Attending a property auction for the first time

geek84

Good Morning folks


I am thinking of going to a property auction in order to secure the purchase of a property that I am interested in. It will be my very first time, so I’m not sure what to expect.



Would someone be kind enough to explain the process to me?


I presume I am allowed to view the property before the auction goes ahead?


Presumably, at the auction, you just shout out the next highest figure that you are prepared to pay until you hear the words going, going, gone!!


Any advice would be greatly appreciated.

nonnatus

6am every weekday morning - switch on BBC2 and watch Homes under the Hammer - you'll learn loads about what to look out for, what to avoid and how much money you can make if you get things right!

m_13

Home under the Hammer is on this morning on BBC1. It's an older episode and there are more episodes available on iPlayer. Set it to record if you can for a few days and you'll see the different style of auctions.

There are usually block viewings for the property either listed in the catalogue or provided when you contact the agent dealing with viewings. They don't tend to do that many and it's a case of turning up (or making an appointment to turn up) and looking around at a time when other interested people will be there. You should obtain a copy of the legal pack and arrange for your solicitor to look at it. Sometimes they are available online. There will be a copy at the auction to look at it but that's sometimes too late if there are problems.

You'll need to register at the auction to get a bidding card with your number on. There's no shouting out at the auction other than the starting price if the auctioneer asks where to start. Bids go up in set amounts set by the auctioneer. You raise your bidding card to place a bid. When the hammer falls you'll be approached straight away to go and complete the paperwork and pay the deposit. Be careful to check what they'll accept for payment and what ID they want. You usually have to complete within 28 days so that's not long enough to get a mortgage through in most cases.

If you can, go along to a couple of auctions and watch the process before you go to bid. Make sure you know what you want to bid to and stick to it. It's an exciting environment and easy to go over your limit.

PasturesNew

If you need a mortgage, you'll need to get the house surveyed and mortgage approved before you go to the auction - and to already have sourced a solicitor and got them to check the legal pack for you and for them to be ready and know that it's a fast completion if you buy it.

G_M

Do not bid at your first auction. Go to several before the one where you want to buy, and get the feel for it.

Do not bid unless you have already

* checked that the property is sound (survey etc)
* checked that the legals are sound (solicitor, searches etc)
* checked that you definately have the money (not a 'mortgage in principal)

Once you bid and win, there's no turning back, so it's too late to start checking.

Jenniefour

And if you do want to bid on this particular property, having considered all the sound advice already given, then try and go with someone who has been to one before.

And, no, shouting is not the way to do it! I regularly bid at auctions (not property) and on my first bid I make sure the auctioneer has seen me by raising my hand. After that I just nod to increase my bid and shake my head when my limit is reached so the auctioneer knows I'm out.

I have been to several property auctions and a family property was sold last year at auction. Although some auctions give out cards and expect you to use them to bid, plenty don't. At some you only hold your card up when you're the successful bidder. Some don't do this either.

Can't reiterate enough about doing all the checks before hand - many a person has found out something significant after the event because they failed to do so something they should have done e.g. view the property, get a survey, have their solicitor look over the legal pack etc. And sometimes these 'somethings' are big headaches (like short leases, unusual restrictions, property about to fall down) and had the clueless buyer known beforehand they definitely would not have wanted to buy. All these issues usually have a cost to them.That's why some properties are in the auction anyway - there's something about them that ordinary folks wouldn't touch with a bargepole.

martindow

Be aware that many houses in auctions are there because they have problems and in some cases are mortgageable. Check what additional fees and buyer's premiums will need to be paid.

As has been said if you are proposing to buy with a mortgage everything has to be in place. If you don't complete at the end of 28 days it can be ruinous.

BargainGalore

3 posts like this next it could be :spam:

StewanBiblos wrote: »

thank you so much

AlexMac

Good advice

G_M wrote: »

Do not bid at your first auction. Go to several before the one where you want to buy, and get the feel for it.

Do not bid unless you have already

* checked that the property is sound (survey etc)
* checked that the legals are sound (solicitor, searches etc)
* checked that you definately have the money (not a 'mortgage in principal)

Once you bid and win, there's no turning back, so it's too late to start checking.

which I completely ignored as I didn't have GM's advice when I 1st bought at auction- and, as I've said in a previous post I nearly lost
- my deposit (paid when the hammer goes down and forfeit if you don't complete in 28 days)
- my mortgage (offered in principle only by NatWest, then withdrawn after survey despite the fact I told 'em I was buying wreck)
- my Christmas (I bought in mid Dec, but still had to complete in 28 days!)
-my marriage (diaried for the week after completion), as my fianc!e decided my timing and judgement might be flakey...

But, thanks to Halifax (who magicked up a loan of £60k in a fortnight), a great solicitor and wifely forgiveness... it all turned out right and I completed by the skin of my teeth, then doubled my money in three years!

The one wise thing I did was to set a limit then ask the auctioneer to bid on my behalf. So that was just one bit of stress less- but I wouldn't recommend doing the rest of it my way; good luck