Property Auction

guapoandbella

Hi
First time on this forum but been following the site for a while and hope I will find the answer to my questions from people who bought a property on Auction.

1- What's is the whole process to buy on Auction?

All I know if you are the winner, you put 10% down on the day and in 28 days you'll complete. How to find a quick mortgage in such short time, as I bought few flats before and never got mortgage approved in 28 days.

Survey? You may pay a survey and on the auction day you find out: sold prior or withdrawn

Anyone to help in this subject?
Many thanks

Here the latest news: I been to a auction (after watched 1000 times on TV), houses under the hammer, etc...and find out that in this particular auction many flats/houses on a guide price of £200K, been sold for £285, £265 and one in particular was sold from £225K (guide price), for £305K. I spoke to few people in the room at the end and they say: very low price to atract attention and to bring the bidders in...........one lady told me: careful, sometimes you pay much more than buy from a estate agent......I'm still confused about the whole process.......specially when bargain is not a bargain............Do you agree with me????????

david29dpo

yes, 10% at drop of hammer. 28 days to complete, sometimes 14 if its a re-pro. i get a mortgage agreed before hand without paying any fees until after the auction. ring lender 3 seconds after the auction to get valuer in and pay the fees. i have not had a survey done to any off the properties i have bought, but i only buy newly build re-pro flats.

guapoandbella

thanks a lot david29dpo

byaru

Guapo, I am not a property expert myself but i am also interested in buying at auction. I did ask some questions that were answered on this forum, hopefully you will find these useful. Just type ' auction' in the search engine above and you will see alot discussed on auctions. Hopefully you will have your answers.
Good luck.

guapoandbella

Thanks for advice, followed the "auctions" thread and help me to clarify some questions. I'm researching areas, guide prices, etc...
many thanks

byaru

Good. Alot of research is worth it before you regret at the end of it all with ' i wish i had.........' . Also, visiting the auction houses just to get the feel and alot more AND STICKING TO YOUR BUDGET. Remember, auctions are like a war whereby the winner takes it all. Every person of course wants to win. The bidding process with people trying to get their hands of the property makes the price higher. In fact, i have come to learn that prices at auction are sometimes more than what you can pay for a house on the market. So do your homework very well first.

django_2

Hi every one my first post here. This is a very interesting topic actually the one i was looking for. My question is where can i attend property auctions in london specialy in west london area? Are the auctions for freeholds or lease holds or both? where can i find previous sold prices ? Any tip is appreciated as i'm new to this forum and property. Cheers

gallygirl

http://www.ukpad.com


Try this link, you can seach by town or just put up the whole of the UK and pick the nearest. When I 1st looked into this some years ago the auction houses used to charge for catalogues - most now seem to be on line. Yet again, how the internet has changed our lives for the better!

star1_2

I've been to afew auctions - my advice would be :-

- Go to some auctions, see how the process works (it's very intresting to see the process infront of you, as opposed to watching a TV programme)
- Get the catalogues in advance, read the websites
- Read the specific auction houses T&Cs (they vary very slighly) some differ in the required ID, form of payment etc.
- If you are intrested in any specific proerties, research them throughly
- If you desperatly want a property, it's possible to contact the agent/auction house in advance to see if a purchase can be made prior to auction (this does happen).
- Go and see the property, it's not unheard of to see "sales" and "auction" boards on a property - you might be able to buy (as above) prior to auction.
- As others have mentioned, stick to the budget and "don't get carried away"
- Investigate your means of funding prior to auction, and don't rely upon a tradational mortgage to fund an auction property within the required time scales (normally 28days, not all mtg's can be done by your average lender in this time scale - despite what they say), unless you budget for extra intrest payment to the auction house for "late payment", or can arrange a "bank bridging loan" until the mortgage funds are availaible.
- Bear in mind that Legal searches etc, may not be completed in 28 days, you might want to pay upfront and initiate these prior to auction or see the LA concerned.

Hope that helps.

Debt_Free_Chick

guapoandbella wrote:

All I know if you are the winner, you put 10% down on the day and in 28 days you'll complete. How to find a quick mortgage in such short time, as I bought few flats before and never got mortgage approved in 28 days.

Survey? You may pay a survey and on the auction day you find out: sold prior or withdrawn

Anyone to help in this subject?
Many thanks

Pretty much all of the stuff you would have done after your offer is accepted, with a "normal" property purchase, must be done before you set foot in the auction room.

So ..

You need a mortgage offer in principle. Tell the lender you are intending to buy at auction!

You will need a survey - otherwise, you have no idea of the state/quality of the property you're buying.

You will need to have the searches done - ditto (otherwise, you have no idea of the state/quality of the property you're buying).

You need to have a solicitor appointed (who will do the searches) and ready to go. This means that you must have signed or been issued with the appointment letter or terms of business; provided satisfactory proof of ID; provided details of finance ...... etc. You could do all this "now" if you are committed to buying at auction, at some point in the near future.

You will need to set yourself an absolutely maximum target price and make sure you DON'T exceed it - otherwise, you may not have the funds to complete. Those TV programmes always feature people who exceeded their budgets. Then again, they always feature people who've gone on to do well, regardless - but that's what makes good TV

Essentially, you really need to be at the exchange of contracts stage, as when you successfully bid at auction, you are exchanging there and then, with a firm commitment to completion in no more than 28 days time.

You need to do more research as you don't sound like you're at the stage to be able to bid, knowing exactly what's involved. And you need to pay more attention to some aspects of those TV progs, as they point a lot of this

guapoandbella

Thanks very much for all replied messages I got from you guys !!!!!

I will be back soon I have some news about My property that I bought at Auction...........Hopefully will work !!!

See you again........

Many thanks