Buying a house which didn't sell at auction.

weeg

I'm trying not to sound stupid here, but...
There's a house listed in rightmove for sale by an auction house. It's listed as 'contact us now to buy for £'. It is NOT listed on the auctioneers website as part of their catalogue.

So, my question is this: do the 10% down, 28 day rules still apply? Or, in this circumstance, are they acting like a regular agent? Ie, I make an offer and complete as usual.

(if it make a difference: it's for sale at what was listed as the guide price; it's in Scotland, so there is a home report; it's for sale by accountants as part of a bankruptcy.)

googler

"do the 10% down, 28 day rules still apply? "

Ask the auction house.

weeg

googler wrote: »

"do the 10% down, 28 day rules still apply? "

Ask the auction house.

I was hoping to get an idea of if there are 'usual' rules before I speak to them. Generally I find being well informed is a stronger bargaining position. Hence why I thought I'd pick the collective brains here.

lincroft1710

weeg wrote: »

I was hoping to get an idea of if there are 'usual' rules before I speak to them. Generally I find being well informed is a stronger bargaining position. Hence why I thought I'd pick the collective brains here.

We would only be guessing, an auction house selling a house by this method is unusual.

eddddy

weeg wrote: »

I was hoping to get an idea of if there are 'usual' rules before I speak to them. Generally I find being well informed is a stronger bargaining position. Hence why I thought I'd pick the collective brains here.

The auction house and vendor will certainly be hoping that someone makes an unconditional offer with 28 day completion.

For example, if bids dried up at £10k below reserve, the auctioneer might hope that the highest bidder will increase their offer by £5k and the vendor will accept an offer £5k under reserve.

As a starting point, you could tentatively ask the auction house if the vendor might accept an offer "subject to survey" or "subject to mortgage" or "subject to contract". (But I suspect they would not 'take it off the market' while they wait.)


But also consider why the property didn't reach it's reserve price at auction. Could there be serious legal / structural / search related problems?

I don't know if you need a mortgage, but the majority of properties that go through auctions aren't mortgageable.

midnight68

I sold one month after auction and the usual auction rules applied - exchange of contracts with ten percent deposit and then completion 28 days later.

weeg

Thanks for the feedback folks. We could do the 10% deposit. Won't have the rest of the money until 31st jan.

Been to see it tonight. It's a solid house in decent condition (and a tower block for a neighbour). Structurally fine and with a mortgage valuation of £5k over asking price.

I'll phone the auctioneers tomorrow and see what the craic is and if there has been a lot of interest.

weeg

I'm just following up on this, in case anyone is interested/ nosey (as I often am on threads).

They would still be looking for 10% upfront, refundable if the sale didn't complete. We would be able to specify our own date of entry though. (remember, this is Scotland, a binding completion date always forms part of an offer here under normal sales practice).

It's a nice solid 1930 semi. No structural issues, no ground issues. Would be worth £50k more 1/2 mile away from the adjoining tower block.

Slinky

So are you going for it?

weeg

Probably. It's a good house. Neither of us are in love with it, but it's a lot of house for the money. Just a shame the garden is soooo overlooked.

Slinky

I looked at a 1930s house like that - long garden with a road full of other houses backed onto. Would have had about 8 or 10 neighbours down one side and 3-4 at the bottom. Decided against it.