Buing home in auction

lipo

Hi all,
I am hoping to buy my first home in the summer.
Could anyone advise me about doing so in auctions, also any links to some good ones would be appreciated.
Ta, lipo

bozzy_2

Property Ladder on BBC1 at 9.30am every day is excellent source of info and advice! You would get a good idea of how it all works and what kind of properties you would find on the auction.

Good luck.

painted_lady

The main thing to know is you already have to have gaurenteed funds in place - most people use cash at auction and although not impossible, unlikely you will be able to buy with long term mortgage. You will also have to pay 10% deposit on the day, just after you win the auction. Again, this is cleared funds, you can write cheque, but the auctioneer might phone the bank to check the money is there. It is usually in the terms and conditions that completion is within 28 working days.
It totally depends on where in the country you plan to buy - where about are you? Internet searches can bring them up. Best advice is, go to auctions now to see how they work, then you are familiar with the process when it matters. Some auctions require you to pre-register, others dont or only do for certain properties. Also, check the small print of each sale - you can usually look at the solicitors details prior to auction, one property I bought once said I was liable for sellers fees too. There can be hidden aspects like that.

lipo

I wish to buy in or around London. 10% deposit would just about be possible to get, but for the rest, I need to get a mortgage.
Thanks such a quick reply, perhaps, as I am going to buy for the first time, it would be easier and safer for me to take the standard, est. agent route?
lipo

painted_lady

It might be an idea to get a traditional mortgage and house purchase for the first time. You would be hard pressed to find a mortagage company to agree to lend you money for an auction property for a few reasons. First, many properties at auction are there because for some reason, mortgage companies wont go near them (need too much work doing, in bad state of repair etc). Then theres the completion within 28 days thing, you would already have to have paid out a lot of money on surveys etc (which the mortgage co would require) before auction, there is no gaurentee you would win the auction, often the starting bids are above the guide price. However, you can sometimes get reposessed properties at auction, can sometimes be good value, but often still need work doing - there is a high demand for auction properties.
anyway, thats just my experience, some people might disagree, but that the auction world as I see and experience it.
Good luck.

lipo

Thank you painted lady, your contribution has brought plenty of light into me case.
lipo