of the £100k.

princessamy86

If you want to make an offer before the auction you must be able to complete before the date of the auction in most cases, so you'd have to get your skates on bearing in mind it can take a few days for a surveyor to see the property then produce a report! If it was me I would get a full structural survey done as it covers all the potential problems and it will prepare you better for what it's going to cost you in renovations-it's a nasty surprise when you end up having to rebuild walls etc when you weren't planning to. Also when you buy at auction make sure you don't get swept away in the moment and bid too much! Stick to what you want to pay for it. Hope that helps!

hethmar

Bear in mind properties that go to auction go there for a reason, because they are not that desirable to people. There may be a structural fault or something - so get the full survey done.

trogg

Have you been to look at it yet ?

A structural survey is the least you should do,

Take some steps a torch a camera, pen and paper with you when you go to have a look, check the loft.

Take someone who has no interest in the property to give you an unbiased view.

I’ve been scanning the auction catalogues myself, I think the one your after has a flat roof extension over the garage , if that’s the one I would budget for the flat roof to be recovered and also the rendering to the front of the house,
You could get some rough estimates from builders if you give them enough information.

Also I’ve noticed, the one I’ve (you) been looking at is close to the university and medical centre, this type of property is usually of interest to investors , that turn them into HMOs, so you may have some competition .

mstopham

I have taken a look from the outside.

I am taking 2 people with me that are independent for an unbiased view.

Trogg - thanks for the tip on the loft. Yes that sounds like the same one alright. I am expecting some interest as it is so close to the uni and med centre. Would you be willing to PM me with details of the catalogue as the EA told me that it wasn't out til next week and their site has an error when clicking on the pdf download.

jch1801

My partner and I bought a lovely house in auction in September (it is a complete renovation project). It was owned by a property company and when the previous tenant moved out, it went for auction. This is their company policy as opposed to something being wrong with the property.

A couple of things to bear in mind - we only had 28 days to complete without either losing the house or being charged interest. Therefore make sure that you have everything ready. We had also warned our solicitor that it was a purchase via an auction and therefore the importance of the 28 days and armed with this knowledge our solicitor was a complete star! We had also (obviously) told our mortgage leaders, who again were very helpful in the speed of everything.

Also, although we did not get the keys until we had completed, we became responsible for the property as soon as the hammer had fallen so therefore it is well worth having a buildings insurance quote on standby. Again by explaining that the property was an auction purchase we were able to arrange basic cover without being able to answer all the usual necessary questions.

If possible go to all the viewings, that way you can get a 'feel' for the interest in the property. Also speak to the viewing agent. In our case he was being paid to show the property and did not actually work directly for the company and proved a fountain of knowledge.

Check the availability of the keys of the property for a survey, it may have to be done during the viewings.

Finally, be very focused on what you CAN afford to pay and do not get tempted to go higher! £500 here can soon become £5000 that you can't afford! If you are not going to the auction and are therefore bidding by proxy end your bidder in an odd amount, say £100066. This was the advice given to us by our solicitor as if there are a number of people who all bid a maximum of £100000 you will win.

GOOD LUCK!

mstopham

Thanks for the advice! I am viewing it twice at least, and have 2 friends that are coming (1 to each) so I will get different perspectives.

Good advice on the insurance and solicitor, we have the funds ready so that side of things shouldn't pose an issue.

I am going to set myself a sensible top limit and stick to it, I am in no massive hurry to buy so can stick it out for a while yet.

I am going to the auction in person though as it is near to me and at a time that doesn't impact on work.