House auction

loulou41

Does anybody know how this works. Have seen a house on auction at £275+. Do you actually put a bid through the EA? Can you view before bidding? Thanks

cattie

Yes you can view before bidding & details should be available in the catalogue if you have one. It's wise to have the house surveyed before you think about bidding for it.

It's also possible to make an offer before auction in the hope it will be accepted, as sometimes this does happen. You would do this via the ea handling the auction.

If bidding for the property you need to register before you can bid at the auction.
Many properties at auction go for far higher than the guide price, so you need to be aware of this.

vansboy

Ok...

The £275+ figure MIGHT be just a guesstimate & be miles out (over or under) but there'll probably be a reserve price, so you won't buy it for a fiver!

The auctioneers/agents will probably have designated viewing days & if you were sensible, you'd have a look then & arrange a surveyor before you bid!

The auctioneers will take a bid of the maximum you'd like to spend & use this as their ammunition against other interested buyers, on the auction day. It's a good idea, if you're not used to an auction situation.

Best check the auctioneers terms, they all have their own requirements. Dont forget you'll need mortgage & finances in place well before the sale & a 10%minimum cleared into your bank account as soon as they 'drop the hammer'.

It'll need insuring by you at this precise moment too!!

Have alook through some of the big national auction websites & see how they do things.

Let us know how you get on!!

VB

clutton_2

i would suggest that you go to an auction if you possibly can to see how it all works before you bid at one.

""10% minimum cleared into your bank account as soon as they 'drop the hammer'"" i assume vansboy means that you have to pay 10% of the agreed price when the hammer falls and if you do not complete with 28 days you lose the deposit - and you will !!!!

You can also put in a telephone bid, but you will have to register and prove your ID and lodge a deposit cheque in advance if you do that.

Do get a lawyer to check out the legal pack before bidding - some auctioneers charge about £15 for the legal pack, but it is crucial that you buy the pack, as it is definitely CAVEAT EMPTOR and auctioneers have pulled some pretty sneaky stunts in the past !!

once that hammer goes down its yours warts and all !

DO stick to your budget whatever you do !! it is very easy to get carried away.

Debt_Free_Chick

It is absolutely essential that you have a survey BEFORE you turn up at the auction. The survey tells you what you're paying for ... so you can't decide how much you want to pay, without the survey (unless, of course, you are prepared to say "S0d it!" to the condition and just pay regardless). Once you've bought at an auction, there's no backing out. You've effectively "exchanged" contracts and you have 28 days to complete.

If you need a mortgage, you will also need to have that in place (i.e. have a mortgage offer) before you bid.

Not for the faint-hearted ... you really need to do lots of research to understand what you're letting yourself in for.

david29dpo

on a repossession you have to complete in 14 days!

loulou41

Thanks for all your advice, not for the faint hearted and it seems a lot of hassle. Being a newbie, looking to buy for my daughter and son, better stick to the EA. Thanks again.

maryjane01

I am going to an auction for a house on Thursday! I am a FTB and my OH can't go, so I am on my own. I have been feeling nervous all week! I am from Australia where auctions are the norm albeit in a very different format. The auction is held out the front of the house that is being sold, or in the front garden if it is big enough. I have been to plenty of those because it is Saturday afternoon entertainment for all nosy neighbours as you get to see right through the house too. I have never been to one of these big auction houses where they sell over 100 lots in a matter of hours. I think it might be better my OH isn't there as we would probably wind each other up. Wish me luck and I will try and remember to come back here and tell you all how it went.

cattie

maryjane01 wrote:

I am going to an auction for a house on Thursday! I am a FTB and my OH can't go, so I am on my own. I have been feeling nervous all week! I am from Australia where auctions are the norm albeit in a very different format. The auction is held out the front of the house that is being sold, or in the front garden if it is big enough. I have been to plenty of those because it is Saturday afternoon entertainment for all nosy neighbours as you get to see right through the house too. I have never been to one of these big auction houses where they sell over 100 lots in a matter of hours. I think it might be better my OH isn't there as we would probably wind each other up. Wish me luck and I will try and remember to come back here and tell you all how it went.

There's a programme on tv over here showing property auctions in Australia. It looks a very entertaining way of doing things. But seems fairly intriguing in that the bidding can be going quite well then the auctioner has to go off & check with vendor whether bidding has pushed price to an acceptable level & property can officially be on the market.

Sometimes prices go way above what they had hoped to achieve, other times they decide they have to settle for less to reach a sale. Occasionally the unlucky vendor will decide to withdraw the house & decided to have another go at selling at some point in the future.

I'm not sure if it's a more or less stressful way of selling property than the way we do things here.

maryjane01

Both ways have there pros and cons. The biggest advantage of proprty buying and selling in Australia is you don't get chains. You go on the market when you want to sell. If you want to buy you pay I think 10% deposit at auction or for private sales make an offer and pay deposit when it is accepted. Then settlement is normally either 30 or 60 days. If your planning on selling a place to buy and you buy first, but your place doesn't sell in time you get bridging finance. If you sell first then can't find a place to buy you rent. These chains that drag out 6 months long or more seem ridiculous to me, but it is all what you are used to!