Buying an auction property before the auction

lea123e

Good afternoon all,

Wondered if anyone could provide a some information on buying an auction property before the auction.

If an offer is put in and accepted prior to the auction, would this go through as a regular property transaction? Or do you still have to comlete withing 28 days have a 10% deposit upfront etc?

Cant seem to find much info about it online, am sure there will be an expert about somewhere

Many thanks in advance

Doozergirl

They would either expect it as auction with an almost immediate exchange or they would consider it if exchange of contracts were taking place before the auction and would certainly expect completion within 28 days. If you were planning to exchange after the auction, they wouldn't consider the offer.

(The only time I can think where they would is a repossession where they would have to think hard about it, but might allow you to exchange later, but within 28 days of accepting the offer)

theartfullodger

lea123e wrote: »

.........

If an offer is put in and accepted prior to the auction, would this go through as a regular property transaction? ........

What answer did you get from the auction company/vendor's solicitor when you asked them?? Sorry, but I can't read their response from here..

Can't see how it would be otherwise that they'll have their standard terms (whatever they may be..) but you are at liberty to try and negotiate others (e.g. Offer them £25k over guide cash if they complete within 2 days or any other deal...)

poppysarah

Probably to be sold within 28 days the same as as if at auction.

Get a solicitor to read the info pack for you first though before you make an offer.

lea123e

Thanks guys,

It was initially a hypothetical question as in I dont have my eye on anything currently, but would be interested in buying in this way if the right property comes along

lea123e

If I see anything of interest I shall pursue it and let you know what the official procedure is!

Doozergirl

Why would you want to buy an auction property before auction?

theGrinch

it would still come under auction room conditions unless you were able to negotiate them out. in my experience, while some properties are sold before the auction it remains a small minority of properties and hugely dependent on the wishes of the vendor.

Blackdog

I agree the normal auction conditions would apply and the property would be yours within 28 days. You can also buy properties that don't sell in the the auction direct from the auctioneer, funnily enough they usually sell within minutes of them not selling in the auction itself. Same auction conditions and time frame would apply.

Blackdog

Doozergirl wrote: »

Why would you want to buy an auction property before auction?

If you really wanted the property then you may well but it before the auction to ensure you secure it. Of course you take the risk that you are paying more than you may have needed to but at least you get to own it!

Doozergirl

Blackdog wrote: »

If you really wanted the property then you may well but it before the auction to ensure you secure it. Of course you take the risk that you are paying more than you may have needed to but at least you get to own it!

Nice that post was the only one that actually got a thanks from the OP.

As soon as they start viewings on an auction property, they know what the interest is based on the guide price. They will also know how many legal packs have been sent out.

If they go for an offer before auction it's because they think they're unlikely to do better than that at auction. Auction properties aren't hotly contested any more, a lot of them - even ones that I think look great - don't sell at all on the day and are being resubmitted into later auctions. I'd really advise against it if you are doing it to try and seal the deal. If they agree with you, they probably know something you don't.

We were really tempted to offer before an auction once. Really tempted, but we held off and went to auction. No one else bid on it at all, despite the room being packed. We saved £42,000 on the price we would have offered before auction and £20,000 on the guide price.

Developers are the ones that usually go for auction properties. If you want one for a home, you're almost certain to win at auction because you're prepared to pay more than they are. And not a lot of owner occupiers can risk the auction so you don't get much in the way of competition from other potential O/Os