Auction bargains

RHemmings

tonyivb wrote:

An update on next door...

Came home tonight and there is a 'For Sale' board outside... checked on the EA's website and they are asking £320k!

They then have the cheek to say that the asking price reflects that it is need of modernisation!

Cheeky sods. Can you keep track of what happens to it? When/if it sells, and how much for.

stevejay

I have had a mortgage approved in principal and was wondering if i can still buy at auction or are auctions cash sales only, sorry for being so dim but this is all foreign to me

deddogblues

You are required to pay a deposit of 10% and the rest in 28 days. If in doubt contact the auctioneers.

ABN

When you say you have a mortgage agreed in principal, do you just mean you have agreed a specific max amount you can borrow or is it against a particular property you wish to bid for?

Assuming its just an amount you know that you can borrow, in addition to the 10% deposit mentioned by the previous poster there are other things you need to be very wary of.

Once the gravel has fallen you are contracted to buy that property within 28days(normally can be more can be less depends and you will need to check the special conditions attached to that property). Failure to complete within that time would leave you facing very large penalties.

Now within that 28 day period your solicitor will need to have completed all the searches etc and you will have needed to get the property surveyed. Only after those have been completed will the mortgage company will decide how much they are prepared to offer you against that property which could be considerable less that your final bid. You would then have to fund that shortfall yourself.

You can normally only get access to the property when accompanied by either a member of the auction house or vender as such getting surveys done is more difficult and costly both in time and monies.

Buying at auction is a risky business under normal circumstances trying to buy on the back of an undefined mortgage is doubly risky and not something I would recommend.