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Buying at auction? risky or not?
lauren_1
Posts: 2,067 Forumite
I have found a lovely 3 bed first floor flat in a rural village, its perfect! Only catch is it's being sold at auction for a guide price of £79,000
Im stumped from there onwards.
Im stumped from there onwards.
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Comments
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Properties can go to auction for a number of reasons - it could be a repossession, there could be structural problems or it might just be that the vendor wants a quick sale. Ask the EA why it is going to auction and see what they say. It is also likely that it will go for a lot more than the guide price.
The other important thing is that if you are the successful bidder then you will need to pay a 10% deposit on the day and complete within 14 to 28 days, so you need to have your mortgage in place before you bid - which will mean getting a survey done before the auction.0 -
If it's a bank repo then it should be a "safe" buy in as much as it had a mortgage on it so the lender would have ensured the legal work etc before they lent out.
Not sure how lenders deal with auction properties. You could get them to value the property before the auction? You would also need a solicitior to give you the "go ahead", by checking the legal documents (even if it is a bank repo).
If you get both of those done it should reduce the risk, but you would then need to win at auction so you've got to weigh up the costs of doing the above to the risk of losing at auction.0 -
Just because the guide price is £79000 don't expect to buy it for that. Auctioneers usually put low guide prices to geneate interest. You could get a valuation and make an offer before the sale.(".)0
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geo555 wrote:Just because the guide price is £79000 don't expect to buy it for that. Auctioneers usually put low guide prices to geneate interest. You could get a valuation and make an offer before the sale.
Many auction houses will publish the prices that properties achieved at previous auctions. For at least some auction houses, the guide prices are a realistic evaluation of what the property is likely to achieve.0 -
Does anybody know if there are Auction House websites, if so please forward any links.0
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