Property at auction?

CoolNameHere

Hi there, as you may see I'm a MSE newbie, and I'm wondering if I could get pointers on buying property at auction. Are there any guides on this website? Does anyone have any useful tips they would like to share?

Cheers!

macaque_2

CoolNameHere wrote: »

Hi there, as you may see I'm a MSE newbie, and I'm wondering if I could get pointers on buying property at auction. Are there any guides on this website? Does anyone have any useful tips they would like to share?
Cheers!

The most interesting advice I heard on auctions came from someone who had made a lot of money doing it. He did almost no research on the properties before hand. He would go to the auction on the day and bid for anything that looked cheap. When he bought a lemon as would happen sometimes, he would simply put it into the next auction and get his money back (or most of it).

PasturesNew

But, he probably did that in a rising market... so virtually no risk.

Different ballgame in a falling market.... different game entirely.

Running_Horse

I vaguely remember something about never bidding from the start, come in late and be confident, those trying anxiously for another £500 look desparate and will lose out to a serious buyer.

In future there may be more better quality homes alongside the wrecks and more properties not reaching their reserve, where a private bid could be worth a try.

obsessed_saver

What is the general rule for deposits and completion time limits and mortgages and such? Or are auctions for cash buyers only?

real1314

pretty much cash only. to go with a mortagage you have to have the survey, searches and everything else done beforehand with no guarantee of actually getting the property

Doozergirl

real1314 wrote: »

pretty much cash only. to go with a mortagage you have to have the survey, searches and everything else done beforehand with no guarantee of actually getting the property

That's not strictly true. You don't *have* to have it all the conveyancing done beforehand, though much of it would be prudent for anyone buying, not just someone in need of a mortgage. Searches are often included in the legal pack which is available for a much smaller fee than normal searches. I'm not sure how HIPs affect the state of play now whether all houses of relevant size must produce this info beforehand? Normally, things can be conspicuous in their absence ie. no searches - what's in them?

A 10% cash deposit is needed as you exchange contracts directly after the auction (it is not the exact moment the gavel falls - impossible) you will need to complete normally within 28 days. A good mortgage broker would be the best point of call to find a lender able to deal with those requests but yes, cash in the bank, means you have the confidence to be able to complete on time.

dolce_vita

Here's an oldie but a goodie :

"How NOT to bid at auction"

Greed and stupidity personified.

Classic.

real1314

I'm not so sure how throwing £13k extra into a property that wouldn't start at £107k can be classed as greed. Stupidity definitely though.

ginger_nuts

if its a ropo it may have to complete in 14 days ,depending on the lender .