Buying at Auction and Bridging the gap

Davesnave

I see nothing in your post which hints at why the house is being auctioned.

Very often, inexpensive houses that are sold in this way have some kind of problem, structural or legal. Yes, sometimes owners might want an assured and rapid sale, so auction properties are not all duds, but it's vital that you understand the risks and seek to minimise them.

What steps have you taken to assure yourself that this isn't a house with more than its share of issues?

hazyjo

Would never consider this while in a chain. It could take months to sell yours. I rushed one through as wanted to exchange to an investor within 3 weeks - but there were so many issues it ended up taking 5 months!


I've also had several chains collapse and twice it's taken me in the region of a year from start to finish.


If you cannot complete without your equity, don't do it. Most sales will take around 12 weeks.


Or go with Mutton Geoff's suggestion of trying for a private purchase not through the auction.

G_M

Joanne999 wrote: »

Pretty good credit rating, but not sure I could fund the Auction amount with credit cards? Is that what you mean?

Yes.

£20K is not a huge amount. Back in the pre-crash days I bought a £70K property funded entirely by credit cards. Transfer the money from card to bank, then standard bank transfer.

You just need to apply for sufficient credit on the card(s).

But unless you can do this or have some other 'Plan B', I repeat - do not bid unless you Exchange first on your sale.

Joanne999

Davesnave wrote: »

I see nothing in your post which hints at why the house is being auctioned.

Very often, inexpensive houses that are sold in this way have some kind of problem, structural or legal. Yes, sometimes owners might want an assured and rapid sale, so auction properties are not all duds, but it's vital that you understand the risks and seek to minimise them.

What steps have you taken to assure yourself that this isn't a house with more than its share of issues?

The house was on the open market in October 2017, the sale fell through for whatever reason, so I have a good idea of the realistic valuation and know the guide price has been set to draw as many people in as possible. I live in the area and know the area very well and have viewed the property with a builder and read the legal packs which recommends wall ties and damp proofing. I believe the person has died and the family want a quick sale, they aren't open to offers before the auction.

Joanne999

martindow wrote: »

Another issue is that the guide price can often be low to draw in interest. It might go for a lot more.

Yes I think it will