for sale by auction...what do we do if we like it?

Feanor

Hi all,

have seen a house thats for sale by auction. Guide price £190,000. It says to contact the agent for more info. What happens with auctions? Do you get to view them before hand?

Its in quite a desireable area, do they usually go for well over the asking price?

Thanks

litaus

The guide prices are usually a good indicator of the price, within about 10% or so, depending on the popularity on the day. The reserve is upt o the vendor, but usually around 75%-85% of the guide price. You need to organise to see the property and get all your paperwork in order before the day - surveys, mortgages etc.

Once you decide you want it, choose your price and stick to it to the penny - you'd be amazed how easy it is to get carried away. Once you have made a bid, you are legally bound to complete within a certain time (28 days or something). It's a great way to get a property, possibly for good value, definitely if you want it quickly it's your best bet.

Be warned though, it's not a golden ticket - my best friend bought a property by auction in June 2005 and didn't move in until after Christmas that year - it was sold by a flipper who got in over their head, so check out the property's history and beware.

Auction properties are usually sold 'as is', so Caveat Emptor!!

Eyesparky

litaus wrote: »

The guide prices are usually a good indicator of the price, within about 10% or so, depending on the popularity on the day.

Not always the case. Often guide prices are put up at low levels to attract a room full of keen bidders. I have been at many auctions where most of the properties started bidding above the guide. I suppose it really depends on the auctioneer and their tactics. It is their duty to get the maximum possible for the vendor.

Totally agree with litaus' advice about going in with a plan. Do your research well and if possible get to another property auction (or more) to watch how things happen and get a feel for things. If there are none near you between now and your auction I would travel to find at least one - the expense in time and travel could well save you a lot of money in the end. Apart from that, have fun and enjoy. If you do get this one - fantastic; if you don't - there is always another one.

real1314

Feanor wrote: »

Hi all,

have seen a house thats for sale by auction. Guide price £190,000. It says to contact the agent for more info. What happens with auctions? Do you get to view them before hand?

Its in quite a desireable area, do they usually go for well over the asking price?

Thanks

Guide Price? - depends how they've decided to float it - some are accurate, some are way under the final sale price. They don't have to relate to the reserve price at all either.

What Happens? - They should have viewing dates/times. Go and see it then.

They also often have "legal packs" with all the property details - deeds etc in them - sometimes you have to pay for them (about £20 max)

If you need a mortgage, you'll have to get an offer, survey and acceptance (to an agreed valuation) in advance. You could also put in a pre-auction offer. If it goes over your valuation price, you'd have to find the cash yourself.

Some auction require completion within 14 or 28 days - check what this one is.
You'll have to pay a deposit (typically 10%) on the fall of the hammer - literally - they take you to a room and you do it there and then.

If you can find another auction before then, with the same auctioneers or another, try to get there to get a feel for it.

clutton_2

you can always register a phone vote

SouthCoast

Ignore the spam.

Would love to know how OP got on!