Buying a house from auction

olx1s

Hi All

I am planning to bid for a house in auction on 27 March 14. However I am new to this and have no prior experience of auctions. I have done the viewing of the house and it looks alright. I have contacted the auctioneer and obtained the sales pack/legal pack.

This pack contains the following:

Energy Performance Certificate
Sales Statement
HMLR Official Copy Entries & Title Plan
Personal Local Authority Search
Official Drainage and Water Search
Damp Proof 10 Year Guarantee dated 22/11/2012

I need to know what steps do I need to take before going for bidding. Do I need a solicitor to go through this legal pack or Do I need valuation of house before bidding? Do I have sufficient time to do these things?

I wait for your valuable suggestions.

Regards

Dan

G_M

Before you bid:

* have your money in pace - cash (all of it) or a firm mortgage offer (not a mortgage in principle). That means paying to apply, getting the valuation done etc
* be sure the property is in the condition you want. So either assess it yourself or have a survey done
* be sure the legals are OK - so unless you are legally confidant, get a solicitor to check

I would also advise you

* google 'buying property at auction' - there are lots of guides online
* attend at least one other auction (keep your hands in your pockets and leave your chequebook at home!) so you get a feel for how they work

Note all the above can cost money upfront, which will be lost if you do not achieve the winning bid.

da_rule

If you are buying with a mortgage then you need to have this approved. It may be worth getting a valuation, as the 'fun' of the auction may mean you end up paying over the odds. If you pay over value you may find it very difficult to get a mortgage.

olx1s

I am a cash buyer.

olx1s

G_M wrote: »

Before you bid:

* have your money in pace - cash (all of it) or a firm mortgage offer (not a mortgage in principle). That means paying to apply, getting the valuation done etc
* be sure the property is in the condition you want. So either assess it yourself or have a survey done
* be sure the legals are OK - so unless you are legally confidant, get a solicitor to check

I would also advise you

* google 'buying property at auction' - there are lots of guides online
* attend at least one other auction (keep your hands in your pockets and leave your chequebook at home!) so you get a feel for how they work

Note all the above can cost money upfront, which will be lost if you do not achieve the winning bid.

Thanks for your reply and suggestions. I am a cash buyer. Ok I will hire a solicitor to check the legal docs of the pack. Is solicitor required just to go through the pack or to perform searches?

Property look alright and I am satisfied with the condition. But questions is, how would I know if there are some structural issues with the property? Do I need to get survey done to check this? Asking this because I have seen properties in post which are not fit for mortgage because of structural issues.

I look forward for your reply.

Regards

G_M

olx1s wrote: »

Ok I will hire a solicitor to check the legal docs of the pack. Is solicitor required just to go through the pack or to perform searches?
Depends what is included in the Legal Pack provided. Your solititor will advise.

Property look alright and I am satisfied with the condition. But questions is, how would I know if there are some structural issues with the property?
This appears to be 2 contradictory statements!
1) you are 'satisfied'. OK, so save money on the survey and rely on your judgement.
2) You do not know if there are structural issues. So how come you re 'satisfied'??!!
Do I need to get survey done to check this?
No, not if you trust your judgement and are satisfied.
Yes, if you do not trust your judgemnt!
Asking this because I have seen properties in post which are not fit for mortgage because of structural issues.
Indeed. This is a real risk.

Regards

and please seriously consider attending an auction or two before you actually bid.....